Bask Bank has significantly increased the yield on its Interest Savings Account to 1.5 percent, positioning it as one of the most competitive savings rates currently available in the United States. This move by the online-only bank, a division of Texas Capital Bank, aims to attract more depositors in a fluctuating interest rate environment.
Bask Bank’s Competitive Edge
Bask Bank’s new 1.5 percent APY represents a substantial jump, making it over 20 times the national average savings account interest rate, which currently stands at a mere 0.07 percent as of Bankrate’s June 8 survey. This increase follows recent adjustments by the Federal Reserve, which raised federal funds rates in March and May. Such actions often lead to higher yields on deposit accounts as banks compete for customer funds.
- Record High Yield: The 1.5 percent APY is among the highest offered nationwide.
- No Minimums: The account requires no minimum balance to open, though an initial deposit is needed within 60 days.
- Fee-Free: Bask Bank charges no monthly maintenance fees, enhancing its appeal.
Understanding the Savings Landscape
The national average savings rate remains exceptionally low, highlighting the advantage Bask Bank offers. While yields on savings accounts are typically variable and influenced by Federal Reserve policy, Bask Bank’s aggressive rate positions it favorably. The bank’s commitment to a fee-free structure and no minimum balance requirement has earned its Interest Savings Account a perfect 5-star rating from Bankrate, although its long-term consistency in offering high yields remains to be seen, given its relatively recent introduction in February.
Bask Bank’s Offerings and Background
Bask Bank, launched in 2020, operates exclusively online. It is one of two digital banking divisions under Texas Capital Bank, the other being BankDirect, which provides a broader range of products including checking, money markets, and CDs. Notably, Bask Bank also offers a Mileage Savings Account, which rewards customers with American Airlines miles instead of interest.
