What if your savings account helped fund your next family trip instead of just earning a little interest each month?

That’s the idea behind the Bask Bank Mileage Savings Account. Instead of earning interest, you earn American Airlines AAdvantage miles simply by keeping money in your account. For travelers who actively use miles, it can be an easy way to build a balance without spending more on credit cards or flights. I’ve been doing it for about a year now and feel that it works well for me.

Here’s how it works and why it can be a smart move for some travelers, if you have some larger savings balances you can move around a little.

 

How the Bask Bank Mileage Savings Account Works

Opening the account is straightforward. After setting up your Bask Bank Mileage Savings Account, you link it to your American Airlines AAdvantage account.

From there:

• Deposit money into the account

• Maintain your balance like a normal savings account

• Earn miles instead of interest

Currently, the account earns about 1.75 AAdvantage miles per dollar saved per year, calculated using your average daily balance. Miles accumulate each day and are deposited into your AAdvantage account once a month.

For example:

• $10,000 saved for a full year would earn about 17,500 miles

• $25,000 saved could earn about 43,750 miles

There is no cap on how many miles you can earn, which makes the account especially appealing for larger savings balances. I parked a whopping $100,000 in there and earned over 120,000 AA miles—more than enough for a business-class flight to Europe or several domestic flights. 

 

Current Bonus for Sign-Ups

Currently, through May 31st, there is a 15,000-mile bonus signup when you sign up and fund your Mileage Savings Account with $50,000. I realize this is a lot of money, and most people won’t be able to do this, but if you can, it is a nice way to earn even more. Additionally, over a year, that $50,000 will earn you almost 90,000 AA miles.

A Few Things to Consider

There are some tradeoffs to keep in mind.

• Because you earn miles instead of interest, you won’t benefit from interest compounding like you would with a traditional high-yield savings account. Also, Bask Bank reports the value of the miles you earn for tax purposes, so you may receive a tax form at the end of the year. (I’ve found this to be a low amount.)
• Airline miles can change in value over time, so the return depends on how you use them.
• Be sure to do the math and figure out how much money you could make in interest if you saved the same amount in a regular high-yield savings account, as well. If you use miles strategically, you could potentially get more value out of them than you might out of traditional interest earnings, but it’s not a given.

 

Bottom Line

If you’re someone who actively redeems American Airlines miles for travel, earning miles on your savings can be a fun and powerful way to grow your rewards balance. It’s working for me but that doesn’t mean it’s necessarily the right move for you. What are your thoughts on this way to earn more AA miles?