Bask Bank’s Interest Savings Account Review: A More Rewarding Way To Save
Saving more money is among the top financial goals of Americans, and also one of the most difficult to obtain. Psychologically, it’s challenging to start and stick to a new habit that requires continuous motivation and resists impulse. And setting aside a nest egg is no small feat when you’re living paycheck to paycheck, as are the majority of Americans.
But at least one aspect of saving money should be easy and perhaps even pleasing. And that’s where your bank comes into play. The best financial institutions provide not only a place to set aside your money but a place where that money can grow without its members having to do a thing. Among the many contenders with interest-friendly savings account options is Bask Bank, which recently unveiled its new Bask Interest Savings Account.
How Bask Bank’s Interest Savings Account Works
The Bask Interest Savings Account stands out from the crowd due to its significantly above-average return rate, its ease of use (no brick and mortar hassle to go through) and the no-fee flexibility it gives users moving money to and from other Bask Bank accounts — namely the Mileage Savings Account.
APY: 1.61% — subject to change at any time
Minimum balance to open account: None, but a deposit must be made within 60 days of opening to prevent possible account closure
Compounding and crediting frequency: Interest is compounded daily and is credited to the account on the last day of the statement cycle.
Closing an account: If the account is closed before or on the last day of a statement cycle, accrued interest for that period will be withheld.
Transaction limitations: 6 per month
Account fees: None
Outgoing wire transfer fee: $35.00
FDIC-insured: Yes — up to $250,000 per depositor
What you can do with your account: Check your balance, transfer money, schedule recurring deposits, and update your user profile and preferences.
How to apply: You can apply for an account on the Bask Bank website, where you’ll be asked to provide your email address and mobile number.
The potential drawbacks: APY could change at any minute; a relatively high outgoing wire transfer fee. Additionally, Bask Bank does not offer an ATM card or joint accounts.
Ideal candidate for this account: A consumer who intends to save a lot of money — or really anyone with the motivation to let their savings sit and accumulate interest, as at present, this is truly an exceptionally high APY.
Bask Account Holders Can Also Turn Money into Miles
Frequent flyers may already be familiar with Bask Bank’s original offering, the Bask Mileage Savings Account. Designed to be a most perfect fit for travelers, this one-of-a-kind account grants account holders American Airlines AAdvantage® miles in lieu of cash interest — with one AAdvantage® mile awarded for each dollar saved annually. Here’s a rundown of how this account works:
APY: None; the account holder earns AAdvantage® miles instead of cash interest. Bask Bank awards miles equal to the Monthly Mile Award Rate multiplied by the average current balance in your Bask Mileage Savings account for the month, rounded to the nearest whole number. Miles are currently valued at 0.42 cents per mile, or 0.42%. This rate is subject to change at any time.
How to access your miles: Account holders must be AAdvantage® members and provide their account information to Bask Bank. On or before the fifth business day of the month, Bask Bank transfers your AAdvantage® miles accrued in the prior month to your AAdvantage® account.
Reporting miles: Like cash interest, you must report miles earned in your annual tax return. Bask Bank will send a 1099 to both you and the IRS reporting the value of the AAdvantage® miles you received.
Minimum balance to open account: None, but a deposit must be made within 60 days of opening to prevent possible account closure
Closing an account: If the account is closed before or on the last day of a statement cycle, reward miles for that period will be withheld.
Transaction limitations: N/A — but Bask Bank has the right to introduce limits at any time.
Account fees: None
Outgoing wire transfer fee: $35.00
FDIC-insured: Yes — up to $250,000 per depositor
What you can do with your account: Check your balance, transfer money, schedule recurring deposits, and update your user profile and preferences.
How to apply: You can apply for an account on the Bask Bank website, where you’ll be asked to provide your email address and mobile number.
The potential drawbacks: Mileage rate could change at any minute; a relatively high outgoing wire transfer fee. Additionally, Bask Bank does not offer an ATM card or joint accounts.
Ideal candidate for this account: A consumer who is a frequent flyer with American Airlines or planning to become one.
The Bask Mileage Savings Account operates according to the same terms as the Bask Interest Savings Account, with the obvious distinction of awarding AAdvantage® miles instead of cash interest. Users who already have a Bask Mileage Savings Account can easily open a Bask Interest Savings Account and vice versa. It’s quite possible and perhaps even ideal — depending on your savings priorities — to hold both the Mileage Savings Account and the Interest Savings Account at the same time; in that case, you could be accumulating interest savings and travel savings simultaneously, with the option to combine these two accounts and/or move money to and from either account.
About Bask Bank
Launched nationally in 2020, Bask Bank, a division of Texas Capital Bank, is a digital bank that shines thanks to its unique 20-year partnership with American Airlines. Texas Capital Bank has been around since 1998 and has numerous locations throughout the state of Texas. The Bask Interest Savings Account is the second and latest offering from Bask Bank, an institution that has been otherwise known for its Mileage Savings Account.
The Bottom Line
Bask Bank has a rare gem of an offering with its Mileage Savings Account — a product that should be seriously considered by anyone who intends to travel with American Airlines on a semi-frequent basis. But Bask Bank’s Interest Savings Account is just as impressive, given its outstanding 1.61% APY as of June 2022. Having both accounts is a suitable option for those who prefer to manage their affairs online only, and could use both an extra buck and an extra airline mile.
Bask Bank and BankDirect are divisions of Texas Capital Bank, Member FDIC. The sum of your total deposits with (i) Bask Bank; (ii) BankDirect; and (iii) Texas Capital Bank, are insured up to $250,000. Additional coverage may be available depending on how your assets are held.
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