Bask Bank lowers mileage earnings rate amid economic shifts

The ultimate benefit of Bask Bank's Mileage Savings Account depends on how users redeem their earned miles. It's advisable for savers to evaluate whether earning cash or miles aligns better with their financial goals and consider diversifying between Bask's account and traditional savings options.

The Mileage Savings Account is operated by Texas Capital Bank and insured by the Federal Deposit Insurance Corporation (FDIC). It charges no monthly fees regardless of deposit amounts. Miles are accrued daily and deposited into AAdvantage accounts monthly based on average balances.

For instance, maintaining a $50,000 balance over a year could yield 100,000 AAdvantage miles under the new rate — enough for significant travel rewards like business-class flights to Europe or first-class trips from Los Angeles to Japan.

New customers can also take advantage of promotional bonuses; opening an account by November 30 and meeting specific criteria could result in an additional 10,000 bonus miles.

It's important for potential users to note that these miles are considered taxable income. As stated by Bask Bank: "AAdvantage miles awarded by Bask Bank for maintaining a deposit balance are viewed as interest income," necessitating reporting via IRS Form 1099.

While this change may affect some account holders' strategies, those interested in leveraging their savings for travel benefits may still find value in Bask Bank's offering.