When it comes to saving money in 2024, Bask Bank stands out with its impressive high-yield savings accounts and certificates of deposit (CDs). With competitive interest rates and a unique mileage-based savings account, Bask Bank is a solid option for those looking to maximize their savings.

However, its limited offerings, including the absence of checking accounts and debit card access, might leave some users wanting more. In this review, we'll explore Bask Bank's features, benefits, pricing, and whether it's the right choice for your financial goals.

What is Bask Bank?

Bask Bank is the online division of Texas Capital Bank, which was launched in 1999. It operates exclusively online, focusing on providing high-yield savings products. Unlike traditional banks with physical branches, Bask Bank's digital-only approach allows it to offer higher interest rates by reducing overhead costs. It primarily features two types of savings accounts: a high-yield interest savings account and a Mileage Savings Account, which rewards users with American Airlines AAdvantage miles instead of cash interest. The bank also offers a small range of CDs with attractive interest rates.

Bask Bank: Features, Benefits, Pricing, and Much More

Bask Bank is a digital-only bank that stands out for offering high-yield savings options with competitive interest rates and minimal fees. It primarily offers two types of savings accounts and certificates of deposit (CDs), catering to those focused on maximizing their savings.

Features

Interest Savings Account: Bask Banks flagship product offers a highly competitive annual percentage yield (APY) of 5.10%. This rate is well above the national average and applies without any minimum balance requirements or monthly maintenance fees.

Mileage Savings Account: This unique account allows you to earn 2.5 American Airlines AAdvantage miles for every dollar saved annually, instead of traditional interest. Its ideal for frequent flyers who value earning travel rewards.

Certificates of Deposit (CDs): Bask Bank provides CDs with terms ranging from 6 to 24 months. The APYs range from 5.35% for a 6-month CD to 5.40% for a 12-month CD, while the 18- and 24-month terms offer slightly lower rates at 4.50%. A $1,000 minimum deposit is required to open a CD.

Benefits

High Returns: Bask Bank offers some of the highest APYs in the market, making it a top choice for those looking to maximize their savings.

No Monthly Fees: Both savings accounts are fee-free, ensuring that hidden costs don't diminish your savings.

Unique Travel Rewards: For frequent American Airlines travelers, the Mileage Savings Account offers a valuable way to earn miles passively.

Simple, Low-Cost Structure: Bask Banks straightforward fee structure and lack of minimum balance requirements make it accessible and easy to use.

Pricing

Bask Bank is known for its minimal fee structure:

No Monthly Maintenance Fees: Neither savings account charges monthly maintenance fees.

Wire Transfer Fees: Outgoing wire transfers from the Interest Savings Account are charged $20, while the Mileage Savings Account charges $35.

CD Early Withdrawal Penalties: Withdrawing funds from a CD before maturity incurs penalties ranging from 90 to 180 days of interest, depending on the term length.

Is Bask Bank Right for You?

Bask Bank is an excellent option for those focused on growing their savings through high-interest accounts or earning travel rewards. Its especially beneficial for frequent American Airlines travelers. However, it lacks broader banking services like checking accounts or loan products, which might be limiting for users looking for a full-service banking experience.

Bask Bank: Pros and Cons

Pros

High-Yield Savings: Bask Bank offers a highly competitive APY of 5.10% on its Interest Savings Account, which is significantly higher than most traditional banks. This makes it an excellent choice for maximizing savings.

No Monthly Fees: The Interest Savings Account and the Mileage Savings Account do not have maintenance fees, allowing you to save without worrying about extra costs.

Mileage Rewards: The Mileage Savings Account offers a unique option for frequent American Airlines travelers, providing 2.5 miles for every dollar saved annually instead of cash interest.

Low Minimums: Both savings accounts have no minimum balance requirements, making them accessible for all types of savers.

Cons

Limited Banking Options: Bask Bank only offers savings accounts and CDs. It lacks essential banking products like checking accounts, debit cards, and loans, limiting its use as a primary bank.

No Physical Branches: Bask is a digital-only bank with no physical locations, which might be a drawback for those who prefer in-person banking services.

Digital Experience Issues: Some users report that Bask Banks mobile app and website can be less intuitive and sometimes difficult to navigate, which can be frustrating for a fully online bank.

CD Withdrawal Penalties: Early withdrawals from Bask Banks CDs come with significant penalties, reducing the flexibility of these accounts.

Bask Bank: Is It Worth It?

Whether Bask Bank is worth it depends on your financial priorities. If your goal is to maximize interest on your savings or earn travel rewards, Bask Bank is a strong contender. Its high APYs are particularly beneficial for those who can maintain substantial balances over time. Additionally, the Mileage Savings Account is perfect for travelers loyal to American Airlines.

However, if you're looking for a full-service bank that offers checking accounts, loans, and a wide range of financial products, Bask Bank's offerings may be too limited.

Conclusion

Bask Bank is a niche player in the banking industry, appealing mainly to those focused on high-yield savings and travel rewards. With no fees, competitive interest rates, and easy online management, its a solid choice for individuals who are comfortable with digital banking.

However, its lack of broader banking services, such as checking accounts and loan options, means it might not be the best fit for everyone. For those purely interested in growing their savings or earning miles, though, Bask Bank could be an excellent choice in 2024.