Table Of Content
CDs are a well-liked option for individuals who wish to earn interest on their savings while keeping their money safe. American Express Bank and Bread savings are two decent online banking choices that provide CDs. While both banks offer competitive rates and flexible terms, they have significant differences.
This article will examine the CDs provided by American Express Bank and Bread savings, evaluating rates, minimum deposits, early withdrawal penalties, and other features. Our analysis will assist you in deciding which bank's CDs suit your financial needs best.
American Express | Bread Savings | |
|---|---|---|
CD Range | Up to 4.00% | 4.25% – 4.75% |
Minimum Deposit | $0 | $1,500 |
Early Withdrawal penalty | 270 – 540 days of interest | 180 – 365 days of interest |
Terms | 12 – 60 months | 12 – 60 months |
CD Rates Comparison
Overall, bread savings CD rates are a bit higher than what American Express offers. While the difference is not significant if you're looking for 12, 24 and 60 months CD, for the rest of the terms, the yield is much higher. Amex CD rates are generally high only for specific terms.
Compared to other banks and credit unions, the rates are competitive and inline with highest level of CD rates you can get.
However, both Amex and Bread savings don't offer a variety of terms. Customers who are looking to put their money for less than a year such as 3 and 6 months CD, may need to consider other places.
CD Term | American Express APY | Bread Savings APY |
|---|---|---|
12 Months | 3.85% | 4.10% |
18 Months | 3.85%
| N/A |
24 Months | 4.00% | 4.00% |
36 Months | 3.60% | 4.00% |
48 Months | 3.60% | 4.00% |
60 Months | 3.75% | 4.00% |
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CD Early Withdrawal Penalty: How They Compare?
If you are looking for a long-term CD and need to withdraw your funds before maturity, bread savings offers more flexibility than Amex bank.
It doesn't mean you won't be charged a penalty, but the early withdrawal penalties with Bread is lower compared to Amex for almost all terms.
CD Term | Amex | Bread Savings |
|---|---|---|
12 Months | 270 days of interest | 180 days of interest |
18 Months | 270 days of interest | N/A
|
24 Months | 270 days of interest | 180 days of interest |
36 Months | 270 days of interest | 180 days of interest |
48 Months | 365 days of interest | 365 days of interest |
60 Months | 540 days of interest | 365 days of interest |
Is There A No Penalty CD?
While there are banks and credit unions that offer this feature for customers, Amex and bread savings don't offer options for no penalty CD.
About Bread Savings
Bread Financial boasts some of the most attractive rates for its savings and CD products in the market. However, its product lineup lacks a checking account, preventing it from offering a comprehensive alternative to your current bank.
As an online-only bank, Bread Financial's services are accessible to a broad customer base, but it does not have a branch network or its own ATM network. The account can be managed through the Bread Financial app, which has garnered mixed reviews. Moreover, the bank recently outsourced its customer support to a third-party company, resulting in complaints about lengthy wait times and customer service problems.
About Amex Bank
American Express, with a history dating back to 1850, is renowned for its credit card offerings. Its credit cards are deemed the gold standard for reward cards, providing numerous benefits with reasonable annual fees. Approximately ten years ago, American Express broadened its product line and started introducing banking products.
One of its initial products was a high-yield savings account, which was shortly followed by CDs. Currently, American Express bank has a comprehensive range of products, including a checking account, IRAs, personal loans, and business products.
Compare Amex CDs
American Express and Marcus offer competitive rates on savings with no monthly fees. However, a mobile check deposit is not available.
