Bread Savings Review: Savings and CDs

Dec 18, 2020

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Overall bank rating

Bread Savings

at Bread Savings, Member FDIC

  • Savings

  • CD rates

4.5

NerdWallet rating 

The bottom line:

Bread Savings (formerly Comenity Direct) offers a high-yield savings account and certificates of deposit but no checking accounts. The high-yield savings account offers a solid 1.15% APY and no monthly fees, and the account requires a $100 minimum deposit to open. Bread Savings™️ CDs also offer solid APYs, with a minimum opening balance of $1,500. There are no monthly fees for CDs, but an early withdrawal penalty will apply if a customer withdraws funds before the term length of the CD is up.

Bread Savings is an online-only bank, so it doesn’t have any branches, but its customer service phone line is available seven days a week. Since the high-yield savings account isn’t designed with frequent withdrawals in mind, the only way customers can withdraw cash is by transferring to a linked account.

Best if: You want an online-only account with a solid APY.

» Want to see other high-yield accounts? Check out NerdWallet's favorite high-yield online savings accounts.

Pros

  • Solid rate on high-yield savings account.
  • No monthly fees on savings or CDs.
  • Online-friendly services.

Cons

  • No checking accounts available.
  • Relatively high minimum opening balance for CDs.
  • No ATMs or branches.

Full review

Bread Savings™️ High-Yield Savings Account

Savings

Member FDIC

4.5

/5
 NerdWallet rating 
APY
1.15%
With $100 min. balance for APY
Learn more

at Bread Savings

The online bank’s high-yield savings option offers a competitive rate of 1.15% APY for balances up to $10 million per account holder. You need only $100 to open, and there’s no monthly fee or minimum balance to worry about. The mobile app lets you deposit checks, but unlike some online banks, Bread Savings doesn’t have goal-setting or budgeting features to help you save.

Bread Savings disclosure

Bread Savings says: "Rates are compared against competitor rates published by NerdWallet.com and the institutions themselves as of 12/18/2020. NerdWallet.com obtains the data from the various banks that it tracks and its accuracy cannot be guaranteed."

Want to see more options? Check out NerdWallet’s best high-yield online savings accounts

Bread Savings™️ CD

CD

Member FDIC

5.0

/5
 NerdWallet rating 
1-year APY
2.00%
3-year APY
2.75%
5-year APY
2.85%
Minimum deposit
$1,500
Learn more

at Bread Savings

Bread Savings offers a stellar combination of solid rates and a wide range of terms from one to five years, including a 2-year rate of 2.50% and a 4-year yield of 2.80%. With these options at your disposal, you might consider a CD ladder strategy. This involves opening CDs of different term lengths to take advantage of two benefits: generally higher rates on long-term CDs and frequent access to some money over time from short-term CDs.

The minimum deposit of $1,500 is somewhat higher than some online banks, and the early withdrawal penalty ranges from three to 12 months' worth of interest, depending on the CD term.

Bread Savings disclosure

Bread Savings says: "Rates are compared against competitor rates published by NerdWallet.com and the institutions themselves as of 12/18/2020. NerdWallet.com obtains the data from the various banks that it tracks and its accuracy cannot be guaranteed."

Compare: NerdWallet’s best CD rates this month

Bread Savings™️ High-Yield Savings Account

Savings

Member FDIC

4.5

/5
 NerdWallet rating 
APY
1.15%
With $100 min. balance for APY
Learn more

at Bread Savings

The online bank’s high-yield savings option offers a competitive rate of 1.15% APY for balances up to $10 million per account holder. You need only $100 to open, and there’s no monthly fee or minimum balance to worry about. The mobile app lets you deposit checks, but unlike some online banks, Bread Savings doesn’t have goal-setting or budgeting features to help you save.

Bread Savings disclosure

Bread Savings says: "Rates are compared against competitor rates published by NerdWallet.com and the institutions themselves as of 12/18/2020. NerdWallet.com obtains the data from the various banks that it tracks and its accuracy cannot be guaranteed."

Want to see more options? Check out NerdWallet’s best high-yield online savings accounts

Methodology

NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, banking experience and overdraft fees. Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation. The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.