- Americans saved significant sums in the early days of the pandemic, given the prevailing uncertainty.
- While things are almost back to normal, consumers are still looking for various options in savings accounts.
- Bask Bank launches a new high-yield savings account with an APY of 0.70%, more than 5 times the national average*.
Like many aspects of daily life over the past two years, the recent history of how Americans save money bears the fingerprints of pandemic-era aberration.
In spring 2020, U.S. consumers invested $2.17 trillion in savings accounts — the biggest mass savings activity since 1981. That pushed the U.S. personal savings rate, which measures savings personal income as a percentage of personal disposable income, to a peak. by 34%.
It has since moved closer to the norm, but with a highly volatile stock market, a pragmatic new breed of savers find themselves looking for a stable and rewarding return.
With additional economic factors like record inflation, coupled with generally low returns from traditional savings accounts, Matt Quale isn’t surprised there’s a lack of clarity about where best to put a nest egg. . Quale is chairman of Bask Bank, a digital-native financial services organization under the Texas Capital Bank umbrella, where he also leads consumer banking, marketing, and customer experience.
From his point of view, high-interest savings opportunities are the key to increasing the personal savings rate.
“Whether people are saving for a specific goal or holding cash in reserve, they want to get value from their assets,” Quale said. “We are committed to providing our customers with options that provide an appropriate return on their savings while providing a top-tier user experience.”
Consumers want high interest and the convenience of bank accounts
Bask Bank has sensed a real need in the market for a very competitive interest rate, which is why it is rolling out one of the best yields in the country: a new savings account product with an APY of 0.70 %. There are also no minimum balance requirements or monthly account fees.
“Simplicity for customers is key,” Quale said. “We give them the ability to sign up in less than five minutes, manage the account from their digital device, and not have to worry about fees eroding their balance.”
The bank’s commitment to a frictionless customer experience is part of its philosophy: Bask is fully digital, so moving at the speed of a fintech startup is the norm. But it also provides the service, support, and stability of Texas Capital Bank, a 22-year-old FDIC-insured institution with multiple full-service branches as well as its own digital presence.
How a new approach to savings accounts took off
Bask Bank’s innovative outlook began with the launch of the Bask Mileage Savings Account, which awards one American Airlines AAdvantage® mile for every dollar saved.
This unique, lifestyle-driven take on “interest” has appealed to consumers even amid a pandemic that has drastically curtailed air travel.
“At the end of the day, savvy savers are playing a long game,” Quale said. “That’s right, whether they’re accumulating their miles balance to travel or enjoying one of the highest interest rates in the country.”
Bask Bank’s interface allows account holders to easily transfer money between the two account types, should they wish to earn American Airlines AAdvantage® miles and take advantage of the new high interest rate product. The same way some Bask Mileage Savings Account users save for a big trip, many Bask Interest Savings Account users track a special expense, like a down payment for a house, wedding, or anything. aspects of a bucket list vacation.
According to Quale, contemporary savings frameworks should provide the flexibility to suit both strategic and habitual savers.
“We want to create financial products that offer flexibility, liquidity and appropriate returns to help clients pursue their goals,” he added. “Our job is to help customers make the most of their savings.”
Learn more about Bask Bank savings account options.
*Average rate as of 01/18/22 according to FDIC.gov. APY is variable and subject to change at any time.
Bask Bank and BankDirect are divisions of Texas Capital Bank, Member FDIC. The sum of your total deposits with (i) Bask Bank; (ii) Bank Direct; and (iii) Texas Capital Bank are insured up to $250,000. Additional coverage may be available depending on how your assets are held.
This post was created by Insider Studios with Bask Bank.