Personal Finance News
Bask Bank Adjusts Miles-Earning Savings Account Rate Downward
A bank that allows you to earn airline miles instead of interest is now lowering its rate.
About the changes:
Recently, Bask Bank made an update to its Mileage Savings Account. Previously, customers could earn 2.5 miles for $1 saved annually. This means that someone who held $10,000 in their account would earn a total of 25,000 American Airlines AAdvantage miles over the course of that year (with miles being added monthly). Now, this rate is being lowered to 2 miles per $1 saved annually. With this adjustment, a customer in the same scenario as above would earn 20,000 miles over the year instead.
In an email to customers, the bank said that this change was “based on a range of economic factors and current market conditions.” They added that they “remain dedicated to providing you with competitive offerings so you can continue to maximize your savings.” On that note, Bask’s Interest Savings Account currently earns 4.85% APY. Additionally, Bask debuted its Interest Checking account in August. That product currently offers 2% APY.
About Bask Bank:
Bask Bank launched its unique Mileage Savings Account in 2020. Rather than earning cash interest, the account yields American Airlines AAdvantage miles. Originally, the account earned 1 mile to $1 saved annually. However, this was later adjusted upwards as interest rates began to rise.
Currently, Bask is still offering an introductory bonus for its Mileage Savings Accounts. New customers who open an account, fund it with at least $50,000 within 15 days, and maintain a minimum daily account balance of $50,000 or more for 180 days will earn 10,000 bonus miles. This offer is valid through November 30th, 2024.
My thoughts:
To their credit, Bask Bank held their 1 mile per $1 saved rate throughout the pandemic even as APYs for traditional accounts continued to be slashed. Then, when things turned around, they did a decent job of keeping up and increasing their rate. So, with the Federal Reserve recently cutting rates (and additional cuts expected), it’s understandable that it’s time for them to go back down. Personally, I’m much more offended by that current welcome bonus offer than I am by this rate change!
As for how this adjusted rate compares to other options, it’s a bit complicated. On the whole, I’d say the 4.85% APY Bask offers for its regular Interest Saving accounts is better for most — however, finding a sweet spot such as American Airlines’ web specials could still make the Mileage Savings accounts lucrative for some.
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