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Bread Savings Review 2023: Competitive rates on high-yield savings and CDs, but no checking or money market accounts

November 29, 2022, 5:25 PM UTC
Updated January 30, 2023, 7:28 PM UTC
Illustration of the Bread Savings Bank logo surrounded by a green and blue frame.
Bread Savings offers competitive rates on high-yield savings and CDs, but no checking or money market accounts.
Illustration by Fortune; Original logo by Bread Savings

Bread Savings is an online-only bank that’s part of the Ohio-based financial services company Bread Financial. The bank offers just two types of deposit accounts: high-yield savings with a competitive 4.00% APY and certificates of deposit (CD) featuring an APY of up to 4.50%. The lack of account options offered by Bread Savings is likely to be a challenge for some potential customers, though the high APY on its accounts may outweigh that drawback for some.

Bread Savings does not have any brick-and-mortar locations, but its customer service hours for phone inquiries are weekdays from 7 a.m. CST to 9 p.m. CST. Representatives can also be reached on weekends between 9 a.m. CST and 5 p.m. CST.

All deposits with Bread Savings are FDIC-insured up to $250,000 per customer. Rates and fees are current as of November 28 and are subject to change. 

Bread Savings offerings 

Bread Savings offers high-yield savings and CDs with limited fees, including no monthly maintenance fees.

High-yield savings account 

Bread high-yield savings

  • APY: 4.00%
  • Fees:
    • Monthly maintenance fee: $0
    • ACH transfers: $0
    • Incoming wire transfers: $0
    • Outgoing wire transfer: $25
    • Official check request: $15
    • Paper statement request: $5
  • Minimum opening deposit: $100
  • Minimum required balance: While the bank encourages customers to maintain at least $100 in the account in order to take advantage of interest-earning potential, there is no penalty for falling below that balance.

The APY on the high-yield savings is a variable rate and may increase or decrease with changes in the market. It’s also important to note that Bread Savings does not offer debit cards and checks in association with its savings accounts because the accounts are not intended to provide frequent withdrawals. There’s a maximum deposit limit of $1 million per account and $10 million limit per customer.

Certificates of deposit

  • APY: 
    • 1-year: 4.50%
    • 2-year: 4.50%
    • 3-year: 4.50%
    • 4-year: 4.50%
    • 5-year: 4.50%
  • Fees:
    • Monthly maintenance: $0
    • Outgoing wire transfer: $25
    • Official check request: $15
    • Paper statement request: $5
  • Early withdrawal penalty:
    • Terms shorter than 1 year: 90 days’ simple interest
    • Terms 12 months to 3 years: 180 days’ simple interest
    • Terms 4 years and up: 365 days’ simple interest
  • Minimum opening deposit: $1,500

Once a CD is opened with Bread Savings, funds may only be added at the maturity date, during which you have a 10-day window to make additional contributions. In addition, there’s a 10-day window to withdraw the funds or close the CD without penalty at its maturity date. CDs automatically renew at the maturity day if funds are not withdrawn. 

Other services Bread Savings offers 

While Bread Savings does not offer any other services, Bread Financial, its parent company, does provide some additional options.

  • Bread loans: Bread offers loans of up to $35,000 with no origination fees. Interest rates are as low as 6.99%. Loan terms are 24 to 72 months.
  • Bread Buy Now Pay Later: Bread Financial also offers a buy now, pay later service that can be used by customers when shopping online or in a store. This service offers installment payments for purchases with interest as low as 0%.
  • Bread Cashback Credit Card: Bread’s cashback card offers unlimited 2% cash back on purchases. There are no rewards caps or opt-in requirements and there’s no annual fee associated with the card.

Bread Savings platform and customer support 

The Bread Savings mobile app allows customers to make deposits and withdrawals as well as check balances and contact customer service representatives.

Customer service representatives can be reached seven days a week via phone. They are available weekdays from 7 a.m. CST to 9 p.m. CST. Representatives can also be reached on weekends between 9 a.m. CST and 5 p.m. CST. Messages can also be sent to the bank through its secure online platform or mailed to its Columbus, Ohio offices.

Pros and cons of Bread Savings

As with any bank, there are pros and cons to keep in mind if you’re considering Bread Savings.

Pro: Competitive APY on savings and CDs: Bread savings offers a generous 4.00% APY, while its CD APYs go up to 4.50%.

Pro: Minimal fees: Bread Savings keeps the account fees to a minimum for both its savings and CDs. There are no monthly maintenance fees; ACH transfers and incoming wire transfers are free on both accounts. 

Con: Limited account options. The most obvious drawback with Bread Savings is that the bank only offers two types of accounts, which may not be suitable for all types of customers.
Con: No brick-and-mortar locations. As with other online-only banks, there are no physical branches you can visit as a Bread Savings customer.
Con: High initial deposit requirement for CDs. In order to open a CD, a $1,500 minimum deposit is required.
Con: No debit card or checks with savings accounts. Access to funds in a savings account is limited. Money must be transferred out of the account to another linked bank account.

Frequently asked questions

Is Bread Savings a legitimate bank?

Yes, Bread Savings is an FDIC-insured bank.

How do I withdraw money from Bread Savings?

Debit cards and checks are not available with Bread’s high-yield savings. Money must be transferred to a linked bank account. 

What do I need to open a Bread Savings account?

In order to open a Bread Savings account, you must be at least 18 years old, be a United States citizen or resident alien, and have a valid U.S. government-issued Social Security number and a U.S. address. A minimum deposit of $100 is also required.

Does Bread Savings have a money market account?

No, Bread Savings doesn’t offer money market accounts.

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