With so many savings options, it’s hard to know which one to pick—especially in a low-interest environment. This is where having goal-specific savings accounts can come in handy. These can include a high-yield savings account for higher rates of return, a money market account for long-term savings, and an awards-focused account to help you build up miles for future travel.
Bask Bank recently came out with this type of savings account, and it could significantly change the way you think of saving for travel. Here’s what you need to know about Bask Bank’s new savings account.
Travel Rewards That Could Outpace Interest
Offering a unique type of return, the Bask Savings Account awards savers with American Airlines AAdvantage® miles rather than interest. As a result, savers can earn one AAdvantage® mile for every dollar they save annually, and that can translate into big travel awards over the course of a year.
As an added bonus, Bask Bank is currently offering another benefit through Aug. 31, 2022. If you deposit and maintain a minimum daily account balance of $5,000 for 90 consecutive days out of the first 120 days following the initial account opening, you’ll earn 1,000 bonus AAdvantage® miles. This is a great way to kick off your savings, and it can help you quickly earn miles for a future trip.
Since miles are deposited monthly, having a Bask Savings Account means your miles never expire. You’ll be able to plan a trip whenever global circumstances allow for it, without having to worry about what will happen to the miles you’ve earned.
The Ability to Overcome a Low-Interest Environment
Interest rates have dropped significantly over the last few years but have bounced higher somewhat thanks to the Federal Reserve hiking interest rates to combat inflation in 2022. Interest rates on traditional savings accounts are still historically low, with the standard rate at 0.10% APY. This has affected both traditional savings accounts and savings vehicles such as CDs, making an awards-based account a better option for many savers.
The industry average annual percentage yield of 0.10% is based on the FDIC calculated national rate effective July 2022.
To put this into perspective, if you were to have $60,000 earning the industry average of 0.10% APY in a traditional savings account, you would earn $60 over the course of one year. By comparison, in a Bask Savings Account, that same $60,000 would earn 60,000 AAdvantage® miles over the same time period (before factoring in any bonus offers). That translates into a much higher rate of return, making it easy to save on travel and to plan trips you may not otherwise have considered.
The Flexibility to Make Your Savings Fit Your Lifestyle
In addition to helping savers earn AAdvantage® miles, the Bask Savings Account offers a unique way to upgrade your travel. This can be a great option for those looking to supplement their travel budgets and make their travel dreams a reality once current global circumstances allow for it. By offering a new way to maximize savings, Bask Bank is a great option for those looking for a new way to save that fits their lifestyle.
With different types of savings accounts becoming more popular, being able to have goal-specific accounts can help you meet multiple goals at once while making saving a more rewarding experience. If you’re looking to maximize your savings while planning your next adventure, a Bask Savings Account could be right for you.
- All Bonus Award offers are valid through Aug. 31, 2022. Terms and Conditions apply.
- AAdvantage® bonus miles are awarded within ten business days upon meeting offer qualifications and may take 6-8 weeks to post to your AAdvantage® account.
- The value of this offer will be reported to the IRS, and the recipient is responsible for any federal, state, or local taxes on this offer.
- Bask Bank and BankDirect are divisions of Texas Capital Bank, N.A. Member FDIC. The sum of your total deposits with (i) Bask Bank; (ii) BankDirect; and (iii) Texas Capital Bank, N.A. are insured for up to $250,000. Additional coverage may be available depending on how your assets are held.