3 ways to make your money work harder during uncertain times

If you have your money in an account that's not earning significant interest, you could be missing out on valuable returns.

• Inflation spikes and recession concerns are kicking many Americans into savings mode.
• The current rising interest rate environment can give your savings a boost.
• Use the below guide to consider options based on your timeline and starting deposit.

In a year when economic headlines are dominated by egg-price memes and mass layoffs at tech giants once thought to be invincible, it can be hard for the average consumer to know how to handle their money.

Walk on eggshells, or continue to shake off pandemic-era austerity by splurging?

With inflation in the US at around  6% in February, experts are still erring on the side of caution. 

Morgan Gray, SVP, head of the all-digital Bask Bank and consumer segmentation, points to the rare and advantageously high state of interest rates as a reason for consumers to get strategic about saving right now.

"In this high inflationary environment, you want to be earning money wherever you can," Gray said. "If you have your money in an account that's not earning interest, or even if you're only earning the national average rate, you could be missing out on valuable returns."

For example, Bask Bank — an FDIC-insured institution backed by Texas Capital Bank* — offers three account types with unique returns that outperform the national average. The Bask Interest Savings Account and its CD accounts earn competitive Annual Percentage Yields, or APYs, that allow customers to maximize their cash earnings. The bank also offers the one-of-a-kind Mileage Savings Account, giving customers the freedom to travel by earning two American Airlines AAdvantage® miles for every $1 saved annually.

Option 1: For maximum flexibility and healthy return, consider a high-yield savings account

The Bask Bank Interest Savings Account  currently offers an APY of  Bask Bank Interest Savings Account - APY **, many times higher than the national average.

For savers feeling skittish about inflation and possible recession, it makes sense to seek out the highest possible yields while the economy works its way to normalcy.

And from Gray's perspective, a highly competitive interest rate has something to offer savers whether they have a sizable nest egg to grow or are starting small. With 24/7 account access and no fees, Bask Bank makes it easy to build toward your savings goals.

"If you only have $20 to start with, you're still going to earn Bask Bank Interest Savings Account - APY APY, meaning it will grow faster than $20 kept elsewhere," Gray said.

This type of saving is a great option for those wanting to insulate themselves against economic uncertainty, or for savers with short-term goals that can be offset by earning compounding interest, like weddings or home-improvement projects.

"For many savers with a goal on the horizon, it makes sense to open a high-yield savings account and earn returns right up until the event or the time payments are due," Gray said.

Option 2: Consider CDs as a safeguard against rate fluctuations.

With a minimum deposit of only $1,000, Bask Bank's Certificate of Deposit option removes the need for a large deposit to earn high yields.

Besides their low initial deposit requirement, "Our CDs offer customers the ability to lock in your preferred interest rate," Gray said.

In other words, even if interest rates drop over the next year, putting money in a CD locks in the current rate at the time of deposit, so your investment will continue to grow at that rate. Bask Bank offers CDs in term lengths of 6, 12, 18, and 24 months with APYs of up to Bask Bank 1 Year CD - APY ***.

Because they tie up the funds for the length of the term, Gray reminds savers they are less optimized toward short-term goals and more around locking in the stability of an attractively high interest rate.

"It's a great option for someone who has some savings they can afford to put away without accessing for the term of the CD and wants to lock in a great rate for a specific time period," she said.

Option 3: Earn airline miles instead of traditional interest with a Bask Mileage Savings Account. 

Bask Bank also offers a unique way to leverage savings toward future air travel. By partnering with the American Airlines AAdvantage® program, Bask Bank allows depositors to earn two miles for every dollar saved annually**** in their Bask Mileage Savings Account. Account holders are given the opportunity to earn miles by saving, not spending, and there's no limit on the amount of miles that can be earned.

This innovative savings account offers travelers a more effective avenue for racking up miles, than merely buying them directly from the airline. To give an example, if an account holder places $100,000 in a Bask Mileage Savings Account for one year, he or she will accumulate 200,000 AAdvantage® miles.

"It's great to have extra miles on hand, whether you are saving for a specific trip, keeping them in case you need to travel unexpectedly, or even just planning to use them on other aspects of a vacation such as a hotel stay or rental car," Gray said.

She acknowledges the account's exclusivity to American Airlines may not present a match for everyone, but also sees this option as a secondary emergency fund — accessible, fast, and flexible for when you might need to travel unexpectedly.

"Buying a last-minute ticket can be really expensive, but often you can save money by using miles," Gray said. "So, one approach is to think of a Mileage Savings Account as a way to earn extra miles in case you need them for an emergency."

Keep your savings within reach, but out of sight and out of mind

Regardless of account type or product a consumer chooses, Gray maintains that keeping your savings in a separate place from your checking, business, or other bank accounts can be a great tool to help you save more.

It removes the temptation that might come with viewing your savings in the same place or as your spendable balance — especially as your savings account grows over time.

You can access your account at any time from your phone or computer and be assured it's earning rewards for you," Gray said. "But at the same time, you're not seeing it in your day-to-day account and thinking, 'great, I have all this money — I'll spend it now.'"

Find out more about Bask Bank's savings options. 

This post was created by Insider Studios with Bask Bank. 

The views and opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of Texas Capital Bank. 

* Bask Bank is a division of Texas Capital Bank, Member FDIC. The sum of your total deposits with (i) Bask Bank (ii) Texas Capital Bank, are insured up to $250,000 per depositor for each account ownership category.

** Annual Percentage Yield is variable and subject to change at any time. No minimum balance requirement. Must fund within 15 business days of account opening. Bask Interest Savings Accounts Rates effective as of Friday, March 17, 2023:

*** The Annual Percentage Yield is effective as of Monday, March 20, 2023. We will pay this rate and APY through your CD maturity date. Fees could reduce the earnings on your account, and an early withdrawal penalty may be imposed for early withdrawal. If your CD is not funded with at least $1,000 within 10 business days after the date the account is opened, it will automatically be closed.

**** Mile rewards are subject to change at Bask Bank's sole discretion. Please see Terms and Disclosures for details.