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Bread Savings Review (formerly Comenity Direct) – Forbes Advisor

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Bread Savings, formerly Comenity Direct, is an online-only bank offering a high-yield savings account and certificates of deposit (CDs) in five terms.

This review focuses on Bread Savings personal banking products and services. Annual percentage returns (APY) and account details are accurate as of April 25, 2022.

Account Basics

High yield savings

The Bread Savings High Yield Savings Account pays out 1.00% APY, more than 16 times the national average rate on savings accounts, according to FDIC data. Interest is compounded daily and credited monthly.

You will need to deposit a minimum of $100 to open a High Yield Savings Account, but there is no minimum balance requirement to maintain the account.

There are no monthly maintenance fees. You will also not be charged for ACH transfers, online statements, or incoming wire transfers. However, you will pay $25 per outgoing wire transfer, $15 per official check request, and $5 each time you request a paper statement.

To withdraw money, you must transfer money to a linked account. Bread Savings does not offer ATM cards, debit cards or checks with this account. You can add money via mobile check deposit and ACH transfer.

CD

Bread Savings offers five CDs, lasting from one to five years. There is a minimum deposit requirement of $1,500 to open a CD. Interest earned is compounded daily and credited to your account monthly.

Here are the CD rates for Bread Savings:

The APY assumes that all interest remains on deposit until the CD maturity date. However, you can choose to have the interest paid monthly into a bread savings account or another verified savings account.

You will be notified by Bread Savings when your CD is approaching maturity. Once your CD reaches its maturity date, you have a 10-day grace period to withdraw funds without penalty. If you do nothing at maturity, your CD will automatically renew for the same term but at the interest rate currently offered.

You will be charged an early withdrawal penalty if you decide to withdraw your funds before the CD maturity date. The penalty for terms less than one year is 90 days of simple interest. For CD terms of one year to three years, the penalty is 180 days of simple interest. For CD terms of four years or longer, the penalty is 365 days of simple interest.

As with the Bread Savings High Yield Savings Account, there are no fees for ACH and incoming wire transfers.

Access on the go

Although Bread Savings does not have branches, it offers digital access to its products through a mobile app (available for iOS and Android devices) and online banking. Access to the web and mobile apps is available 24 hours a day, 7 days a week, but if you’d rather speak to someone directly, you can chat with a customer service representative Monday through Friday, 7 a.m. to 9 p.m. a.m. CT, plus Saturday and Sunday (and most holidays), 9 a.m. to 5 p.m. CT.

The Bread Savings app is rated 4.5 out of 5 stars on the App Store and 2.2 out of 5 stars on Google Play. Google Play’s low rating largely reflects users who sought to use the Bread Savings app to manage their credit cards, something it’s not designed to do.

Advantages

  • Competitive interest rates on banking products
  • No monthly maintenance fees on savings or CDs
  • Mobile app available for iOS and Android

The inconvenients

  • No checks or money market products
  • No branches

How bread savings stack up

Bread Savings offers some of the best CD rates available. And the bank’s high-yield savings account also has a competitive rate. If you’re looking for a safe place to put your savings and earn interest, Bread’s accounts may be an attractive choice.

However, Bread Savings is not a full-service bank, which puts it at a disadvantage compared to some of its competitors. And you will need to be comfortable with banking through online and mobile access as this bank does not have branches.

Frequently Asked Questions (FAQ)

Is Bread Savings FDIC insured?

Yes, Bread Savings, formerly Comenity Direct, is a product of Comenity Capital Bank, which is FDIC insured (FDIC Certificate #57570). This means that your money is insured up to $250,000 per depositor, for each category of account ownership, in the event of bank failure.

How do I contact Bread Savings?

If you have questions about your Bread Savings account, call customer service at 833-755-4354. You can also send a secure message through your online account.

What are the conditions for opening a bread savings account?

To open an account with Bread Savings, you must be at least 18 years old, be a US citizen or resident alien, have a US government-issued Social Security number, and have a physical address in the United States.

How do I log in to my Bread Savings account?

Visit the Bread Savings website. The login button is located in the upper right corner of the home page. From there, enter your username and password to view your account. You can also access your account through the mobile app.