Bask Bank Launches New Online Savings Account Paying 0.60% APY, but There is a Catch

Bask Bank, a division of Texas Capital Bank, has launched a new online savings account. The account, called an Interest Savings Account, is paying 0.60% APY. The rate is clearly among the best online savings rate available at the moment (compare rates here), and is above the 0.50% APY currently offered by BankDirect, which is also a Texas Capital Bank subsidiary.

The catch here is that this account is only available to those customers of Bask Bank who have first opened an account that earns American Airlines AAdvantage® Miles. We’ve written previously about Bask’s primary offer before, most recently last December here.

Bask Mileage Savings Account pays 1 AAdvantage® mile for every dollar on deposit per year. In other words, $250,000 on deposit as Bask for 12 months will earn 250,000 American miles. Anyone who travels by air at all values these miles at well over a penny each and therefore this account is especially compelling as long as rates remain below 1% (and arguably remains compelling even when savings and CD rates are around 2%, as they were when Bask launched in early 2019).

Today, the 0.60% APY rate on its face is compelling, but there are other places where you can this rate or close to this rate, and those who are not interested in Bask Bank’s core mileage earning account should probably seek out one of these accounts. But, for those who recognize the value in AAdvantage® miles and are interested in earning AAdvantage® miles as long as savings rates remain low, Bask’s new Interest Savings Account may represent an interesting development. Bask Bank is now indicating that it will offer a cash interest-earning alternative as rates rise (so you may not need to move accounts when rates eventually go higher) and it is already enabling customers the ability to toggle between American miles and cash interest. And, that just may be enough of an incentive to jump over to earning AAdvantage® miles from Bask Bank as long as savings rates remain so low.