Bread Savings, an online banking platform, provides a high-yield savings account along with five options for Certificate of Deposit (CD) terms. Opening the savings account requires a minimum of $100, significantly lower than the $1,500 required for a CD. Notably, the Bread Savings account is free from monthly service fees or minimum balance requirements post initial deposit.
Bread Savings offers highly competitive yields on its savings account, making it an attractive option for savers.
In April 2022, Comenity Direct rebranded as Bread Savings. This online-only bank specializes in offering a savings account and five terms of CDs with competitive yields. Bread Savings distinguishes itself with low minimum opening balance requirements, facilitating easy account opening for customers.
However, consumers seeking checking and money market accounts or those requiring access to physical branches will need to explore alternative options.
Bread Savings Pros:
- Bread Savings has been consistently competitive in raising savings and CD yields since the Federal Reserve began increasing interest rates in 2022.
- The high-yield savings account at Bread Savings does not incur a monthly fee.
Bread Savings Cons:
- Customers are unable to deposit cash, limiting deposit options.
- With no physical bank branches or ATM access, customers must rely solely on online banking services.
- Bread Savings has a limited range of product offerings compared to traditional banks.
Bread Savings presents a high-yield savings account boasting a competitive Annual Percentage Yield (APY). With a low minimum deposit requirement of just $100 and no monthly maintenance fees, it provides accessibility and affordability for savers. However, Bread Savings does not operate an ATM network or maintain physical branches, necessitating deposits to be made via ACH transfer. Customers can also conveniently deposit checks using the bank’s mobile app, offering flexibility and convenience in managing their finances.
Bread Savings is best suited for individuals seeking a competitive yield on either a CD or a savings account. It caters well to those with at least $1,500 to deposit into a CD or those with a minimum of $100 to open a high-yield savings account.
In terms of safety, Bread Savings is indeed a legitimate bank. It operates under Comenity Bank, which is an FDIC-insured institution. The presence of Bread Savings on the FDIC’s website confirms its FDIC insurance status.
While the Bread Savings name emerged in 2022, its parent company, Comenity Bank, has been established since 1989. As a member FDIC institution, Bread Savings adheres to regulatory standards, ensuring legitimacy and trustworthiness.
