Bask Bank Interest Savings Account Rate Shoots Upward

POSTED ON BY

Deal Summary: Bask Interest Savings Account, 3.60% APY, no minimum opening deposit, must be funded within 60 days.

Availability: Nationwide (internet bank)

Five months ago, Texas-based Bask Bank offered a post-pandemic first: a nationally available savings account earning 1.50% APY. The Bask Interest Savings Account achieved another milestone yesterday when it became the first nationally available savings account offering 3.60% APY in more than 12 years. Following yesterday’s 75-bp Fed rate hike, it’s likely other savings account APYs will be shooting upward shortly. (The APY of one money market account has already surpassed 3.60% - see comparison table below.) The Bask Interest Savings Account has no minimum opening deposit or stated balance cap.

APYMINMAXINSTITUTIONPRODUCTDETAILS
4.25%--Bask BankBask Interest Savings Account
Rates as of February 4, 2023.

A Little History

For the last couple of years, Bask Bank (internet division of Texas Capital Bank) offered only one savings account, the Bask Mileage Savings Account, which earned 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 10 bps added in the beginning of April and an additional 45 bps added in May. Since mid-June, there have been eight rate increases (including the 55 bps added this week), adding a total of 235 bps.

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 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.
    • You can initiate a Wire Transfer from your account at another bank.

What are my online transfer limits?

    New Customer online transfers are limited to a maximum of:

    • $100,000 per transaction
    • $100,000 per day
    • $150,000 per month

      Established Customer online transfers are limited to a maximum of:

      • $150,000 per transaction
      • $250,000 per day
      • $300,000 per month

      Customers can make up to six online transfers per month for a maximum total of $150,000 (new) and $300,000 (established).

      These limits are only applicable to transfers originated from your Bask Bank online banking. Transfers that originate from another financial institution are not subject to the same limitations.

    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

The FAQs expanded in July and now include information about beneficiaries.

How can I add or change beneficiaries?

    You can add up to five beneficiaries through your online banking. […] To add a beneficiary, you will need their 1-Full Legal Name of individual(s), 2-Date of Birth, and 3-Social Security Number. Please note that all beneficiaries added will have equal allocations and cannot be contingent beneficiaries at this time.

A Forum post initiated by DA reader, midas89, provides more information about beneficiaries, including how the number of designated beneficiaries can affect FDIC insurance.

The FDIC will increase your insurance as long as you add two or more people to the account that will receive the money in the event you die. Do not do two separate accounts. Just have 1 account, and add the beneficiaries. As you know, if it is you payable on death to 2 people, your FDIC insurance will be $500,000.

This Forum post is well worth the read, complete with easily understandable explanations and examples. Many thanks to midas89 and the many other DA readers who participated in this Bask Bank Forum post.

For more details on increasing FDIC coverage with beneficiaries, please refer to my post Maximizing Your FDIC Coverage with Beneficiaries.

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, 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.

According to the FAQs, Bask Bank “will soon be offering joint-ownership accounts with right of survivorship.”

Opening a Bask Interest Savings 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 1.64% (excellent) based on June 30, 2022 data. The Bank has an above average capitalization level (10.16%), the result of holding $32.33 billion in assets with $3.28 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 68th largest bank in the country, with assets in excess of $32 billion and nearly 49,000 customer accounts.

My first blog post about BankDirect was published in 2011 and was a review of its Mileage Checking Account. Texas Capital Bank has retired BankDirect, as explained by a notice at the BankDirect website:

We wish to inform you that effective Monday, July 25, 2022, we will be retiring the BankDirect brand and transitioning all open accounts to BankDirect’s parent company, Texas Capital Bank.

How the Bask Interest Savings Account Compares

When compared to nationally available Money Market Accounts and Savings Accounts tracked by DepositAccounts.com, that do not require large balances or direct deposit, and do not have small balance caps, the Bask Bank Bask Interest Savings Account APY currently ranks second.

The above information and rates are accurate as of 11/3/2022.

To look for the best rates on liquid bank accounts, both nationwide and state specific, please refer to our Money Market Accounts Table and Savings Accounts Table.

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

Comments
bronzehawk
  |     |   Comment #1
Currently spouse and I have individual accounts at Bask, designating each other as beneficiary as joint accounts not available. However as per their FAQs : " We will soon be offering joint-ownership accounts with right of survivorship. Each joint owner will have complete control over all funds in the account. If one joint owner dies, account ownership automatically transfers to the surviving joint owners."
Mikey1
  |     |   Comment #2
Very clever how Bask chose 3.6% in order to be just a hair above the 3.5% others offer. So should you open an account? Of course not! My message has been consistent for months: send your money to the Treasury short term. You’ll earn a slightly higher 3.68% for 4 weeks, then revisit the issue this time next month. I chose an 8 week bill paying 3.958% because during the next two months I have prior Treasury purchases maturing almost every week. You don’t need to rate hop with the banks (and burn Chex/credit pulls) until Treasury rates begin to decline!
rockies
  |     |   Comment #3
@Mikey1
You were my inspiration. Now the happy owner of 4-week and 8-week laddered T-bills. The deciding factors for me were taxable equivalent yield of Treasurys, no more new credit union and bank applications, no ChexSystems/credit pulls, direct obligation of the Treasury, ease of acquisition, and liquidity if needed for unanticipated emergency or investment. I even threw in a couple of 13-week and 17-week bills for more yield while staying short term. Thanks for your consistent message!
Mikey1
  |     |   Comment #4
I appreciate the appreciation! Part of my daily routine has become watching Treasury yields. I don’t focus on anything longer than 52 weeks because I feel even those won’t be of interest UNTIL rate increases subside. At that point be prepared to act quickly because the ride down will be much faster and steeper than the ascent. A recent 52 week bill yielded 4.73% which sounds impressive except we’re not at the peak yet. So it’s reasonable to focus on shorter terms which *should* be in the 4’s themselves soon. I’d hate to be locked in to 4.73% for a whole year if the rate then rises to over 5% or higher in the very near future. Stay relatively short term and watchful!
Striker
  |     |   Comment #5
Mickey1 and rockies,
It's always an advantage to not open yet another account. Are you purchasing through a Treasury Direct account ? Or do you purchase through a brokerage account ?
Mikey1
  |     |   Comment #6
Striker, I have a Treasury Direct account which keeps everything neat and organized. It’s helpful to have that account open anyway for Ibond purchases which I started last year. One note which may be helpful: funds from maturing Treasuries will hit your bank account before any corresponding debits for purchases. So as long as you stay within 4-8-17 weeks (which debit on Tuesdays) OR 13-26-52 weeks (which debit on Thursdays) you can easily mix and match within those groupings. The exception is when you change categories: I had a 26 week bill which matured today. Those funds paid out late yesterday. But I had them go to sit and stay in my bank (paying around 3%) because my next purchase is a 17 week bill next Tuesday. So, I’ll simply let the funds rest for the weekend and then get pulled early Tuesday morning.
Striker
  |     |   Comment #9
thanks for the feedback !
rockies
  |     |   Comment #8
@Striker
I am using an existing brokerage account.  

I should also mention I am not abandoning savings/mm accounts.  I spent a lot of time and effort opening accounts earlier this year with the rate leaders.   So, I will be keeping these accounts open with small deposit amounts and, if they ever surpass the after tax yield of short term Treasurys, I will move back.  Just trying to optimize my return in the short term.
Striker
  |     |   Comment #10
thank you for the feedback !
Mikey1
  |     |   Comment #11
Absolutely keep bank accounts open with small amounts rather than closing them. You never know who might surprise: this morning an email alerted me that my Patriot account with an insignificant balance got a raise to 3.3% - and although that’s still below Treasury rates I’ll add a bit of funding to reward them for the increase.
Hooked
  |     |   Comment #12
@Striker - I opened a Fidelity account last year because they offered a $100 bonus for depositing just $50. Unsure if it’s okay to include the link here but the offer is still valid at https://www.fidelity.com/go/starter-pack. I am starting to purchase T-bills using Fidelity.
Shugm3
  |     |   Comment #16
In Jan 2023 are you still investing in short term t-bills?
Human
  |     |   Comment #7
Bask Bank has Endangered My Security By Sharing The Government Protected Private Information With Chex Systems. This irresponsible and horrible bank shared my private information that is protected by government with Chex Systems and hence has endangered my security. Then they want me to contact Chex Systems to provide additional private information to find out why my application was denied. I have filed a complaint and I'll be updating this information later.
planxy
  |     |   Comment #15
CHEX has less of your personal information than the 3 major credit bureaus. My CHEX has 4 p. of financial data on me, the credit bureaus run about 10pp. .
racecar
  |     |   Comment #13
Question: With Bask, how many external accounts can you link to it? Just one, or at least 2 or 3?
rockies
  |     |   Comment #14
@racecar
Don't hold me to it, but I think they allow up to 5 linked external accounts. I only used a couple.

Also, FYI, for outgoing transfers from Bask to a linked external bank, I found them to be lightning fast. As an example, I requested a link just past midnight one evening, test deposits were in my external bank by afternoon the same day, I verified test deposits later that afternoon and immediately requested a transfer to the external bank. Transfer processed later that same evening and funds showed up in my external bank account the next day.
Bask Bank Interest Savings Account Is New Rate Leader
Deal Summary: Bask Interest Savings Account, 2.02% APY, no minimum opening deposit, must be funded within 60 days.

Availability: Nationwide (internet bank)

The Bask Bank June blog post led with “It’s a post-pandemic first: 1.50% APY on a nationally available savings account.” Five weeks later, that lede is certainly out-of-date: there have been a lot of changes in savings account rates peloton since mid-June, with a handful of banks contending for the top APY. As of yesterday, Bask Bank is again the rate leader, offering 2.02% APY...

Continue Reading
Bask Bank Interest Savings Account Rate Jumps To New Heights
Deal Summary: Bask Interest Savings Account, 1.50% APY, no minimum opening deposit.

Availability: Nationwide (internet bank)

It’s a post-pandemic first: 1.50% APY on a nationally available savings account.

Texas-based Bask Bank added 25 bps to its Bask Interest Savings Account yesterday, boosting the rate to 1.50% APY. The Bask Interest Savings Account has no minimum opening deposit or stated balance cap.

For the last couple of years, Bask Bank (internet division of Texas Capital Bank) offered only one savings account, the Bask Mileage Savings Account, which earned a...

Continue Reading
Bask Bank Interest Savings Account Soars To Rate Leader Level
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.

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....

Continue Reading
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


The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.