2024 Bread Savings Review: Uncover the Best Rates & Benefits!
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The personal finance experts have taken a close look at Bread Savings, the online bank formerly known as Comenity Direct. While it offers some appealing features, it doesn’t quite compete with the top online banks out there. You won’t find a wide array of bank account options or a robust ATM network, and the absence of a checking account can make accessing your funds a bit of a hassle.
That said, if you’re after a solid interest rate on a high-yield savings account or a CD, Bread Savings deserves a spot on your radar. Their rates are significantly higher than the national average and even outshine many other online banking alternatives.
Today’s Bread Deposit Rates
Overall Rating for Bread Savings
Introducing Bread Savings
Key Insights on Bread Savings
Bread Savings is a fully digital bank offering high-yield savings accounts and CDs, but don’t expect physical ATMs, debit, or credit cards here. To access your funds, you’ll need to link an external bank account and initiate transfers.
Previously branded as Comenity Direct, the bank underwent a rebranding in 2022, aligning itself with its parent company, which now includes lending services under the name Bread Financial.
Your deposits at Bread Savings are FDIC-insured for up to $250,000 per individual account.
Opening an account is straightforward—just hop online! You’ll need to be at least 18 years old and provide a Social Security number along with a U.S. address. If you don’t have a Social Security number, you might want to explore other banks that cater to non-U.S. citizens.
User Experience with Bread Savings
Since Bread Savings has no physical branches, managing your accounts online or through their app is essential. The app enables you to perform standard banking tasks, like mobile check deposits and fund transfers.
Users have rated the Bread Savings mobile app 4.6 stars in the Apple Store and 4.0 stars in Google Play, indicating a generally positive experience. However, there are other banking apps that might offer more robust features and user satisfaction.
Customer Support: Availability & Feedback
If you need help, Bread Savings customer service is available on weekdays from 7 a.m. to 9 p.m. CT and weekends from 9 a.m. to 5 p.m. CT. You can also reach out through their online banking platform.
However, if around-the-clock support is crucial for you, banks like Capital One and Ally Bank may be a better fit, as they provide 24/7 customer support.
Fees, Rates, and Financial Perks of Bread Savings
Fee Structure Overview
One of the standout features of Bread Savings is its transparent fee structure. There are no monthly maintenance fees, which is a common perk among online banks.
However, be aware of a few fees: $15 for official checks, $25 for outgoing wire transfers, and $5 for paper statements—standard fees in the realm of online banking.
If you opt for a CD, keep in mind the early withdrawal penalties, which vary based on your term length:
- 90 days of simple interest for terms under 12 months
- 180 days for terms between 12 and 36 months
- 365 days for terms of 48 months or more
These penalties are higher compared to other banks, so if you think you might need to withdraw early, consider looking into options with lower fees or no-penalty CDs.
High-Yield Savings Account and CD Rates
Bread Savings boasts competitive interest rates for their high-yield savings accounts and CDs. While some financial institutions might edge them out, Bread Savings remains a strong contender.
Is Bread Savings a Reliable Option?
The Better Business Bureau has awarded Bread Savings an A+ rating, reflecting their commitment to customer service.
Plus, there haven’t been any significant controversies surrounding the bank recently.
Pros and Cons of Bread Savings
- Competitive interest rate on savings accounts and CDs
- No monthly service fees
- Free incoming wire transfers
Cons of Banking with Bread Savings
- No checking or money market accounts
- Lack of ATM access
- Funds must be transferred to an external account for access
Review of Bread Savings High-Yield Savings Account
If you can put down at least $100 to get started, the Bread Savings High-Yield Savings Account is an excellent choice. You’ll enjoy a competitive interest rate without the burden of monthly service fees.
However, the one drawback is limited access to your funds. To withdraw money, you must transfer it to an external bank account, unlike other banks that may provide ATM or debit card access.
Review of Bread Savings High-Yield CD
Bread Savings offers attractive CD rates for terms ranging from three months to five years. However, their minimum deposit requirement of $1,500 is higher than many other banks, which typically ask for only $1,000.
Comparing Bread Savings
Bread Savings vs. MySavingsDirect
MySavingsDirect, an online branch of Emigrant Bank, provides high-yield savings accounts and CDs similar to Bread Savings.
If you desire a competitive interest rate for your savings, Bread Savings is the way to go. MySavingsDirect offers a 4.35% APY, which is lower than that of the Bread Savings account. Keep in mind, though, that rates can fluctuate.
For ease of opening an account, MySavingsDirect is more appealing since you can get started with just $1, while Bread Savings requires a $100 minimum.
A similar pattern emerges with their CDs: Bread Savings may offer better rates, but MySavingsDirect provides a lower minimum opening deposit.
Bread Savings vs. Salem Five Direct
Salem Five Direct, the online division of Massachusetts-based Salem Five, stands out for those who prefer quick access to their savings. They offer a checking account, allowing for seamless transfers or ATM withdrawals.
If you’re focused on competitive interest rates for your savings account, both banks can serve you well. However, when it comes to CDs, Bread Savings has a significantly lower minimum opening deposit compared to Salem Five’s requirement of $10,000.
Why Trust Us: Our Review Process for Bread Savings
We aim to empower you to make savvy financial decisions. Our bank reviews are designed to provide valuable insights through thorough research and analysis of banking products.
Our team operates independently, meaning our editorial staff has complete autonomy over the content they produce. For more about our approach to reviewing products, check out our editorial standards page.
Each bank account is rated on a scale from one to five stars. A one-star rating indicates that significant improvements are needed, while five stars represent top-tier options.
We analyze various features for each type of account, scoring them based on their impact on your banking experience. For example, early withdrawal penalties may not apply to high-yield savings accounts, but they are crucial for CDs. Our methodology breaks down which aspects are evaluated for each account type.
With each category scored from 0 to 5 and weighted averages applied, we ensure that key features like interest rates and fees carry more influence in our overall star rating.
FAQs About Bread Savings
Bread Savings is an online-only bank offering high-yield savings accounts and CDs, with terms varying from three months to five years.
You can open a Bread Savings account online from anywhere in the U.S. You must be at least 18 years old and either a U.S. citizen or a permanent resident with a U.S. ID.
Unfortunately, Bread Savings accounts do not come with ATM or debit cards. If you want to withdraw funds, you’ll need to transfer them to an external bank account first.
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