Bask Bank may not be the first bank that comes to mind when you think of online banks, but it shouldn’t be ignored. It offers some of the best rewards and APYs compared to many other online banks and has a solid history to back it up.

About Bask Bank

Bask Bank was founded in 1999 as a part of Texas Capital Bank. It was one of the first online banks to hit the market. Today, they are a big hit with their high interest rates and unique rewards, but it may surprise you that they don’t offer checking accounts.

Their mission is to help customers reach their savings and personal goals by partnering with American Airlines and offering clients miles with each dollar they save.

Bask Bank Features

Before jumping into the specific bank accounts Bask Bank offers, let’s look at their features.

High APY

When you think of savings account APYs, you probably think of interest rates that are next to nothing. At Bask Bank, the opposite is true. They pay 5.10% APY. This high rate is unheard of for even the highest-yield savings accounts.

Potential to Earn Airline Miles

If you’re a frequent traveler, you may love the Mileage Savings account that, instead of interest, pays savers in AA miles. You can use the miles in conjunction with other partner programs or miles earned on your AA credit cards.

No Monthly Fees

Monthly maintenance fees are a pain, and they decrease your overall earnings. Fortunately, Bask Bank doesn’t charge monthly maintenance fees, so you don’t have to worry about keeping a certain balance or conducting a minimum number of transactions to avoid the fee.

Accessibility

Since Bask Bank is an online bank, there aren’t any physical branches to visit. You must be comfortable banking online. Their iOS and Google Play apps have great reviews with average rates of 4.6 and 4.5 stars, respectively.

Bask Bank Accounts

Bask Bank is strictly a savings bank, so you won’t find checking accounts or debit cards with any account. But here is what you can find.

Bask Bank Interest Savings Account

The Bask Bank Interest Savings account has one of the best APYs out of any online savings account. You don’t need to hit a minimum balance to earn the 5.10% APY or deal with tiered interest rates at any balance threshold.

You begin earning interest the minute you deposit funds in your Interest Savings account. Bask Bank allows individuals to have up to two individually owned and two jointly owned Interest Savings accounts, and you can link up to two external accounts to transfer funds.

The downside is you cannot deposit cash. They only accept ACH transfers, mobile deposits, and wire transfers.

Bask Bank Mileage Savings Account

The Bask Bank Mileage Savings Account is a variation of your typical savings account. Instead of interest, you earn 2.5 American Airlines AAdvantage® miles for every dollar you save annually.

So, for example, if you deposit $1,000 and don’t deposit any more funds, you’d earn 2,500 miles in 12 months. Of course, the more you save, the more miles you’ll earn. If you were to add $500 recurring monthly deposits into your savings account, you’d have 9,375 miles after 12 months. Bask Bank determines your monthly reward based on your average monthly balance.

This savings account only benefits frequent travelers who strictly fly American Airlines. If you don’t fall into either category, you’re better off earning the higher APY from the Interest Savings account.

Bask Bank Certificates of Deposit (CDs)

Bask Bank also pays attractive APYs on CDs of terms of 6 to 24 months. To open a Bask Bank CD, you must deposit $1,000.

Currently, Bask Bank pays 5.35% on 6-month CDs, 5.4% on 12-month CDs, and 4.5% on 18 and 24-month CDs. The downside is if you withdraw your principal before the CD matures, you’ll pay the following penalties:

• 6 month – 1 year CDs: 90 days of interest
• CDs with a term longer than 12 months: 180 days of interest

Bask Bank CDs automatically renew unless you withdraw the funds or change the term before the CD expires. Bask Bank sends a notification 30 days before the CD matures to allow time for you to decide.

Pricing & Fees

The fee schedule at Bask Bank is one of the easiest to understand because they don’t charge fees. The only fees you’d face are if you withdraw money from your CD before maturity or if you need a wire transfer, which costs $20 for Interest Savings and $35 for Mileage Savings.

Signing up With Bask Bank

You can apply for a Bask Bank account online either on your computer or phone. Fortunately, you can open either of their savings accounts or CDs online.

Simply click on the product you want in their products menu and click ‘Open an Account.’ Like any bank, you must provide your identifying information, including your Social Security number.

They’ll ask you questions about your employment and identity, using third-party verification systems to ensure it’s you.

You must have a valid government-issued ID and a working mobile phone to upload the necessary documents and complete the verification process.

Bask Bank runs promotions periodically. There aren’t any current promotions right now, but they often run opportunities to open a new Mileage Savings account and earn bonus AA miles.

To earn the miles, you must meet the requirements, including being a new (never had an account before) customer. You must also deposit the minimum balance required for the stated period to earn the bonus.

Check back often to see the available Bask Bank promotions.

Security

Bask Bank accounts are FDIC-insured up to $250,000 per depositor. They also use two-factor authentication, customized security alerts, and a secure message portal, which is the safest way to send them messages.

Customer Service & Support

Even though Bask Bank is an online bank, customers get adequate access to customer support representatives Monday – Friday, 7 AM to 7 PM CT, and Saturday, 9 AM to 4 PM.

They encourage you to look for your answers in the mobile app, but if you can’t find what you need, they are available at 833-260-4320.

Pros & Cons of Bask Bank

Here are the main pros and cons we found in our review of Bask Bank.

Alternatives to Bask Bank

Ally Bank

Ally Bank is a popular online bank known for its high yields. They offer more banking products than Bask Bank, including a checking and money market accounts. Its savings account includes savings ‘buckets’ to help prioritize your savings. They also offer options to boost your savings with round-ups, recurring transfers, and ‘surprise savings,’ which is money Ally Bank determines you can afford to save from your checking account.

Capital One 360

Capital One offers multiple bank accounts, not just credit cards. The Capital One 360 account charges no fees, pays high APYs, and doesn’t require a minimum balance. With Cap One, you can create an automatic savings plan, set up a savings account for each financial goal, and take advantage of mobile deposits.

FAQs

Is Bask Bank a Local Bank?

Bask Bank is only an online bank. You must be comfortable banking online or via their mobile app. The account doesn’t include a debit card, so you can’t visit an ATM to conduct your transactions.

How Secure Is Bask Bank for Your Savings?

Bask Bank is FDIC-insured, so if anything happens to it, your accounts are protected up to $250,000 per depositor.

Which Bank Owns Bask Bank?

Texas Capital Bank owns Bask Bank.

The Bottom Line

If you want to earn a high APY on your savings account and keep it somewhere you can’t spend it, Bask Bank is the answer.

Bask Bank has no minimum balance requirements or fees; plus you earn a high APY on all balances. If you regularly transfer funds to the account, you can build a sizable savings account to help you reach your financial goals, and there’s little risk of you spending them.