Banking » Reviews » Bread Financial Savings And CDs 2024 Review
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Bread Financial Savings And CDs 2024 Review

Bread Financial is an online only banking service offering competitive rates on both savings and deposits. However, it has some limitations.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: April 15, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: April 15, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

Bread Financial Savings

Bread Financial logo
Bread Financial logo

Bread Financial Savings

Fees

$0

Minimum Deposit

$100

Our Rating

4.5
4.5/5

APY Savings

5.15%

Bread Financial’s savings and CD products offer some of the best rates on the market. However, the lack of a checking account in its product line up means that Bread Financial cannot provide a full alternative to your current bank.

Since Bread Financial is an online only operation, it is widely available, but this does mean that there is no branch network and Bread does not have its own ATM network. However, you can manage your account via its app, which has mixed reviews. Additionally, Bread Financial recently began using a third party company for its customer support, which has led to complaints about long wait times and customer service issues.

Overall, Bread Financial has online friendly services with no monthly maintenance fees, making it a great option for those who are looking to maximize the returns on savings funds. However, the product line is a little sparse, so you will not be inundated with choices if you want to open an account.

  • Solid Customer Support
  • Competitive Rates
  • No Monthly Maintenance Fees
  • User Friendly Platform
  • No Checking Account
  • No ATM or Branch Network
  • External Account Needed
  • High Minimum CD Deposit

What's the main reason to skip Bread Financial?

If you’re looking for a financial institution that can handle all of your banking needs, Bread Financial is not the right choice for you. The other reason to skip Bread Financial is if you don’t have the minimum deposit required for a CD, as there are other financial institutions offering similar rates with no minimum.

Can you buy/invest in gold via Bread Financial?

Currently, Bread Financial does not have any investment options.

Is Bread Financial worth it for Joint Accounts?

With competitive rates and minimal fees, Bread Financial is certainly worthy of consideration.

Table Of Content

Banking Services
Credit Options
Savings Accounts
Mortgage
Checking Accounts
Government Mortgage
CDs
Credit Cards
Money Market Account
Debit Card
Investing Capabilities
Personal Loans

What You Can Get With Bread Savings?

As of April 2024, Bread Financial only offers one type of savings account; its High Yield Savings Account. The account has some key features that will help you determine if it is a good option.

  • $100 minimum initial deposit to open an account.
  • High APY: The current rate of 5.15% APY is comparable to some of the best HYSA, providing an excellent return on your savings.
  • Interest is compounded daily and credited to your account monthly.
  • No monthly maintenance charges, so you don’t need to worry about meeting waiver criteria.
  • Minimal Fees: There are no fees for ACH transfers, online statements or incoming wire transfers. Some fees that you may incur include paper statement fees, outgoing wire transfer fees and official check request fees.
  • Savings Calculator: Bread Financial has a savings calculator associated with this account, so you can track how long it would take you to reach your financial goals.
  • Third Party Account Needed: Since Bread Financial does not have a checking account, you may need to transfer funds into a third party account. However, you can deposit checks using the app, making it easier to start earning on your checks, rather than needing to pay it into another account, wait for it to clear and then transfer the money into your account.

Bread Financial CDs

CD Term
APY
Early Withdrawal Penalty
12 Months
5.25%
180 days simple interest
24 Months
4.65%
180 days simple interest
36 Months
4.25%
180 days simple interest
48 Months
4.15%
365 days simple interest
60 Months
4.15%
365 days simple interest

Bread Financial also offers CDs, which offer competitive rates for savers. The key features of this product include:

  • Terms of One to Five Years: You can choose a CD term in one-year increments, so you can select the one best suited to your circumstances and financial goals. The 1 year CD rates are among the highest you can find for this term.
  • $1,500 Minimum Deposit: Regardless of the term, there is a minimum deposit requirement of $1,500 for Bread Financial CDs.
  • Interest Compounds Daily: Interest on Bread Financial CDs compound daily and it is credited to your account monthly.
  • No Maintenance Fees: There are no hidden fees, with no maintenance fees and free online statements. However, paper statements, outgoing wire transfers and official checks do incur a fee.
  • Early Withdrawal Fees Apply: Bread Financial does not offer no-penalty CDs, so if you do need to withdraw your funds early, you will incur an early withdrawal fee. If your CD has a term of less than one year, this is a penalty of 90 days of simple interest. This increases to 180 days for CDs with a term of up to three years and 365 days if your CD has a term of four or five years.
  • Auto Renewal: There is a 10-day grace period after your CD matures. During this time, you can cash out or make changes. Otherwise, the CD will auto-renew.

Overall, Bread Financial CDs provides great options for depositors and offers rates that are among the highest CD rates in the market.

Pros and Cons

Pros
Cons
Competitive Rates
No Checking Account
No Monthly Maintenance Fees
Minimal Fees
No ATM or Branch Network
Solid Customer Support
High Minimum CD Deposit
User Friendly Platform

You can earn competitive rates on your savings and the loan rates are also competitive.

Similar to top online banks, Bread Financial accounts have no monthly maintenance fees. 

While many monthly fees can be waived, you need to meet waiver criteria, which can add another layer of complexity to managing your account.

Bread Financial has minimal fees for its products. Loans have no origination fees, while there are no ACH transfer or e-statement fees.

Bread Financial is also very transparent about its fees, so you’ll know exactly what to expect.

While it has had a few bumps in the road, generally, Bread Financial’s customer support has a solid reputation. So, if you do run into an issue, you can expect the Bread Financial team to provide a resolution.

Since Bread Financial is a tech forward company, it offers a user friendly, online platform to manage all aspects of your account.

Without a checking account in its product line up, Bread Financial is not a viable option to cover all your banking needs.

This follows on from the previous point, but while it is possible to deposit checks via the app, you will need an external account to transfer funds into and out of your Bread Financial account.

Bread Financial is a fully online financial institution with no branch or ATM network. So, if you prefer to deal with face to face support, this is not the right choice for you.

While Bread Financial does offer competitive CD rates, the $1,500 minimum deposit requirements may put this product out of reach for many savers.

Bread Financial Customer Service

Since Bread Financial is best known for its line of credit cards, there are not very many reviews for the customer service offered with its CDs and savings accounts. However, this financial institution does have a B rating with the Better Business Bureau. Additionally, the app has solid ratings in both the Google Play Store and the App store.

The most recent complaints about Bread Financial’s customer service appear to relate to the 2022 migration of Bread Financial’s core processing technology to a third party provider,which created longer than normal hold times.

If you do need to contact the customer service department, there are several options. This includes a comprehensive FAQ help page, phone helpline, which is available during business hours, and secure online chat.

Other Banking Products Are Offered By Bread Financial

Currently, Bread Financial does not offer a checking account option. This means that it is not possible to move all of your banking activity over to Bread. Additionally, you may need to operate a third party account to transfer funds into and out of your Bread Savings or Bread CD account.

However, it offers credit cards and loans for consumers:

Bread Financial has a number of credit card options, many carrying over from its Comenity Bank days.

  • The Bread Cashback™ American Express® Credit Card: This card is the first offered since the institution became Bread Financial. It offers 2% cash back unlimited, that can be redeemed as a direct deposit into your bank account or as statement credit.  The card has no annual fee and there are a few benefits including up to 20% off your bill when you dine at participating restaurants, access to presale tickets, purchase protections and ID theft insurance.
  • Bread Co-branded credit cards: Bread Financial offers over 170 co-branded credit cards with a variety of options from professional sports teams to retail or travel brands. These cards offer brand specific deals such as discounts, free shipping and rewards for branded purchases.
  • AAA
  • Academy Sports
  • Ann Taylor
  • Arizona Cardinals
  • Bed, Bath & Beyond
  • com
  • Forever 21
  • Green Bay Packers
  • Hot Topic
  • Houzz
  • Ikea
  • Lexus
  • Petco
  • Sephora

Bread Financial offers personal loans with fixed rates for up to $35,000 and terms of 24 to 72 months. Bread loans have no application or origination fees, so you can use the funds for consolidating debt or for making a significant purchase.

Bread aims to provide an approval decision in seconds and there is a simple three step application process. After you provide your basic details, Bread Financial will initiate a soft credit pull.

You can then explore your loan options including how much you are approved for and the monthly payment you could expect. Bread Financial also has the option to designate credit card balances you would like to consolidate. You can then finalize the loan APR and term length before you accept your loan agreement.

However, rates are determined by your creditworthiness, so if you have less than ideal credit, Bread may not offer the most competitive deal.

How to Open a Bread Financial Account

As an online financial institution, Bread Financial has a simple account opening process that you can complete from the comfort of your own home. You can open an account in a few simple steps.

How to Open a Bread Financial Account
The Steps When Opening a Bread Financial Account(Screenshot from breadfinancial.com)

 

  1. Visit the Bread Financial Website: The first thing you’ll need to do is visit the Bread Financial website and find the appropriate product page. This will show all the product details and any terms and conditions. You can then start the account opening process by clicking on the button.
  2. Complete the Application Form: This is a fairly standard form, so you’ll need to provide your basic details including your name, date of birth, Social Security Number, and contact details.
  3. Click Submit: Once you complete the form, you simply need to click “Submit” and the Bread FInancial team will review your application and open your account.
  4. Funding: This is an optional step, but you can link a third party account to fund your new account. The exception to this is with a Bread CD, which has a minimum initial deposit requirement. So, you will need to fund the account before it can be fully opened.
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FAQs

As with all US financial institutions, you will be required to verify your ID, which you can do by submitting a copy of your driver’s license, passport or state issued photo ID.

No, at this time, Bread Financial does not have any checking account options.

Generally, you’ll need good to excellent credit to qualify for Bread credit cards, but it may be possible to qualify for a Bread loan with lower credit scores.

Yes, Bread Financial is FDIC insured, which provides up to $250,000 of coverage per depositor in each ownership category. So, if you have a savings account and a CD, you’ll have $250,000 of coverage for each account.

How We Rate And Review Savings Account: Methodology

The Smart Investor team has conducted an in-depth analysis of savings accounts offered by banks and credit unions tailored to the needs of savers. Our review focused on four key categories, with specific considerations for savers, and here's how we rated them:

  • Savings Rates and Terms (40%): We thoroughly examined the interest rates provided by financial institutions, along with any unique terms and conditions attached to their savings accounts. Higher scores were awarded to banks and credit unions, offering competitive rates, reasonable minimum deposit requirements, and minimal fees, ensuring savers get the best value for their money.
  • Savings Account Features (30%): This category assessed the array of features designed to cater to savers' needs, including fees, minimum deposit requirements, mobile app functionality, ATM access, and withdrawal options. Financial institutions providing a diverse range of features and convenient banking solutions received higher ratings in this category, reflecting their commitment to meeting the specific needs savers.
  • Customer Experience (20%): The ease of account opening, the responsiveness of customer service, the usability of mobile apps (thoroughly tested by our team), and the bank's policies for assisting customers were evaluated in this category. Banks and credit unions offering seamless account opening processes, efficient customer service, and user-friendly digital platforms were rated higher, ensuring a positive banking experience for  savers.
  • Bank Reputation (10%): We considered the reputation of each financial institution, incorporating ratings from trusted sources such as JD Power, TrustPilot, and local Better Business Bureau reviews. Higher scores were awarded to banks and credit unions with positive reputations and satisfied customers, reflecting their reliability and trustworthiness.

By weighing these categories appropriately and focusing on factors relevant to savers, our review provides valuable insights to help residents of the state make informed decisions when selecting a savings account.

Savings Accounts Reviews

Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
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Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.
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