Banking » Compare Banks » CD Rate Battle: Comparing Amex And Bread Savings
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CD Rate Battle: Comparing Amex And Bread Savings

American Express and bread savings offer highly competitive CD rates. But there are drawbacks and differences between them
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
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: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
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.

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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 4.75%
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
4.00%
5.25%
18 Months
3.25%
N/A
24 Months
4.00%
4.65%
36 Months
3.00%
4.25%
48 Months
3.00%
4.15%
60 Months
3.00%
4.15%

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.

CD Rate Battle: Comparing Amex CDs And Bread Savings CDs

Compare CD Rates

Lorraine Smithills

Lorraine Smithills

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
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