Bask Bank [An Honest Review]

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Bask Bank is a relative newcomer, popping onto the banking scene around the start of the pandemic in 2020. Despite its newbie status, it’s got a lot to offer. In this post, we’ll delve into what makes this bank a unique contender, and we’ll be giving our honest thoughts as to whether this bank is worth it for you. Without further ado, let’s jump right into it.

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What is Bask Bank?

Bask Bank is a division of Texas Capital Bank that is completely online, they are headquartered in Dallas, Texas. Texas Capital Bank is an established FDIC-insured, which makes Bask Bank also FDIC-insured.

What makes Bask Bank special?

Bask Bank is a bank that’s geared towards travelers as well as customers that aren’t too fond of having another credit card added to their already plentiful stash of current cards. Furthermore, they reward users for having money rather than spending money. How do they do this, you ask? Through the features, or lack thereof, that they offer.

AAdvantage miles as a reward

If you’re a frequent traveler, you’d probably appreciate the chance to earn miles instead of points, especially when those miles would be worth more than the points in cash. With Bask Bank, you’re in luck. There are a couple of ways to earn miles, referred to as Bonus Miles, through this bank:

Via opening a new account
Via deposits made into an existing account

Lack of a credit card option

This can either be seen as a good thing or a bad thing, depending on whether you want another line of credit to your name or not. However, in tandem with the lack of a credit card option is the fact that users will be rewarded with AA miles for depositing money rather than for the act of spending on credit. This incentivizes the customer to save rather than spend, which is a completely different mindset to take on.

Is Bask Bank worth it?

Now, we’ve touched a bit on the fact that Bask Bank rewards deposits rather than spending on a line of credit. This factors into whether we think Bask Bank is worth it. And it’s this feature alone that we think makes Bask Bank worth it.

Most banks offer credit cards and offer points for spending on that credit card. The business model makes sense. Banks make money off fees and penalties for paying late, paying less than the full balance, etc. However, from a consumer standpoint, it incentivizes you to spend, whether you think so or not. It’s a deep subconscious effect that most people don’t notice and probably never will. In the long run, with a credit card, you end up paying more not only in fees, but in purchases that you would not have made otherwise if you didn’t have a credit card that allows you to.

This is where Bask Bank truly shines. It’s a unique model, at least at the current moment, that forces you as a customer to open a savings account. In exchange, you get rewarded for depositing money into the account, sort of akin to getting paid interest on a savings account. And that reward comes in the form of AA Bonus Miles. You don’t have to worry about getting yourself to spend just to get rewarded.

That in itself is worth more than probably most of the rewards points out there. You’re cultivating a saver’s mindset that’ll save you more money in the long run than any credit card bonus points.

It doesn’t mean you can’t get the best credit card out there in addition to opening a Bask Bank account. In fact, we encourage it for any money that you would otherwise be spending anyways. But with a Bask account, you’ll be rewarded for your savings more so than most savings accounts out there.

How much can you earn for account deposits?

For every dollar you deposit into your account, you get 1.2 AAdvantage miles. To get you started with an influx of miles to your name, Bask Bank does offer the following account opening bonus below.

Bask Bank promos and account bonuses

Here is the current bonus offer.

Bask Bank is offering 4,000, 10,000 or 20,000 American Airlines AAdvantage^® bonus miles to new and existing Bask Mileage Savings Account customers who make new deposits totaling at least $10,000, $25,000 or $50,000 respectively between June 1, 2023, and August 31, 2023, and maintain the new deposit for 180 consecutive calendar days.

What types of accounts do Bask Bank offer?

Bask Bank offers three different accounts, an interest-focused account, a mileage-focused account and a certificate of deposit account.

Bask Interest Savings Account

By opening a Bask Interest Savings account will yield you 3.85% APY which is very high compared to the usual savings accounts.

Bask Mileage Savings Account

For Bask Mileage Savings account users, you can earn 2 miles per dollar every year. For the travel lover, this would be a great option.

Are there any account fees with Bask Bank?

Bask Bank’s savings account has no penalties or fees associated with it. You will not get penalized for not meeting a minimum balance nor pay any maintenance fees. The only required minimum balance is if you wish to qualify for the Loyalty Point Bonus for opening an account. This makes it a great account option for those who are unable to keep a certain balance in the account.

Pros and cons of Bask Bank: The pros

Pros

a bank that’s geared toward travelers
a savings account that has a generous bonus for opening one
rewards for saving/depositing money instead of spending money
a reward of 1.2 AAdvantage miles per dollar deposited
a great starter bank for anyone who doesn’t feel ready for the responsibility of a credit card
no maintenance fees or minimum account balance required

Pros and cons of Bask Bank: The cons

Cons

requires an American Airlines AAdvantage account to qualify
if you don’t use or like American Airlines, even as a frequent traveler, rewards are useless
no credit card option, if that’s what you’re looking for
mileage earnings are reported as income to the IRS, though this is the same for all banking rewards

What makes online-only banks different?

Online-only banks, also known as digital banks or virtual banks, are financial institutions that operate primarily or exclusively online, without brick-and-mortar branches. They offer a range of financial services, such as checking and savings accounts, loans, payment services, and other banking products and services, but with some key differences compared to traditional big banks. Here are some advantages that online-only banks may offer over big banks:

Lower Fees: Online-only banks often have lower fees compared to traditional big banks. They may offer fee-free or low-fee accounts with no monthly maintenance fees, ATM fees, or other transaction fees. This can result in cost savings for customers.
Higher Interest Rates: Online-only banks may offer higher interest rates on savings accounts and other deposit products compared to big banks. This can potentially help customers earn more on their savings and increase their overall returns.
Convenience and Accessibility: Online-only banks offer 24/7 access to banking services through their online and mobile platforms, allowing customers to manage their accounts and conduct transactions at their convenience from anywhere with internet access. This can be especially appealing for customers who prefer the flexibility of managing their finances digitally.
Innovative and User-Friendly Technology: Online-only banks typically prioritize technology and user experience, offering intuitive and user-friendly online and mobile banking platforms. They may also leverage cutting-edge technologies, such as artificial intelligence and machine learning, to provide personalized financial insights, tools, and services to their customers.
Faster and Streamlined Processes: Online-only banks often leverage technology to streamline their processes and offer faster and more efficient services. This can include quicker application processes for loans or credit products, faster transaction processing times, and expedited customer service through online chat or messaging.
Focus on Specialized Services: Some online-only banks may specialize in certain types of financial services, such as business banking, international remittances, or digital wallets, and offer tailored solutions to cater to those specific needs.
Flexibility and Agility: Online-only banks are typically more agile and flexible compared to big banks, allowing them to adapt and respond to customer needs more quickly. They may also be more willing to embrace innovative approaches and partnerships to deliver new products and services to their customers.

In conclusion

There’s a lot to like about Bask Bank. It’s a great starter bank especially if you already travel or are planning to travel frequently. Furthermore, if you aren’t too keen on taking on the responsibility of more credit cards, Bask Bank is a great option, as it is low stress with it’s lack of penalties and fees, coupled with a great AAdvantage mileage rewards program.