Bread Savings, formerly Comenity Direct, is an online-only bank offering a high-yield savings account and certificates of deposit (CDs) in five terms.
This review focuses on personal banking products and services from Bread Savings. Annual percentage yields (APYs) and account details are accurate as of April 25, 2022.
The Bread Savings High-Yield Savings Account pays 1.00% APY, more than 16 times the national average rate on savings accounts, according to data from the FDIC. Interest is compounded daily and credited monthly.
You’ll need to deposit a minimum of $100 to open a high-yield savings account, but there’s no minimum balance requirement to maintain the account.
There is no monthly maintenance fee. You also won’t get charged for ACH transfers, online statements or incoming wire transfers. 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 with this account. You can add money via mobile check deposit and ACH transfer.
Bread Savings offers five CDs, with terms from one to five years. There’s a $1,500 minimum deposit requirement to open a CD. Earned interest is compounded daily and credited monthly to your account.
Here are the CD rates for Bread Savings:
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.
You’ll be notified by Bread Savings when your CD is approaching maturity. Once your CD reaches its maturity date, 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 interest rate that’s currently being offered.
You’ll be charged an early withdrawal penalty if you decide to withdraw your funds prior to 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.
As with the Bread Savings high-yield savings account, there’s no charge for ACH and incoming wire transfers.
Access on the Go
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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 app access are available 24/7, but if you prefer to speak with someone directly, you can chat with a customer service representative Monday through Friday, 7 a.m. to 9 p.m. CT, and Saturday and Sunday (and most holidays), 9 a.m. to 5 p.m. CT.
The Bread Savings app gets a rating of 4.5 out of 5 stars on the App Store and 2.2 out of 5 stars on Google Play. The low Google Play rating, in large part, reflects users who sought to use the Bread Savings app to manage their credit cards, which it is not designed to do.
- Competitive interest rates on banking products
- No monthly maintenance fees on savings or CDs
- Mobile app available for iOS and Android
- No checking or money market products
- No branches
How Bread Savings Stacks Up
Bread Savings offers some of the best CD rates available. And the bank’s high-yield savings account has a competitive rate as well. If you’re looking for a safe place to put your savings and earn interest, Bread’s accounts may be an attractive choice.
However, Bread Savings is not a full-service bank, putting it at a disadvantage to some of its competitors. And you’ll need to be comfortable banking through online and mobile access, since this bank doesn’t maintain branches.