Bask Bank Is A Very Compelling Option For Anyone Looking to Travel in the Post-COVID-19 World
Image Copyright: KJRH

Bask Bank Is A Very Compelling Option For Anyone Looking to Travel in the Post-COVID-19 World

Rate information contained on this page may have changed. Please find latest savings rates.

We are still in the midst of an horrific pandemic but we have vaccines going in arms now and that is a good time to look at how and when you are going to travel when this pandemic ends and it becomes easier to do so.

I last wrote in some detail about Bask Bank's proposition in February, having first written about it in December 2019.

I found Bask Bank very compelling when it was launched by Texas Capital Bank back then. It provided a chance to earn lots of American Airlines AAdvantage® miles instead of cash. Since I frequently have extracted 5 to 6 cents in value per mile when redeeming AAdvantage® miles for tickets to Hawaii or Europe, I advised folks to consider seriously stocking up on this AAdvantage currency with rates so low.

The comments to these two articles are full of analyses by readers comparing interest income with miles, both before and after considering tax consequences (Bask Bank will send you a 1099 that reports all miles earned at 0.42 cents per mile). While I found Bask Bank to be instantly compelling since I value AAdvantage® miles so highly and did not view a detailed pricing mechanism, these readers’ analyses showed that in many scenarios they were effectively purchasing AAdvantage® miles for under a cent a piece when compared to the prevailing interest rates at the time.

Since those articles were written, we went through a period where nobody was thinking about traveling or earning airline miles. But, as we come out of that period, it is clear that American is going to survive and AAdvantage® miles will again have value to those who want and need to travel by air.

At the same time, interest rates have come down dramatically and they aren’t about to rise any time soon. While the small promotions that Bask Bank offered earlier in the year are largely expired (you will still earn 1,000 AAdvantage® miles for a new account with over $5,000), Bask Bank is still offering 1 point per dollar on deposits annually. Since the best online savings rate is now 0.75% APY and most of the top online one-year CD rates are below that level (compare online CD rates here), those who crunch numbers will find that you can now effectively buy (or earn) AAdvantage® miles at well under 1 penny a point.

And, for anyone who travels or is familiar with the American AAdvantage® program, that is a no-brainer.

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to bank transparency and the climate crisis. Since co-founding BestCashCow in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.

Your code to embed this article on your website* :

*You are allowed to change only styles on the code of this iframe.



  • WD Jackson

    December 28, 2020

    OK, Anybody know how to turn AA miles into cash or gift cards?

  • html5

    January 25, 2021

    Bask Bank is a very attractive option for anyone, thanks for your sharing!

  • Elaria C

    April 06, 2021

    Love, love, love Bask Bank (just a customer, not a paid promoter). Since I get redemptions on American's program over 1 cent a point, I am easily more than I could possibly earn anywhere else. My pet peeve is that the miles should appear faster in my American account. It currently takes about 6-8 days and I cannot book my trips home to Italy until the miles are there and American does not extend credit. I have a feeling this is a bottleneck on American's part, not Bask's.

  • «
  • Page 1 of 1
  • »
Add your Comment

or use your BestCashCow account