Bread Savings (Comenity Direct) Review

With bond rates falling close to zero, savings account interest rates have followed. 

Rates over 1.00% APY used to be common for savings accounts. But those days are long gone. Nowadays, most high-yield savings accounts have interest rates just under 0.50% APY.

With an 4.50% APY on its savings account product, Bread Savings, formerly known as Comenity Direct, is one such bank that would now be considered a high-yield option. And if you want even a little more interest, you can open a 1- to 5-year CD to get an APY of 0.65% to 1.10%. In this article, we’ll go into detail on Bread's savings and CD products.

Who Is Bread Savings?

Comenity Direct rebranded as Bread Savings and is a product of Comenity Capital Bank—now a part of Bread Financial. It provides retailers with co-branded and private-label business cards. It is based in Utah.

What Does It Offer?

If you're looking for a bank that can provide an all-in-one checking and savings solution, Bread won't be right for you. It only offers savings products.

However, if you're looking to earn a higher yield on your emergency fund, Bread could be a great choice. Below, we break down what its savings account and CDs have to offer.

High Yield Savings Account

The current APY on Bread's high-yield savings account is 4.50% APY. Bread also says that it constantly monitors the top rates offered across the banking industry. 

If other high-yield accounts raise their rates, Bread says that it will raise theirs as well to make sure you're always getting one of the best yields available. In this way, Bread is essentially promising to do the work of rate-shopping for you, and on a regular basis.

There is a $100 minimum to open a savings account and the maximum is $10 million. Interest is accrued and compounded daily and paid out monthly. 

Certificate of Deposit

If you can leave your money on deposit for at least a year, you’ll get paid a little more for your troubles. There are five different CD terms offered by Bread. The longer the term, the higher the rate:

• 1-year: 0.65% APY
• 2-year: 0.75% APY
• 3-year: 1.00% APY
• 4-year: 1.05% APY
• 5-year: 1.10% APY

See how these rates compare to the top CD accounts here >>

There is a $1,500 minimum deposit to open a CD. Once again, the maximum is $10 million. Interest is accrued and compounded daily and paid out monthly. 

At the end of its maturity, each CD will automatically renew. However, you can elect to withdraw all of your funds without penalty within a 10-day grace period.

Are There Any Fees?

Bread Savings is a great banking option for savers who are looking to avoid fees. It doesn't charge any monthly maintenance fees on its savings or CD products with no minimum balance requirements. 

ACH and incoming wire transfers are also free. The only fees that customers could potentially incur are:

• Outgoing wire transfer: $25
• Paper check request: $15
• Paper statement request: $5

How Does Bread Savings Compare?

If you're only looking for a place to park your savings at a high yield, Bread could be a great choice. See how they compare to other top savings accounts here.

If you prefer to have both your checking and savings accounts under the same roof, you'll want to look at other top online banks like Axos Bank or Ally Bank. Or you may even want to consider a top credit union such as Consumers Credit Union.

How Do I Open An Account?

You can visit the Bread Savings website to open an account. The process is handled completely online and Bread says that you can have your account up and running in minutes.

Is My Money Safe?

Yes, the savings account and CDs are both FDIC-insured. That means they're able to provide $250,000 of federal insurance protection per depositor. Learn how to protect deposits that exceed these limits.

How Do I Contact Bread Savings?

Customer service is available by phone at 1-833-755-4354 and through secure messaging in your online account. They are available on weekdays from 7 a.m. to 11 p.m. CT and on weekends and most holidays from 9 a.m. to 5 p.m. CT.

You can also mail them at:

Bread Savings
PO Box 182084
Columbus, OH 43218-2158

Is It Worth It?

In summary, yes, Bread Savings could well be worth it for its high-yield savings and CD products. Now that top APYs have fallen, Bread Savings' rates are well within the high-yield range. Plus, it has no monthly service fees and reasonable minimum deposit requirements.

However, Bread Savings is an online-only banking experience with no cards or ATM access. So if you prefer the convenience of having local branches in your area or you'll need to make cash and/or check transactions, you'll want to choose a different high-yield savings account. Check out our favorites!

Bread Savings Direct FAQs

Let's answer a few of the most common questions that people ask about Bread Savings:

How do I withdraw money from my Bread Savings account?

You'll need to initiate an ACH transfer to another bank account if you want to withdraw your funds. After your account has open for 30 days, you may also have the option to make a wire transfer withdrawal or to request an official check.

Is Bread Savings legit?

Yes, Bread Savings is a brand of Bread Financial.

Can I manage my Bread Savings account from my phone?

Yes, the bank's mobile app is available on the Apple App store and Google Play store.

Does Bread Savings have any penalty-free CDs?

No, all of their CD products will charge penalties for early withdrawals.

Bread Savings Features