Are you hoping to start travel hacking, but you aren’t into credit cards? Bask Bank offers a savings account that awards savers miles instead of interest. The more you save, the more miles you earn from Bask Bank.Should you switch your savings and start earning miles? We give you the rundown on Bask Bank’s unique twist on a high-yield savings account.See how Bask Bank compares to other banks on our list of high yield savings account.
Bask Bank is an FDIC-insured division of a bank that offers a high-yield savings account with a twist. Instead of offering money as interest, Bask Bank offers airline miles good on American Airlines.You’ll earn one mile per year per dollar you have in the account. For example, if you have $12,000 deposited into the account, you’ll earn 1,000 miles per month.In addition to the typical miles as interest payments, accountholders can also earn 1,000 miles for providing feedback on the account. This is a one-time bonus only.The deposits in Bask Bank are FDIC-insured up to $250,000, and airline miles are deposited directly to your American Airlines miles account.
If you’re someone who has less than $10,000 in savings, Bask Bank is probably not a great bank for you. For example, if you’ve got $5,000, it will take five years to earn enough points to pay for one round-trip domestic flight. With so many possible changes in the next five years, it seems like money would come in more handy than points.By contrast, if you’ve got a ton of money in savings (say $50,000 or more), Bask Bank could provide a lot of value, especially if you want to travel internationally (or even to Hawaii or Alaska). With a $60,000 balance, you can earn a round-trip to Europe in just one year. And you can do that without having to open another credit card.
Over the past two or so years, rates on savings accounts have ever so slowly started to climb upwards, and banks are finally starting to compete for deposits. The miles as interest that Bask Bank is offering are compelling, especially if you highly value travel.In my opinion, people who already fly at least once per year, and have at least $20,000 in savings, could see a lot of value from Bask Bank. Those who fly less frequently, only travel in the lower 48 states, or have less than $20,000 in savings, won’t earn valuable flights fast enough. For people in that camp, a conventional high-yield savings account makes more sense than Bask Bank.