You can now only earn 2 American miles per $1 with Bask Bank — what to know about the changes

02.11.2024 - 14:47 / thepointsguy.com

Bask Bank and American Airlines have a 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.

Unfortunately, after raising its AAdvantage mile earning rate on its Mileage Savings Account multiple times in recent years, Bask is now lowering it. As of Nov. 1, the rate is decreasing from 2.5 miles to 2 miles per year for every dollar saved. Depending on how much you keep in a Bask Bank account, this could mean missing out on thousands of AAdvantage miles per year.

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

Related: Best uses of American Airlines AAdvantage miles

Effective Nov. 1, Bask Bank has lowered the earning rate on its Mileage Savings Account from 2.5 miles to 2 miles per dollar saved per year. This new earning rate applies to new and existing Bask Bank accounts. According to a statement by the bank, "The adjustment is based on a range of economic factors and current market conditions."

Mileage Savings Account members won't be thrilled by this news, but still, 2 miles per dollar is nothing to sneeze at. Since TPG's October 2024 valuations peg AAdvantage miles at 1.6 cents each, that's a return of 3.2% (though in practice, this can be much higher or lower depending on how you redeem your AA miles). This rate is well above what you'd get with many savings accounts, like Chase's standard savings account, which offers only a 0.01% annual percentage yield on deposited funds. However, at the time of writing, several high-yield savings accounts offer 4.00% APY or more.

Ultimately, the value you'll get from a Bask Mileage Savings Account — and whether it's the right choice for you — will depend on how you redeem your miles. Do the math and see if earning cash or miles on your savings makes more sense. 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

Bask Bank's Mileage Savings Account is a savings account that earns AAdvantage miles instead of interest on deposited funds. Texas Capital Bank owns and operates the bank, so the Federal Deposit Insurance Corporation insures all funds. 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