Bread Saving Review: High Yield Savings Accounts From a Known Store Credit Card Issuer

GOBankingRates Score

4.8
Quick Take: Bread Savings is best known for the retail store credit cards it issues for brands such as Victoria's Secret, Wayfair and Williams Sonoma. But you can access more than credit from the financial institution -- savings accounts and certificates of deposit are also available. This in-depth Bread Savings review will highlight how the banking side works and if it's the right choice for you.
  • Customer Service
    5.0
  • Fees
    5.0
  • Interest Rates
    5.0
  • Opening Deposit Requirements
    4.0
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Get started with a quick Bread Savings review of its strengths and weaknesses.

Pros

  • High-yield savings account pays 1.00% APY
  • Bread Savings' two-year CD rate is 1.80% APY
  • Winner of Purdue University's BenchmarkPortal for excellence 15 times in a row for customer service
  • The savings account has very few fees and a low opening balance of $100
  • Direct deposit available

Cons

  • No checking account offered
  • No debit cards available for making withdrawals

Bread Savings Overview

Comenity Bank issued its first credit card in 1986  and has partnered with 160 of the top retailers to issue co-branded and private label store cards. In 2018, Comenity added banking services, known as Comenity Direct, to provide low-fee, high-yield savings and CD accounts that are FDIC insured. Comenity Bank rebranded as Bread Savings in 2022. Bread Savings earned a spot in several categories of GOBankingRates’ most recent study for one of the Best Online Banks of 2022, Best CD Accounts of 2022 and Best Savings Accounts of 2022, making it ideal for anyone looking to grow an emergency fund or earn a higher interest rate on their savings.

Bread Savings Review Banking Products

What makes Bread Savings saving accounts and CDs worth considering? Interest rates that are higher than what some of the top brick and mortar banks offer may be the top feature. Bread Savings also holds its own among other online banks, ranking in 10th place in the GOBankingRates study of the Best Online Banks of 2022. But there’s more to why the bank ranked high in the study.

Bread Savings Account

Bread Savings has only one high-yield savings account option, but the simplicity of the product should suffice for most account holders. Since there are no branch locations, you’ll need to feel comfortable doing your banking online or using a mobile app. If so, you’ll be able to deposit checks, transfer funds and manage your money any time, day or night.

Bread Savings makes banking affordable. You don’t have to worry about monthly maintenance or account minimum fees. Interest rates are competitive at % APY and it compounds daily; one of the main factors behind why Bread Savings ranked it 7th place in GOBankingRates’ annual list of the Best Savings Accounts of 2022. However, growing your savings can pose a bit of a challenge if you need to make withdrawals occasionally. Your only option is to transfer from one account to another since no debit cards are available for the account.

To open an account, you’ll need a $100 minimum opening balance. Mobile check deposits, as well as direct deposits, are available, and interest compounds daily. While you won’t be charged monthly maintenance fees and fees won’t be hidden from you, expect that the are fees for wire transfer, paper statements and official check requests. You are also limited to six withdrawals per month.

Bread Savings CD Rates

A certificate of deposit can be useful when you need a guaranteed interest rate for your funds and you won’t need to access the balance for a set period. Bread Savings ranks third as part of the Best CD Accounts of 2022 in the annual GOBankingRates banking study. The financial institution provides five annual term lengths starting at one year to make accelerated savings growth possible. The longer you leave your money in a CD, the more interest you’ll earn.

Current rates start at 0% for a one-year CD and up to % for five-year terms and interest compounds daily. Also, five term lengths are available of one, two, three, four and five years and automatic renewal is available. You’ll need at least $1,500 to get started with a maximum of $1 million. Choose your term wisely — if you need to withdraw part or all of your funds, your account is subject to an early withdrawal penalty of 180 days simple interest on terms of three years or less. Terms with a length of four or five years will have a penalty of 365 days simple interest.

Before you apply, compare how Bread Savings’ rates compared with the best CD rates from other banks.

Bread Savings Review: Top Features

Bread Savings earned a 4.8 out of 5 stars overall for four of the bank’s strongest features. Customer service and low bank fees are top performers. Bread Savings representatives are on standby, waiting for your call or email to answer questions or help resolve any issues.

Bread Savings doesn’t charge many of the fees that many banks commonly tack on, such as monthly maintenance and ATM withdrawal fees. In addition, interest rates for the bank’s CDs and its savings account are higher than average. If this all sounds excellent, you’ll also be happy to hear that opening a savings account or CD is simple. You can apply online and fund the account by initiating a bank transfer.

Editor’s Favorite

Interest rates are at historically low levels, making it hard to earn anything significant on your cash. Bread Savings pays APY to savings-account holders, regardless of whether the balance is $100 or $1 million.

Banking Experience

A typical Bread Savings review from customers explains that you’re getting a no-frills experience. You won’t have access to perks, rewards, cards or bank branches, but you’ll be earning higher interest on your savings accounts.

Customer Service

Bread Savings prides itself in top-shelf customer care. Although the only way to access customer service is by phone call, representatives provide a good experience — Bread Savings has won Purdue University’s BenchmarkPortal for customer service excellence 15 times in a row. 

Accessibility and Branch Availability

There are no branches available, so you’ll need to get comfortable handling your savings accounts via the website or mobile app. This isn’t necessarily a bad thing. Unlike a checking account, which you probably need to access often, making it less convenient to access your savings balance may help you spend less — and grow your funds faster.

Mobile and Digital Experience

Besides online banking through the Bread Savings website, Bread Savings’ mobile app is available for both iOS and Android. The Bread Savings review at the Google Play Store for the app is average, though iPhone and iOS users seem happier with the app.

  • Google Play: 3 out of 5 stars, 622 votes
  • Apple store: 4.5 out of 5 stars, 1.1K votes

Some of the banking functions you can complete using the Bread Savings app include:

  • Managing your account
  • Viewing balances and history
  • Making money transfers
  • Setting up account alerts
  • Depositing checks
  • Contacting customer care

Your personal information is safe, thanks to encryption, authentication and round-the-clock monitoring of your account activity for the website. Touch ID and PIN code sign-in using a passcode or your fingerprint are available through the mobile app.

How To Open an Account

According to Bread Savings, opening an account online takes minutes. You’ll need to be at least 18 years of age, have a valid U.S. Social Security Number and provide a physical U.S. residential address. Follow these steps:

  1. Click on “Open an Account.”
  2. Set up a login and password.
  3. Provide an email address.
  4. Upload a government-issued photo ID.
  5. Enter your Social Security number.
  6. Providing a U.S. residential address.
  7. Answer some questions to verify your identity.
  8. Funding your account by setting up a transfer using a current bank account and routing number.

Fees

You won’t have to worry about many bank charges such as overdraft fees when you bank with Bread Savings. There are no monthly maintenance, ACH or incoming wire transfer fees. The bank claims it charges few fees — and if they do, they’re transparent about it. The only charges are for: 

  • Outgoing Wire Transfer: $25
  • Official check request: $15
  • Paper statement: $5

Banks vs. Competitors

Bread Savings is a good option when you need to establish an emergency savings fund or you’d like to save for a down payment on a home. But how does it highly-focused banking services compare to other similar banks?

Bank Best For
Bread Savings Higher-earning CDs
Ally Bank Interest-earning checking and savings accounts
Vio Higher-yield savings account
Marcus by Goldman Sachs The flexibility of savings and loans in one place

Bread Savings vs. Ally Bank

Bread Savings is a solid low-fee savings account contender but falls short in the breadth of products. If you’re in search of a place to deposit your money that offers both low-fee, interest-bearing checking and savings, Ally Bank is the better option. 

Bread Savings vs. Vio Bank

Vio Bank provides a similar product to Bread Savings. If you had to choose between the two, Vio Bank’s savings rate is slightly lower at 0.50% vs. Bread Savings’ % APY. For CDs, Bread Savings also pays more in interest.

Bread Savings vs. Marcus by Goldman Sachs

Bread Savings’ high-yield savings account pays higher interest than Marcus’ current 0.70% APY. One advantage Marcus has over Bread Savings is its loan offerings. Marcus offers $0 fee unsecured personal loans of $3,500 to $40,000. Depending on your credit score, fixed rates are between 6.99% and 19.99% APR for three to six-year terms.

Final Take

There are plenty of good reasons to separate your checking and savings accounts. One of the main reasons may be simply to avoid spending the funds if you had easy access. Bread Savings’ savings and CDs are high-yield and only allow for limited transfers each month. There are no monthly maintenance fees — open more than one account to save for different goals. And best of all, opening an account is simple and can be done in just a few minutes to get to your savings goals faster.

Bread Savings FAQ

Here are the answers to some commonly asked questions about Bread Savings.
  • Are Bread Savings and Comenity Capital Bank the same?
    • Both Bread Savings and Comenity Capital are Comenity companies. Savings accounts and CDs are available through Bread Savings, a brand of Comenity Capital Bank.
  • Is Bread Savings FDIC insured?
  • Does Bread Savings offer free money for signing up for an account?
    • Many banks provide enticing cash bonuses to earn your business. Bread Savings does not offer any cash signup bonuses at this time.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Dec. 22, 2021.

Comenity Direct rebranded to Bread Savings in April 2022. Rates affected by rebranding may be out of date.

Editorial Note: This content is not provided by Bread Savings. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Bread Savings.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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About the Author

Cynthia Paez Bowman is a personal finance writer with degrees from American University in international business and journalism. Besides writing about personal finance, she writes about real estate, interior design and architecture. Her work has been featured in MSN, Brex, Freshome, MyMove, Emirates’ Open Skies magazine and more.

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