Bask Bank Review: High Interest Rates or Airline Miles

GOBankingRates Score

4.8
SCORE
GOBankingRates Best Banks 2023 scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks.
Quick Take: Bask Bank is an online-only bank that offers savings accounts and CDs. It does not offer any other banking products and does not have mobile banking or ATM/debit cards. What it does have is outstanding interest rates on savings.
  • Interest Savings Account
    5.0
  • Miles Savings Account
    4.8
  • CD Account
    5.0
  • Banking Experience
    4.2
How did we calculate this?

Pros

  • Choose interest or miles
  • High interest rate on savings and CDs
  • No minimum balance or fees

Cons

  • No checking accounts
  • No ATM or debit cards

Bask Bank Overview

Bask Bank is an online-only bank that offers savings accounts and CDs. Interest rates are high – the basic savings account pays APY.

Bask Bank accounts are administered by Texas Capital Bank, which is a member of FDIC, so accounts are insured for up to $250,000 per depositor.

GOBankingRates has ranked Bask Bank among the Best Online Banks of 2023 and one of the Best Online and Neobank Savings Accounts of 2023.

Key Features

Here are some of the features that stand out at Bask Bank.

Bask Interest Savings Accounts

Bask Bank has two savings accounts to choose from. The Bask Interest Savings Account earns APY — a remarkable yield for a bank savings account.

The Bask Interest Savings Account has no monthly maintenance fee and no minimum deposit or balance requirements.  It’s a straightforward savings account that pays a really good rate of interest.

Bask Mileage Savings Account

The Bask Mileage Savings Account credits you with two AAdvantage miles for every dollar in your savings account on an annual basis. Miles are accrued daily and credited monthly, based on the average balance in your savings account for the month.

Here’s an example scenario: if you have an average daily balance of $10,000 in January, multiply that by two to get 20,000 annual points. Divide by 365 days in the year, and then multiply by 31 days in January to get 1,698 miles for the month of January. Miles are valued at 42 cents per mile for tax purposes (and yes, they are taxable as interest income), so the value of these miles would be $7.13, but if you use them for flights or other perks from American Airlines, they could be worth more.

To compare, if you chose the Bask Interest Savings Account instead, your $10,000 would earn $405 in a year.

The Bask Mileage Savings Account has no minimum deposit or balance requirement, and no monthly maintenance fees.

CD Accounts

CDs at Bask Bank are available for six months, 12 months, 18 months and 24 months. You must have a $1,000 minimum deposit to open a CD account, and you’ll pay a penalty equal to three months’ interest if you withdraw funds before the CD matures.

Interest rates for Bask Bank CDs are great — a six-month CD pays APY. Lock your money away for a year and you’ll earn APY.

Banking Experience

Bask Bank earns top marks for interest rates — its interest savings account and CD rates are well above average. But it offers only these products, so Bask Bank couldn’t be the sole bank for most people.

Bask Bank does not offer ATM or debit cards, so if you want to access the funds in your savings account, you have to transfer them to an account at another bank. This may be a drawback for some, but others may see the advantage to having to jump through some hoops to get at your money because you may be less likely to take it out.

Bask Bank offers online banking services, but no mobile app. Using online banking, you can check your balance and transfer funds between your Bask Bank accounts, if you have more than one, or between your Bask Bank account and accounts at other banks.

GOBankingRates has ranked Bask Bank among the Best Online Banks of 2023 as well as one of the Best Online and Neobank Savings Accounts of 2023.

Comparable Online Bank Options

If you’re considering moving to an online bank or adding one to your existing banking relationship, you may want to shop around. Here are some others to consider.

Ally Bank

Ally Bank is also an online bank and has checking accounts, credit cards, loans, and investment products in addition to savings accounts and CDs. Ally offers online banking as well as a mobile app. The APY for an Ally savings account is . CD rates are slightly lower at Ally as well, with a six-month certificate paying just APY, and a 12-month paying . There’s no minimum deposit required for CDs.

Marcus by Goldman Sachs

Another online bank, Marcus by Goldman Sachs offers APY on savings accounts, with no minimum and no fees. A 12-month CD pays APY with a $500 minimum deposit. And the bank offers investments, loans, and credit cards, but no checking accounts.

Final Take

Bask Bank is a good place to stash some cash and forget about it. You’ll get a really got interest rate (or miles, if you want to go that route). For some people, the idea of not being able to easily access their savings is a good thing – it may mean that the money stays there longer if it’s that much more difficult to get at it.

Bask Bank FAQ

Here are the answers to some of the most frequently asked questions about Bask Bank.
  • Is Bask Bank a legitimate bank?
    • Yes. Bask Bank is an online-only bank, offering savings accounts and CDs through Texas Capital Bank, which is FDIC-insured.
  • Is Bask Bank a good deal?
    • Bask Bank offers savings interest rates that are higher -- in some cases, a lot higher -- than other online and brick-and-mortar banks. Since they only offer savings accounts and CDs, you'll need another bank for your checking account, credit card, loans, etc.
  • What kind of bank is Bask Bank?
    • Bask Bank is an online-only bank. It offers savings accounts and CDs through Texas Capital Bank, which is a member of FDIC. It also partners with American Airlines to offer AAdvantage airline miles instead of interest to some depositors.
  • How does Bask Bank work?
    • Bask Bank is an online-only bank. It has no physical branches or ATMs and does not offer debit cards or mobile banking. It offers savings accounts and CDs only. To open an account, you will need to transfer money from another bank account to Bask Bank. If you want to take money out, you will need to transfer the money out of Bask to another bank account. Using online banking through Bask Bank, you can transfer funds, check balances, and set up recurring deposits.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Dec. 14, 2022.

To determine rankings for the Best Online Banks, GOBankingRates looked at the following factors across exclusively online banks: (1) total assets as sourced from the FDIC; (2) monthly checking fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (3) savings APY; (4) 1-year CD APY; (5) customer service options and mobile products offered (24/7 customer service, live chat with a human, mobile app and remote check deposit); (6) Bauer rating (out of 5 stars); (7) products/services offered (auto loans, mortgage loans, credit cards, investment services and insurance); and (8) the average mobile app rating between the Android and Apple app stores. Factors (1) and (2) were weighted 0.5 times, and factors (3) and (7) were weighted 2 times. For all savings and checking account data, only the basic accounts/products offered at each institution were analyzed.

To determine rankings for the Best Online Bank and Neobank Savings Accounts, GOBankingRates looked at the following factors from all online banks and neobanks: (1) total assets as sourced from the FDIC; (2) minimum deposit to open an account; (3) monthly savings fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (4) minimum balance needed in account to earn APY; (5) savings APY; and (6) the average mobile app rating between the Android and Apple app stores. All factors were then scored and combined, with the lowest score being best. Factor (1) was weighted 0.5 times, factor (4) was weighed 1.5 times and factor (5) was weighted 3 times. 

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About the Author

Karen Doyle is a personal finance writer with over 20 years’ experience writing about investments, money management and financial planning. Her work has appeared on numerous news and finance websites including GOBankingRates, Yahoo! Finance, MSN, USA Today, CNBC, Equifax.com, and more.
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