New Bask Bank offer: a simple way to earn 82,500 miles in six months without spending any money

by Gary Lef June 1, 2024

I receive compensation for the content and numerous links on this blog. Citibank is an advertising partner of this site, as are American Express, Chase, Barclays and Capital One. All opinions expressed in this article are my own and have not been reviewed, approved or endorsed by my advertising partners. I don’t write about every credit card available, but instead focus on miles, points, and cash back (and the currencies that can be converted to those same cards). Conditions apply to the offers and benefits listed on this page.

I haven’t written about Bask Bank since last summer, even though it’s one of the best ways to earn miles without actually spending money.

The Bask Mileage Savings Account awards 2.5 American Airlines AAdvantage®️ miles per dollar saved each year. This is a savings account that awards miles instead of cash. This is one of the highest returns possible, and there are some attractive tax reasons to appreciate it as well.

20,000 mile new customer bonus

Right now they have a new customer offer of 20,000 bonus miles for $50,000 in deposits held for 6 months. It is in addition to the current 2.5 miles per dollar saved each year you earn on these funds.

After 6 months with this $50,000 deposit, you will have earned 82,500 miles (62,500 miles plus 20,000 bonus miles). That’s enough for a one-way business class ticket from the US to Australia on Qantas.
Or leave the funds in the account for a year and you will have 145,000 miles. That’s more than enough miles to qualify for a round-trip business class award on Qatar Airways or Etihad between the United States and the Middle East, India or even the Maldives. Round-trip business class between the United States and Africa on Qatar Airways is 150,000 miles.

Or add the 145,000 miles to the 5,000 already in your account and book a round trip First of all class (not even just in business) in Australia.

Here are the key details of the new customer offer:

To benefit from this offer, you must be a first-time Bask Mileage savings account customer, open a Bask Mileage savings account between June 1, 2024 and August 31, 2024, fund your Bask Mileage savings account within 15 business days following initial account opening. and maintain a minimum daily account balance of $50,000 for 180 consecutive days after initial account opening.

When it comes to travel, the cost of US premium cabin awards in Australia has come down a lot in my research.

American Airlines Flagship First Class

Qantas First Class Lounge, Sydney accessible when departing American Airlines First Class

Why it may beat other places to park money

If you value American AAdvantage miles at 1.5 cents each, earning 2.5 miles per dollar saved each year represents a 3.75% return.

However, you must adjust this for taxes. Bask Bank reported the miles I earned for tax purposes at a value of .42 cents each. Assuming this doesn’t change over the next year,

Earning 82,500 miles (worth $1,237.50) and saving $50,000 for 6 months would generate a 1099 tax reporting form showing a value of $346.50.
If you pay taxes on these miles with a hypothetical combined federal and state income tax rate of 47%, you pay $162.86 in taxes. This means a net worth of $1,074.64 after taxes.
Compare that to a hypothetical APY of 5.50%. I don’t know of any savings accounts in the country paying 5.5%. That same $50,000 saved would bring in $1,375, $642.25 in taxes and a net amount of $732.75.
You come out with an advance of more than 46% thanks to this offer over the six-month promotional period!

That’s a lot of numbers to say that this is a really aggressive offer to open an account and hold a large deposit with Bask Bank.

American Airlines to Providenciales, Turks and Caicos Islands

A good place also for small deposits

Even very small deposits are worth it with this account, as there is no minimum balance and consistently earning even a single mile can extend the expiration of your miles.

Texas Capital Bank launched Bask Bank in 2020, offering online savings accounts that earn American Airlines AAdvantage® miles. I like that they have continued to improve the value proposition since then, increasing the original earnings from 1 mile per dollar saved annually to 1.5 miles per dollar, then 2 miles per dollar, and now 2, 5 miles per dollar saved annually. They clearly want this to be a very attractive value proposition.

I have been a customer of Texas Capital Bank since July 2003, when I first opened a checking account with them. I have been with them for over 20 years.

It’s a great way to save money and earn miles. Signing up is free, quick and easy, and earning miles for your savings is a better deal than you’ll find on most savings accounts.

The main way I use my savings account is to put money aside for my annual property taxes. This is one of my biggest expenses each year. This is something most people don’t earn miles for. Bask Bank helps me save funds and earn miles at the same time. This is an account I’ve had for four years, and the current offer is a good time to open one.

Texas Capital Bank d/b/a Texas Capital is a Member FDIC. Bask Bank is a division of Texas Capital Bank.

Mileage rewards are subject to change at the sole discretion of Bask Bank. Please see terms and information for further details.

American Airlines reserves the right to modify the AAdvantage® program and its terms and conditions at any time without notice and to terminate the AAdvantage® program on six months’ notice. Such changes may affect your ability to use any rewards or mileage credits you have accrued. Unless otherwise stated, AAdvantage® miles earned through this promotion/offer do not count toward elite status qualification or AAdvantage® Million Miler qualification.^SM Status. American Airlines is not responsible for the products or services offered by other participating companies. For more details on the AAdvantage® program, visit aa.com/aadvantage.