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Bread Savings Account Basics
High-Yield Savings
The Bread Savings High-Yield Savings Account pays 5.15% APY. This is far greater than the national average savings rate of 0.45% as of May 2024, according to FDIC data. Interest is compounded daily and credited monthly for this online account.
To open an account, you’ll need to deposit a minimum of $100, but there’s no minimum balance requirement to maintain the account and earn interest. This account has no monthly maintenance fee and waives most common banking fees. However, you’ll pay $25 per outgoing wire transfer, $15 per official check request and $5 each time you request a paper statement.
To take cash out, you must transfer money to a linked account. Bread Savings doesn’t offer ATM cards, debit cards or checks for its account, which is true of most savings products. You can add funds via mobile check deposit or ACH transfer.
All in all, this is one of the best high-yield savings accounts due to its low minimums, lack of fees and high APY on any balance.
CDs
Bread Savings offers five CDs with terms from one to five years. To open a CD, you must make a minimum deposit of $1,500. Earned interest is compounded daily and credited monthly to your account.
Here are the rates for Bread Savings Certificate of Deposit:
| CD Term | APY | Minimum Deposit |
|---|---|---|
1 Year | 5.25% | $1,500 |
2 Years | 4.65% | $1,500 |
3 Years | 4.25% | $1,500 |
4 Years | 4.15% | $1,500 |
5 Years | 4.15% | $1,500 |
Bread Savings CD rates are usually competitive with the best CD rates for the few terms this platform offers.
The APY assumes that all interest remains on deposit until the CD maturity date. However, you can opt to have interest paid out monthly to a Bread Savings or other verified savings account.
Bread Savings will notify you when your CD is approaching maturity. Once your CD reaches maturity, you’ll have a 10-day grace period to withdraw funds without penalty. If you do nothing at maturity, your CD will automatically renew for the same term but at the current interest rate.
You’ll be charged an early withdrawal penalty if you withdraw your funds before the CD maturity date. The penalty for terms shorter than one year is 90 days of simple interest. For CD terms of one year to three years, the penalty is 180 days of simple interest. For CD terms of four years or more, the penalty is 365 days of simple interest. While you can’t withdraw your deposit or principal without penalty, you can withdraw interest. To pull your earnings out rather than allow them to compound, you can reach out to customer support to set up monthly interest payments.
As with the Bread Savings high-yield savings account, there’s no charge for ACH and incoming wire transfers.
Other Bread Savings Products and Services
Bread Savings is a product of Comenity Capital Bank, a subsidiary of the financial services company Bread Financial. If Bread Savings customers want to expand beyond CDs and high-yield savings, they can access several other products from Bread Financial.
Bread Financial Credit Cards
Bread Financial offers two of its own rewards credit cards:
- Bread Cashback™ American Express® Credit Card*: This no-fee card pays 2% unlimited cash back on everyday purchases anywhere you use it. It has no foreign transaction fees, either. Plus, it comes with several perks you typically get with an American Express credit card, including ID theft insurance, dining discounts and purchase protection.
- The Bread Rewards™ American Express® Credit*: This invitation-only card doesn’t charge an annual fee or foreign transaction fees. It pays 2% unlimited cash back on everyday purchases. Cardholders can earn 25% more points per billing cycle by making 20 or more purchases with this card. This card includes extra perks from American Express, including Booking.com discounts and travel accident insurance.
Additionally, Bread Financial partners with other companies, such as the NFL, Ulta Beauty and Victoria’s Secret, to provide branded credit cards.
Personal Loans
Bread Financial offers invitation-only personal loans known as Bread Loans. These are available for up to $35,000 with terms between 24 to 60 months and have no application or origination fees. Interest rates range from 6.99% to 17.49% APR, based on your creditworthiness.
Bread Pay
Alongside personal loans, Bread Financial offers a buy now, pay later (BNPL) product known as Bread Pay. This lets shoppers purchase products from Bread Pay partners and make payments in a monthly installment plan rather than paying for the entire purchase price upfront.
Distinguishing Features
If you’re looking for a simple savings solution with high rates and few fees, Bread Savings could be the answer. However, this online banking platform will be too simple for some. It doesn’t offer the range of account types, member rewards or budgeting and money management tools found with leading full-service online banks.
Access on the Go
Though Bread Savings lacks branches, it provides digital access to its products through a mobile app (available for iOS and Android devices) and online banking. Both web and mobile access are available 24/7. If you prefer to speak with someone directly, you can chat with a customer service representative Monday through Friday from 7 a.m. to 9 p.m. CT and Saturday and Sunday (and most holidays) from 9 a.m. to 5 p.m. CT.
How Bread Savings Stacks Up
Bread Savings offers limited account options but competitive savings products. The company shines with its short-term CDs, and its 1-year CD is routinely one of the highest-earning options. Bread’s high-yield savings account earns a similarly appealing yield, made all the more attractive for its low minimum.
That said, it is possible to find slightly higher rates on high-yield savings accounts and a wider variety of CD terms than Bread provides with other brands.
Bread Savings vs. Bask Bank
Bask Bank is another online bank that specializes in savings products, with a comparable rate of 5.10% on its no-fee savings account. However, Bask Bank also offers a Bask® Mileage Savings Accountthat pays 2.5 American Airlines AAdvantage miles for every $1 you save annually. For frequent flyers with American Airlines, this could make Bask the better choice.
Like Bread Savings, Bask also offers several CD terms, though its options are shorter overall. To choose between Bread Savings and Bask Bank for CDs, consider the term you’re after and compare available rates.
Bread Savings vs. Marcus by Goldman Sachs
Marcus by Goldman Sachs falls a bit short of Bread Savings with its high-maryield savings account, which currently earns 4.40% APY compared to Bread’s 5.15% APY. It also offers high-yield CDs with terms between six months and six years. Marcus has a relatively low $500 minimum deposit for CDs but pays rates that compete with Bread’s, and it offers a no-penalty CD and rate-bump CD in addition to its standard terms.
Bread Savings and Marcus both offer high-yield savings options with low fees, but Marcus promises more flexibility and a wider variety of account types. Beyond deposit products, Marcus has a range of credit cards and its own investing service, Marcus Invest.
Methodology
Forbes Advisor rates banks based on various factors, including their fees, interest rates and ATM networks, among other characteristics. We assign separate ratings to financial institutions and their individual products, such as checking accounts, savings accounts and certificates of deposit (CDs). We rate banks based on a scale of one to five stars, with one star as the poorest rating and five stars as the best.
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.
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Bread Savings FAQs
Is Bread Savings FDIC insured?
Yes, Bread Savings, formerly Comenity Direct, is a product of Comenity Capital Bank, which is FDIC-insured (FDIC Certificate No. 57570). This means that your money is insured for up to $250,000 per depositor, for each account ownership category, in the event of a bank failure.
How do I contact Bread Savings?
If you have questions about your Bread Savings account, call customer service at 833-755-4354 or send a secure message from your online account. Phone-based customer service is available weekdays from 7 a.m. to 9 p.m. and weekends from 9 a.m. to 5 p.m. CT.
What are the requirements to open a Bread Savings account?
To open an account with Bread Savings, you must be at least 18 years old and a U.S. citizen or resident alien, and you must have a U.S. government-issued Social Security number and a physical U.S. address.
How do I log into my Bread Savings account?
Visit the Bread Savings website to log in. The login button is at the top right corner of the home page. Input your username and password to view your account. You can also access your account through the mobile app.
Is Bread Savings safe?
Bread Savings is safe, and all deposits are FDIC-insured. The platform requires customers to authenticate their identity when making transactions or requesting information to help prevent unauthorized access. Additionally, its mobile app supports Touch ID and PIN authentication to increase account security, and it provides a detailed overview of transactions for easy monitoring.
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