SAT Lawyer

Yes. Confirmed. Too bad!

WannaTheater

I spent some time running numbers yesterday, and I'm in agreement. Factoring in taxes, opportunity cost, redemption CPM value, etc., in each scenario reviewed, I would be "paying" more for the BASK miles than they would actually be worth while redeeming for travel. (I was only looking at AA-operated itineraries, not partners).

libralibra

For a 25000 mile award ticket, you're paying $425 (plus TSA fees) if your combined tax bracket is 20%, or $345 if your bracket is 40%. When the interest rate goes up to 2.5%, your cost is even higher.

rate | 2.02% | 2.50%
15% | $445 | $547
20% | $425 | $521
25% | $405 | $495
30% | $385 | $469
35% | $365 | $443
40% | $345 | $417

WannaTheater

*deleted

libralibra

Bask raised it to 1.2mi/$/yr now, so the new table is:

Imputed cost of 25k miles at different tax brackets and interest rates:
rate | 2.02% | 2.50%
15% | $373 | $458
20% | $358 | $438
25% | $342 | $417
30% | $326 | $396
35% | $310 | $375
40% | $295 | $355

Dr Jabadski

With this recent change, Bask is returning to the original BankDirect (miles) earning rate (of 10% of average monthly balance). Slightly different way to do the calculation, end result is the same.

BREAK

I’ve returned to the side of the coin which favors miles earning. The ticket I referred to above, for travel in September 2021, was subsequently cancelled. I’m ticketed to make the same flights this September: 335,000 miles when booked, 360,000 now, or $13,400. Miles cost has increased by 25%-33%, cash cost has increased by over 100%.

(I’m not debating the “would you buy the ticket for cash if not using miles” theory. Just pointing out that in the past 1-2 years the value of a mile has changed, regardless of how one values miles. No, I’d never spend $13,000 for an airline ticket, I’d rather risk a DVT and a week of back pain due to an economy seat for 12 hours. Precisely why I’m a saver of miles vice “earn and burn” which is also an entirely different discussion.)

josephstern

These guys are killing it! Now 2.20%.

redtop43

They do seem to be the industry leader in savings account interest rates.

josephstern

Makes it easy on my - I was chasing rates for a while which was getting painful. If they can stay in the lead, I can leave my cash there and be done.

mia

CFG Community Bank offers a higher rate (2.55%), but it appears this has created a problem: Due to volume – effective 8/11 we have temporarily suspended online account applications. All applications submitted prior to 8/11 will be processed normally, but may experience some delays. The system will be back up shortly. We apologize for any inconvenience. For any questions, please email [email protected].


This week's email titled We’ve Updated our Account Agreement, Terms & Disclosures links to a document with new terms for Certificates of Deposit which Bask Bank does not currently offer. Bank Direct did offer both Mileage and money CD's, and I expect this means that Bask will soon do the same.

Dr Jabadski

That would be helpful in that it would allow more options. BD Mileage CDs (6, 12 or 24 month) had lower overall miles earning rate (than checking or MM savings accounts) but all the miles were posted upfront on the day the CD was opened (and those CDs had strict and steep early closure penalties).

Those upfront miles were particularly helpful in my achieving AA lifetime status 11 years ago, when I’d only flown on AA once or twice in the prior 30 years and UA was my preferred BIS airline. (When I got to 2M AA miles, fewer than 5,000 were BIS.) Nowadays AA is my most common BIS airline, biz class lay-flat for all transcon and international flights, using AA miles earned mainly from BD and Bask along with a bunch of CC SUBs. UA nowadays only to the extent of using AmEx Airline Fee Credits TB purchases .

Oh yeah, love the BD and Bask enabled AA JFK-EGE direct flight (which can be very expensive) in the winter instead of UA connecting in DEN or ORD, fewer weather delays, less chance of lost luggage/skis/ski boots. And of course now that I’m no longer chasing status (and quit smoking 20 years ago ) direct flights are always preferred to connecting flights.

To paraphrase “the immortal” Chico Escuela (and appreciate the alliteration) “Thank you berry much. BD and Bask Bank been berry, berry good to me. Thank you!” (Obviously hope this link and quote don't violate any FT rules.)

libralibra

Looks like they upped the apy to 2.53%, so I think I'm finally moving over.

josephstern

Very nice. I haven't received an email from them, but I do see 2.5% listed in my account.

rrgg

For anyone who has a BankDirect checking account, I recommend you end any recurring payments before you are moved to Texas Capital Bank. Then set up them again after the move. Maybe it won't matter, but in my case I was moved early and these caused a small problem.

swag

The promise was that bill pay would migrate seamlessly. Can you elaborate what the issue you had was?

BankDirect currently redirects me to secure.texascapitalbank.com/BankDirect; that site is showing me "Between Wednesday, September 21, 2022 and Friday, September 23, 2022, we will be transitioning you to Texas Capital Bank’s online banking experience. Beginning at 7 a.m. CT on September 21, your accounts will be temporarily inaccessible as we complete the migration process. On September 23, customers navigating to bankdirect.com will be redirected to texascapitalbank.com, where you can access your accounts with your existing BankDirect credentials."

My one monthly scheduled bill pay goes out on the 22nd of the month, so I'd rather not delete and re-add around those dates.