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Burgerwars

Bask Bank Pays You American Airlines Miles on Savings Instead of Interest

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Link: http://www.baskbank.com

 

One mile per year per dollar of average balance, paid out monthly.

The bank values a mile at 0.42 cents, which might be close to what they pay American Airlines for the miles, so 0.42% annual interest on what can only be spent from your AAdvantage account. The bank reports that to the IRS as income so also you get a 1099 each year. There's also a new account opening bonus (bonus miles). Not that much when compared to some credit cards.

I would avoid it. Whatever you think airlines miles are worth (the airlines can change their reward system at any time) you're better off just saving elsewhere. I've earned and redeemed hundreds of thousands of American Airlines miles. The program isn't that great. From my own experience, American Airlines miles are worth about a penny when redeeming them for travel. It shouldn't be difficult to find a 1.5% rate somewhere else today. While small, it beats 0.42% that you're still taxed on. Anyway, all these amounts are below the inflation rate, so you're losing no matter what.

 

Edited by Burgerwars

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On 11/28/2019 at 10:14 AM, Burgerwars said:

Link: http://www.baskbank.com

 

One mile per year per dollar of average balance, paid out monthly.

The bank values a mile at 0.42 cents, which might be close to what they pay American Airlines for the miles, so 0.42% annual interest on what can only be spent from your AAdvantage account.

 

Agreed. Not Worth It.

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