Bask Bank Interest Savings Account Soars To Rate Leader Level

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Deal Summary: Bask Interest Savings Account, 1.25% APY, no minimum opening deposit.

Availability: Nationwide (internet bank)

Customers of Bask Bank received a cheerful email yesterday.

Good news! You're earning a new, higher rate.

Effective today, the annual percentage yield you are earning on your
Bask Interest Savings Account has been increased from 0.80% to 1.25% APY.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.25%--Bask BankBask Interest Savings Account
Rates as of May 25, 2022.

For the last couple of years, Bask Bank (internet division of Texas Capital Bank) was offering only one savings account, the Bask Mileage Savings Account, which earns a single American Airlines AAdvantage® mile for every dollar saved annually. In October 2021, the Bask Interest Savings Account was launched with a 0.60% APY, but could only be opened by existing Bask Mileage Savings Account holders. In January 2022, the Bask Interest Savings Account was made available to new customers on a nationwide basis.

The nationally available Bask Interest Savings Account earned 0.70% APY on all balances in January, with an additional 10 bps added in the beginning of April. (For several weeks in January and February, Bask Interest Savings Account had the highest rate offered on a nationally available savings account not limited by a small balance cap.) Yesterday’s substantial increase of 45 bps has made the Bask Interest Savings Account a rate leader again. The Bask Interest Savings Account has no minimum opening deposit or stated balance cap.

Thanks to DA reader, evol97, for the Forum post announcing yesterday’s Bask Interest Savings Account rate increase.

The FAQs and the Terms and Disclosures document on Bask Bank’s website are quite good and well worth the read. The following is a portion of the information available.

FAQs

How can I fund my account?

    You have several options to fund your account:

    • You can initiate a transfer from the Bask Bank website or mobile app. This will process as an ACH that withdraws money from your account at another bank and deposits it to your Bask Bank account.
    • You can initiate a Wire Transfer from your account at another bank.
    • You can deposit a check using the Mobile Deposit feature of our mobile app. The check must be made payable to you and must be properly endorsed.

What are my online transfer limits?

    For new customers, online transfers are limited to a maximum of $100,000 per day. New customers can make up to three online transfers per month for a maximum total of $100,000. If you need assistance with transferring larger amounts, please contact Customer Support.

How long does it take for a transfer to process?

    It may take 1 to 3 business days for a transfer to process.

Are there any transfer fees?

    There are no account fees associated with your account with Bask Bank, including transfers to and from.

Beneficiaries

There is little detailed information on the Bask Bank’s website concerning beneficiaries; the following is from a conversation with CSR.

Adding and/or deleting beneficiaries can be done through the Secure Message Center (part of the online banking platform). If adding a beneficiary, you need to provide the beneficiary’s full legal name, date of birth, phone number, email address, and physical address. A Social Security number is not required. Any changes you make will be confirmed by a follow-up email from Bask Bank.

Terms and Disclosures

Compounding and Crediting Frequency – Interest is compounded daily and is credited to the Account on the last day of the statement cycle.

Effect of Closing an Account – If the Account is closed before or on the last day of a statement cycle, accrued interest for that period will not be paid.

Minimum Balance to Open the Account – There is no minimum balance required in order to open a Bask Interest Savings; however, accounts that do not receive an initial deposit within sixty (60) days may be closed.

Transaction Limitations – Transfers from a Bask Interest Savings Account to another Account or to Third Parties by preauthorized, automatic, telephone, or computer transfer are limited to 6 (six) per month. No transfers by Check, draft, debit card, or similar order to Third Parties are permitted.

Outgoing Wire Transfers – $35.00 (may be subject to receiving bank charges).

Fund availability: Readers have complained about the time it takes for funds to become available. According to the Terms and Disclosures:

For ACH Entries originating from Bask Bank through your linked external account, funds will be made available no later than five (5) Business Days after the Settlement Date of such items.

Availability

Headquartered in Dallas, Texas, Bask Bank is the newest online division of Texas Capital Bank. U.S. citizens/resident aliens, 18 years or older, with a valid Social Security number and a government issued ID are eligible to apply for a Bask Interest Savings Account. Bask Bank currently does not offer joint-ownership accounts.

Opening an account must be done online, with an “Open An Account” button located on every page of Bask Bank’s website.

Bank Overview

Bask Bank is a division of Texas Capital Bank and operates under Texas Capital Bank’s FDIC Certificate. As stated on Bask Bank’s website, ”Bask Bank and BankDirect are divisions of Texas Capital Bank. The sum of your total deposits with (i) Bask Bank, (ii) BankDirect, and (iii) Texas Capital Bank are insured up to $250,000. Additional coverage may be available depending on how your assets are held.”

Bask Bank/Texas Capital Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 2.26% (excellent) based on December 31, 2021 data. The Bank has an above average capitalization level (9.66%), the result of holding $34.73 billion in assets with $3.35 billion in equity. Please refer to our financial overview of Bask Bank/Texas Capital Bank (FDIC Certificate # 34383) for more details.

Texas Capital Bank was established in late 1997 as Resource Bank, N.A. Less than two years later, the bank’s first internet division, BankDirect, made its debut in May 1999. Bask Bank was launched in January 2020, offering a savings account that uniquely awarded AAdvantage® miles instead of interest. Texas Capital Bank is currently the sixth largest bank headquartered in Texas and the 65th largest bank in the country, with more than $36.3 billion in assets.

My first blog post about BankDirect was published in 2011 and was a review of its Mileage Checking Account. To quote myself, “BankDirect has been around for a while, but I haven't reviewed it since I've never been a fan of airline miles. I thought it might now be a good deal since interest rates are so low.”

How Bask Interest Savings Compares

When compared to nationally available Savings Accounts tracked by DepositAccounts.com, which do not require direct deposit and are not limited by a small balance cap, Bask Bank’s Bask Interest Savings Account’s APY currently ranks first.

APYAccount NameCredit Union/Bank
1.25%Bask Interest Savings Account (no min/no max)Bask Bank
1.00%Online Savings Account (no min/$5m max)First Foundation Bank
1.00%Bread High-Yield Savings ($100 min/no max)Bread Financial
0.80%Bo Savings (no min/no max)Bank Onward

The above information and rates are accurate as of 5/6/2022.

To search for the best rates, either nationwide or state-specific, please refer to DA’s Savings Account Rates page.

Related Pages: Houston savings accounts, Dallas savings accounts, Austin savings accounts, San Antonio savings accounts, savings accounts, nationwide deals, Internet banks

Comments
milty
  |     |   Comment #1
Interesting and too bad that the bank offers beneficiaries but not joint ownership. Also reviews indicate that it seems to take awhile (don't know how long) for transferred funds to become available.
#15 - This comment has been removed for violating our comment policy.
smihaila
  |     |   Comment #2
Thank you Ken, for posting about this interest-ing find.
Hojo20
  |     |   Comment #3
I'll be opening an account this afternoon. Thanks Ken!
kcfield
  |     |   Comment #4
Bask's slow transfer times and lack of joint account ownership option are deal-breakers for me.
garlen
  |     |   Comment #8
Bask is very slow (funds show up in 2 days, but are "available" in 1 week) when you initiate the pull from Bask (limit is $100k/month). Funds show up in 2 days (identified as "available" when you push from another institution into Bask (can push above that limit).

I know since I did both at the same time and observed that difference. I only push/pull from external now.
enduser
  |     |   Comment #5
"Effect of Closing an Account – If the Account is closed before or on the last day of a statement cycle, accrued interest for that period will not be paid."

Very steep and rigid rule. So this means the interest earned for the entire months is forfeited if the account is closed towards the end of the month.

This is the first to offer 1.25% but it wont be the last. Many more to follow soon, no need to rush.
P_D
  |     |   Comment #6
"Effect of Closing an Account – If the Account is closed before or on the last day of a statement cycle, accrued interest for that period will not be paid."

That rule used to be fairly common years ago but now is extremely rare. It's one of the unexpected ****y traps you have to look out for.

I developed a template with lists of questions to ask for various account management activities, like opening and account, closing an account, adding beneficiaries, etc. Over time I added questions to cover an incredible number of usually unanticipated potential pitfalls that might be encountered such as this one. But by the time I finished asking all the questions to the CSRs I think they flagged me as a troublemaker and I found it pretty much unworkable. To be honest even my own eyes would glaze over by the time I got halfway through the list. And the CSRs got so exasperated that the answers were not reliable anyway.

Bottom line, read everything you can before doing business with an FI, but realize that in the end there is still some risk that something buried in their disclosure will bite you.

I view non-industry-standard rules that are as severe as this one as a red flag. But that doesn't mean the FI is ruled out for a particular purpose that might be useful.
alan1
  |     |   Comment #7
enduser (re your Comment #5) -- You wrote: "this means the interest earned for the entire months is forfeited".

I don't know the length of this bank's statement cycle, so I don't know the number of months of interest you are referring to. Or, I just realized, you may simply have omitted an apostrophe, and mistakenly written "months" as a plural.

In any case, I don't see why you find the bank's policy to be so onerous.

I saw nothing in Ken Tumin's article about needing to maintain a minimum balance, other than the statement that there is "no minimum opening deposit" (but I have lousy vision.) _If_ there is no required minimum balance to maintain the account or avoid fees, I think the whole thing might be a non-issue. If a depositor withdrew all but one dollar near the end of the statement cycle, and then closed out the account with a one dollar balance at the start of the next cycle, what's the big deal? I don't see it. But I may have missed something that you caught. And I see nothing about this policy that deserves the appellation "severe", much less constituting a "red flag", as stated by a subsequent writer in Comment #6.

enduser -- I'd be interested in your thinking on this. I acknowledge that I just might not be understanding something of importance.
RZ
  |     |   Comment #9
Agree, I have dealt with several banks with this policy and have left the minimum balance to avoid the loss of interest. I am keeping my cash liquid considering that Powell is under extreme pressure to accelerate interest rate tightening despite his dovish comments on Wednesday. Obviously the market did not buy it as demonstrated by the massive sell offs on Thursday and Friday.
P_D
  |     |   Comment #10
If you are aware of it, it is likely no big deal and easy to manage. But I think what makes it onerous is that most depositors will not even be aware of it since it is uncommon. And they won't know about it until they lose the interest. And some will never notice at all.

Kudos to Ken for pointing it out.

The reason why policies like this concern me is that the FI has to know that many of their depositors are going to take a loss on this because they are unaware of it. Yet they still keep the policy in place. Makes you wonder what other landmines might be there that you are unaware of.
P_D
  |     |   Comment #11
The way I protect against this is to always leave the minimum balance in an account I plan to close until the new statement cycle starts and interest was credited for the previous cycle regardless of policy.
alan1
  |     |   Comment #12
You describe the bank's policy as "uncommon" (Comment #10) and "extremely rare" (Comment #7). What are your sources for these assertions?

My experience is certainly different, but that is of no significance, statistical or otherwise.

From the website of the Consumer Financial Protection Bureau:

I closed my interest-bearing account, but the bank/credit union did not pay me interest up until the day I withdrew the money. Why?

If you closed the account before the bank or credit union credited the interest, generally the bank or credit union won’t pay that interest. This is known as “forfeiture of interest.”

However, the bank or credit union must disclose this policy in the account agreement you received when you opened the account. To find out your bank or credit union's policy, review your account agreement or ask your bank or credit union.
(italics added)

https://www.consumerfinance.gov/ask-cfpb/i-closed-my-interest-bearing-account-but-the-bankcredit-uni...

I don't know whether the Consumer Financial Protection Bureau's statement is correct. It happens to be congruent with my experience, but so what?

You assert that the Consumer Financial Protection Bureau's statement is incorrect. Source(s), please.
enduser
  |     |   Comment #16
@alan1 "months" was a typo it should be "month" as you pointed out, but I was unable to fix it. So for this particular bank the strategy is to close the account after the interest posts but waiting until the new monthly cycle starts.

As you also stated I did not see a minimum balance requirement. Leaving a $1 if allowed would stop the loss of interest for the entire month and keep the account open.
outtempster
  |     |   Comment #21
your are right on if you knew about it, you can manage. I didn't even know until you mentioned (I haven't opened an account but was going to). If I put a lot of money into the account and was not aware of this rule, I could lose several hundred $ of interested. I think there will be more bank raising rate. just wait a little bit. I have 1% checking account and I can do as many transfer or withdraws, vs saving is only 6 (even thought Fed removed this rule, but many banks still keep it).
deplorable_1
  |     |   Comment #13
Exactly enduser great point no rush. I'm waiting to see which FI will keep up with the FED hikes and maintain a high rate going forward. I think there will be multiple FI's competing for the top yield very soon. I'll save the opening and closing account hassles for some decent bank bonuses as the ROI is much higher.
#14 - This comment has been removed for violating our comment policy.
xer00
  |     |   Comment #19
Tried to open an account and the site said "Sorry, we can't open and account for you at this time". 788 FICO but after reading all the traps this bank has, think they might have done me a favor.
LanceTX
  |     |   Comment #27
They don't do a FICO score credit pull, but they do pull ChexSystems. I'd advise you get a copy of your report to see what may be going on with it.
Joe73106
  |     |   Comment #22
Surprised Bask Bank doesn't require drivers license to open account. Also no questions to verify identity and requirements for password are lax.
Rickny
  |     |   Comment #25
Even though we are in a rising rate environment, this rate can drop at any time.
GreenDream
  |     |   Comment #29
That's pretty much the given at every bank. They almost all have small print to the effect that rates may change at any time.
scanchain
  |     |   Comment #26
For those with the Bask Bank account, were you asked to input the "Secure Access Code" (which you need to obtain by text) with every login? I couldn't find the place to disable this after the first login. Is this how Bask Bank have it setup intentionally?
evol97
  |     |   Comment #28
Yes, I have to enter that "Secure Access Code" each time I login.
Bask Bank Interest Savings Account Is A Rate Leader Again
Deal Summary: Bask Interest Savings Account, 0.80% APY, no minimum opening deposit.

Availability: Nationwide (internet bank)

At the beginning of the year, Bask Bank (internet division of Texas Capital Bank) raised the rate on its nationally available Bask Interest Savings Account to 0.70% APY. (For several weeks in January and February, Bask Interest Savings Account had the highest rate offered on a nationally available savings account not limited by a small balance cap.)

On April 1, Bask Bank added another 10 bps to the Bask Interest Savings Account, upping the...

Continue Reading
Bask Bank Offers Top Savings Account Rate Nationwide
Deal Summary: Bask Interest Savings Account, 0.70% APY, no minimum opening deposit.

Availability: Nationwide (internet bank)

The last few days of any given month are usually quiet rate-wise, so I was pleasantly surprised when Texas-based Bask Bank (internet division of Texas Capital Bank) raised the rate on its nationally available Bask Interest Savings Account to 0.70% APY on all balances. There is no minimum opening deposit or stated balance cap.

For the last couple of years, Bask Bank was offering only one savings account, the Bask Mileage Savings Account,...

Continue Reading


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