I’ve mentioned on here before that my husband and I each have savings accounts at Bask Bank that earn American Airlines miles instead of interest. Our accounts earn 1.5 AA miles per dollar annually. So for example, an account with $10,000 dollars in it earns 15,000 AA miles annually. We’ve been using AA Web Special Awards a lot recently, even on the last trip I booked for 2023.
Well, another mile-earning opportunity presented itself, and it’s time for us to move some of our money for a bigger payout.
Citi Miles Ahead Savings Account
Last week, I received a mailer from Citi inviting me to open a Citi Miles Ahead Savings Account. After maintaining a deposit for 90 days, the account earns bonus AA miles:
20,000 bonus AA miles for deposits of $10,000-$49,999
40,000 bonus AA miles for deposits of $50,000 to $199,999
50,000 bonus AA miles for deposits of $200,000
Note that the money must be “new” to Citi money, not money moved from another Citi account.
The account has no monthly service fees and earns a “competitive” interest rate that varies based on your balance. Maintaining a $10,000 balance also triggers 25% more miles earned on my Citi/AAdvantage credit card.
The bonus miles post within 90 days after qualified activity. So, worst case, our money is tied up in these accounts for 6 months. $10k in our Bask Bank would earn 7500 miles in 6 months, whereas here it would earn 20k miles plus interest.
I believe this bonus is targeted only for people with a City/AAdvantage card, so I don’t have a public link. In addition to the mailer, I found the offer in my online Citi account attached to my credit card.
My husband has the same offer. We will both move $10k to separate accounts for a total of 40,000 bonus AA miles.
Bottom Line
My husband and I earn the majority of our miles and points through credit card sign-up bonuses. But, when an easy opportunity like this arises, I will move money and keep track of it to earn some extra miles. Easy peasy.
Anyone else opening a Citi Miles Ahead Savings Account?
Author: Nancy
Nancy lives near Dallas, Texas, with her husband and three kids. Her favorite vacations include the beach, cruising and everything Disney.
Has anyone got the 25% bonus miles after the initial lump sum bonus?
Follow up – After multiple calls I have had 2 reps tell me you have to spend 50k to earn the 25% bonus even though the T&C say you earn 25% on the first $50k which to me indicates there is a 12.5k cap. Citi is the absolute worst when it comes to customer service.
this whole blog reading really take all my brain cells. but if its can be possible then i would try this for sure.
After chatting with credit card side of Citi, talking on the phone with multiple people on the banking side, and chatting on Citi Facebook, I still do not have an answer to this question: what formula do they use to determine cash value of the bonus miles for taxation/1099 purposes. We also have Bask and their valuation was in their terms on day one. Nobody at Citi on either side had any idea about even the offer, say nothing of how a valuation is determined. I was told to go to a tax advisor on one call and told to go to AA on another call! Guess I’ll sit this one out as am not impressed with Citi
@Nancy Citi really does make this info impossible to find! I saw on FlyerTalk that someone posted last year they were taxes .0095 per mile, so slightly less than one cent per mile. https://www.flyertalk.com/forum/32993783-post84.html
You say that transferring money to airline programs is “the best way to earn bigger chunks of airline miles”. But what if the cost of the transfer outweighs the value of the miles earned?
@freeflightsforeveryone That’s definitely something to consider. In this case, it looks like the miles will be taxed at just under 1 cent per mile. So $200 in income, ~$60 in taxes. I believe I will get more than $60 use out of the 20k miles.
What a contrast we have here. The $10,000 deposit for 20K miles is a no-brainer. However, the $200,000 for 50K miles is as terrible of a deal as you can find. You are effectively paying 3.65 cents per mile. Not sure who would ever even consider that
@Adam Yes, you’d think they’d offer a lot more miles for $200k deposit. But I don’t have $200k to move anyway. 🙂
Does this account also earn Loyalty Points (like the Bask mileage account)?
@Jim I don’t believe so.
You said “The bonus miles post within 90 days after qualified activity. So, worst case, our money is tied up in these accounts for 6 months…” If the bonus miles post after 90 days, why is your money tied up for 6 months? and what is “qualified activity”?
Thanks
@Patrick The qualified activity is that you must open the account and fund it within 30 days, then keep your money there for 60 more days. So, that’s a total of 90 days max. Then, the fine print says you will get your bonus miles within 90 days after that. Hopefully the miles will be faster than that, but if everything takes the longest amount of time, then it could be 6 months.