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Bask Bank raises the mileage earning rate on its AAdvantage savings account — what you need to know

Dec. 01, 2022
5 min read
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Editor’s note: This post has been updated with the latest information.


Bask Bank and American Airlines have an existing partnership that lets AAdvantage members earn interest in the form of miles, meaning members will earn travel rewards instead of interest on their money. This can be advantageous if you value AAdvantage miles highly — especially given the relatively low rates of return on many savings accounts.

On Monday, Bask Bank announced that it’s again raising the earning rate on its Mileage Savings Account. This time, the rate is increasing from 1.5 miles to 2 miles per year. Depending on how much you keep in a Bask Bank account, this could mean accruing thousands of extra AAdvantage miles per year.

Let’s take a closer look at Bask Bank’s new Mileage Savings Account rates and how you can use the account to earn miles on your cash savings.

Bask Bank’s new AAdvantage earning rate

Bask Bank is now awarding more miles for funds saved with its Mileage Savings Account. ZACH GRIFF/THE POINTS GUY

Effective Dec. 1, Bask Bank has raised the earning rate on its Mileage Savings Account from 1.5 miles to 2 miles per dollar saved per year. This new earning rate applies to new and existing Bask Bank accounts.

TPG currently values AAdvantage miles at 1.77 cents apiece, effectively giving you a 3.54% return on your funds yearly. In practice, this can be much higher or lower depending on how you choose to redeem your miles.

This is a far higher return than most traditional banks offer on savings accounts. For example, Chase’s standard savings account only offers a 0.01% annual percentage yield on deposited funds. Likewise, at the time of writing, many high-yield savings accounts like Marcus by Goldman Sachs earn a 3.0% APY.

Bask Bank’s Interest Savings Account now earns a 3.85% APY (accurate as of Dec. 1, 2022), which is better than most other accounts. Do the math and see if it makes more sense to earn cash or miles on your savings. Sometimes, it could be worth splitting your savings between Bask's Mileage Savings Account and a traditional savings account to diversify your earnings.

Related: How to earn miles in the American Airlines AAdvantage program

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What is Bask Bank’s Mileage Savings Account?

You can earn miles toward your next big AAdvantage redemption with Bask Bank. ZACH GRIFF/THE POINTS GUY

Bask Bank’s Mileage Savings Account is a savings account that earns AAdvantage miles instead of interest on deposited funds. The bank is owned and operated by Texas Capital Bank, so all funds are insured by the Federal Deposit Insurance Corp. There’s no monthly account fee to keep your Mileage Savings Account open, regardless of how much you deposit.

Miles earned with the Mileage Savings Account are accrued daily and then deposited in your AAdvantage account monthly. Your monthly payout is based on your account’s average monthly balance. These miles are the interest you earn on your savings, so no cash interest is earned on deposited funds.

As an example, if you keep $70,000 in your Mileage Savings Account for one year, you’d earn 140,000 AAdvantage miles based on the new earning rate of 2 miles per $1 saved. This works out to roughly 11,667 AAdvantage miles per month — though the daily accrual process means you’d earn slightly more for months with 31 days and a bit less in other months.

To put this into perspective, 140,000 AAdvantage miles is more than enough for a round-trip business-class ticket to Europe when saver award space is available.

It’s also worth noting that Bask Bank frequently offers sign-up bonuses for new members. Right now, you can earn 5,000 Loyalty Points when you keep a $25,000 balance for 90 consecutive days out of the first 105 days following the initial account opening. You must deposit the funds within 15 days of opening a new Bask Mileage Savings Account. This is only available to new Bask Bank members.

If you have cash in a savings account and would rather earn miles, Bask Bank could be a good option. Just note that beyond the sign-up bonus, you don’t earn Loyalty Points with Bask Bank. So, if you’re chasing AAdvantage elite status this year, check out TPG’s full guide to earning Loyalty Points for other options.

Finally, it’s worth noting that these miles are considered income for tax purposes. Per Bask Bank’s FAQ page:

AAdvantage miles awarded by Bask Bank for maintaining a deposit balance are viewed as interest income. This income will be reportable to the IRS and to you for the year in which the miles were posted to your AAdvantage account.

As a result, you’ll receive a 1099 for these earnings, with a taxable value of 0.42 cents per mile.

Related: How I plan to earn American Airlines Executive Platinum status with Loyalty Points

Bottom line

Bask Bank has raised the earning rate on its Mileage Savings Account from 1.5 miles per dollar saved annually to 2 miles per dollar saved annually.

Depending on how much you value AAdvantage miles, this could be a great way to earn miles on your savings. Just be sure to crunch the numbers (and check with a financial advisor) to see if it makes sense to earn miles instead of interest on your savings. Like anything in the points and miles world, AAdvantage miles could be devalued without notice, effectively devaluing the mileage interest you’ve earned on your savings.

Featured image by COOPER NEILL/AFP/GETTY IMAGES
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
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Rewards

2 - 10X points
10XEarn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
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75,000 bonus miles
Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel

Annual Fee

$395

Recommended Credit

740-850
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Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

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The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.

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  • Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
  • Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
  • 10,000 bonus miles (worth $100 toward travel) each account anniversary.

Cons

  • The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
  • If you don’t travel frequently, this might not be the best card for you.
  • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
  • Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
  • Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
  • Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
  • Earn unlimited 2X miles on all other purchases
  • Unlimited complimentary access for you and two guests to 1,300+ lounges, including Capital One Lounges and the Partner Lounge Network
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
  • Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
  • Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023
Best card for premium perks while traveling
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards Rate

10XEarn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
5X5X miles on flights booked through Capital One Travel.
2X2 Miles per dollar on every purchase, every day
  • Intro Offer
    Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel

    75,000 bonus miles
  • Annual Fee

    $395
  • Recommended Credit
    Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    740-850
    Excellent

Why We Chose It

The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.

Pros

  • Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
  • Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
  • 10,000 bonus miles (worth $100 toward travel) each account anniversary.

Cons

  • The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
  • If you don’t travel frequently, this might not be the best card for you.
  • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
  • Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
  • Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
  • Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
  • Earn unlimited 2X miles on all other purchases
  • Unlimited complimentary access for you and two guests to 1,300+ lounges, including Capital One Lounges and the Partner Lounge Network
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
  • Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
  • Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023