Bread Savings CD rates of July 2024

Bread Savings™ offers a suite of certificates of deposit (CDs) with highly competitive rates that also compound daily, adding an extra zhuzh for savers. The problem? There are only five CDs to choose from and you need to pony up a relatively high minimum deposit in order to start saving. 

Account details and annual percentage yields (APYs) are accurate as of April 9, 2024.

About Bread Savings CDs

Keeping it simple, Bread Savings offers five traditional CDs that have no monthly account fees or odd terms. Any funds you deposit here are covered by the Federal Deposit Insurance Corporation (FDIC) — up to $250,000 per depositor, per account ownership type (think individual vs. joint account).

And, Bread Savings rewards loyalty. You can get a yield that’s 0.05 percentage points higher than the rates offered on newly-opened CDs if you allow CDs with maturities of one, two or three years to automatically renew. 

CD TERM	BREAD SAVINGS CD RATES (APY)	BREAD SAVINGS CD RENEWAL RATES (APY)
1 year	5.15%	5.30%
2 years	4.60%	4.70%
3 years	4.25%	4.30%
4 years	4.15%	NA
5 years	4.05%	NA

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If the minimum deposit requirement of $1,500 isn’t a barrier, you could also build a CD ladder. 

For instance, imagine you got three CDs spaced one year apart, starting with a one-year term. Then, as each matures, you reinvest into a three-year CD. This way, within two years, you’ve got three three-year CDs, each maturing in a year, so you’re never far away from being able to access your funds and (ideally) you’ve got high yields locked in. 

But, if something pops up during the CD’s term and you need the money before the maturity date, you’ll face an early withdrawal penalty: 90 days’ worth of simple interest for CD terms shorter than one year; 180 days’ worth of simple interest for CD terms of 12 months to three years; 365 days’ worth of simple interest for CD terms of four years or greater. 

The penalty fees are within industry standards, but if you want a no-penalty, jumbo, or bump-up CD, you’ll need to look elsewhere.

How to get a Bread Savings CD 

Since Bread Savings is a digital bank, you can’t walk into a physical branch or even saddle up to an ATM. Instead, you can use your web browser or your phone. The iOS version of the Bread Savings app earned 4.5 stars out of five and the android version earned 3.8 stars.

1. Pick a CD term. View your options and decide which CD(s) you want, then go to Bread Savings’ website and click on the appropriate CD term.
2. Log in or open an account. When you click to open one, you’ll be prompted to either start filling out a form or to log in. If you’re not already a Bread Savings customer, you’ll need to provide your name, date of birth, Social Security number (SSN), address and a government-issued photo ID, such as your driver’s licence.
3. Transfer your funds. You’ll need to transfer at least $1,500 to meet the CD’s minimum deposit requirement, but you can deposit more if you wish, up to $1 million per CD and $10 million total per depositor. 
4. Review the fine print and submit. Check over and agree to the CD’s terms and conditions before you hit the submit button. Make a special note of when the CD will mature, so you won’t forget. 

If your CD term is up, and you want to withdraw funds, we recommend doing an electronic transfer. Bread Savings charges $25 per outgoing wire transfer and $15 per official check.

How Bread Savings CD rates compare

When you’re thinking about opening a CD, compare the best CD rates so you don’t miss out on interest. 

Other products Bread Savings offers

Bread Savings only offers online CDs and a high-yield savings account. It can’t be your one-stop shop to manage your daily finances, but it can help you increase your cash — whether you’re saving for a rainy day or for retirement. 

Its High-Yield Savings Account features a 5.15% APY and has a $100 minimum deposit requirement. 

Keep in mind though that FDIC coverage applies to the total amount of deposits you have in one bank. So if you want to deposit $200,000 into your savings account, but you already have $100,000 in CDs at the same institution, you may want to split your funds between at least two banks to get full protection.

Bread savings doesn’t offer checking accounts, money market accounts or loans. 

Bread Savings review

Bread Savings, formerly titled Comenity Direct, is part of Comenity Capital Bank, which, in turn, is a part of Bread Financial, which used to be known as Alliance Data. As a whole, the company has been through a few acquisitions, resulting in a confusing mash of names and some rebanding.

Looking past corporate business deals, however, Bread Financial offers financial services, including credit cards and loans and Breads Savings focuses on deposit products.

As a smaller online bank division, Bread Savings works hard to attract customers, offering highly competitive rates and no monthly maintenance fees. (Although you’ll find a $25 wire fee, $15 check fee and a $5 fee for a paper copy of your accounts).

If you don’t mind banking digitally and having your savings and checking accounts under different roofs, Bread Savings could be a good option for you. 

Frequently asked questions (FAQs)