Don’t loaf around when it comes to saving money—Bread Savings is an online savings account with competitive CD rates designed to help your dough rise. But you need at least $1,500 to open an account, which is a higher minimum than some online banks require.
Here’s an overview of Bread Savings Certificate of Deposit rates. Rates are accurate as of October 11, 2024.
| CD Term | Annual Percentage Yield (APY) | Minimum Deposit |
|---|---|---|
| 3 Months | 3.80% | $1,500 |
| 6 Months | 4.75% | $1,500 |
| 9 Months | 3.80% | $1,500 |
| 12 Months | 4.30% | $1,500 |
| 18 Months | 3.80% | $1,500 |
| 24 Months | 3.85% | $1,500 |
| 36 Months | 3.50% | $1,500 |
| 48 Months | 3.50% | $1,500 |
| 60 Months | 3.50% | $1,500 |
Overview of Bread Savings CDs
Bread Savings CDs have high yields that compete with most online banks. Interest compounds daily and arrives in your account monthly. Unlike most CD providers, Bread lets you withdraw interest at any time without penalty. So if you want to use your earnings before your CD matures, you can. However, early withdrawal penalties apply if you withdraw any of your principal, which is the original deposit you made into the account.
Like most CDs, there are no monthly maintenance fees, but you’ll pay $5 for paper statements, $15 for official check requests and $25 for outgoing wire transfers.
Bread Savings also increases your rate when you renew a one-, two- or three-year CD for another term. The increase tends to be around 0.05% APY, so if you’re earning 4.30% APY on a one-year CD, your renewal rate may be slightly higher.
Bread Savings CDs have the standard $250,000 in FDIC insurance. But unlike most banks, Bread limits the amount of deposits it will accept. No individual customer can have more than $1 million in a single Bread Savings account or more than $10 million deposited across multiple accounts.
Overview of Bread Savings CDs
| Overview | Details |
|---|---|
| Minimum Deposit | $1,500 |
| Term Lengths | 3, 6, 9, 12, 18, 24, 36, 48 and 60 months |
| Compounding Schedule | Daily |
| Early Withdrawal Penalty | 180 days’ simple interest for CD terms between 1 year and 3 years; 365 days’ simple interest for CD terms of 4 years or longer. |
| Grace Period for Penalty-Free Withdrawals After Maturity | 10 days |
How Much Can You Earn With Bread Savings CD Rates?
CDs can be a great way to grow your savings because they have fixed interest rates that stay the same throughout your term. This makes it easy to calculate exactly how much interest you’ll earn.
The amount of interest you’ll earn on a Bread Savings CD depends on the term you choose. Use our CD calculator to find out what you could earn with Bread’s CD rates.
How Bread Savings CDs Compare
Bread’s CD rates today are some of the best you’ll find. They’re much higher than the national average for CD rates. For instance, the current national average rate on a one-year CD is 1.81% as of October 21, 2024, according to data from the FDIC. The biggest downside is that you need at least $1,500 to open an account with Bread. For comparison, you don’t need any opening deposit to score some of the best CD rates at other banks.
The higher your CD’s APY, the more interest you’ll earn over time. Make sure you’re earning the highest rate possible by comparing rates at several banks and credit unions.
Find The Best CD Rates Of 2024
About Bread Savings
Bread Savings accounts are offered by Comenity Capital Bank—a Utah-based provider of co-branded and private-label credit cards—which is itself a division of Bread Financial. It offers one high-yield savings account and a range of high-yield CD terms. You can open either type of account online in minutes, and there are no monthly maintenance fees.
The Bread Savings High-Yield Savings Account currently earns 4.75% APY and has a $100 minimum opening deposit, which is significantly lower than the $1,500 opening deposit needed for a CD. If you want the option to dip into your savings whenever you need it, going with a savings account over a CD can be a good call. But if you want to lock in an interest rate that doesn’t change over time, a CD may be the way to go.
Bread Savings doesn’t offer any checking accounts.
Frequently Asked Questions (FAQs)
What are current CD rates at Bread Savings?
Bread Savings currently offers these CD rates: 4.30% for a one-year CD, 3.85% for a two-year CD, 3.50% on a three-year CD and 3.50% on a four- or five-year CD. Bread Savings CD rates today consistently rank among the top CD rates in the nation.
Are Bread Savings CDs FDIC insured?
Yes, Bread Savings CDs are FDIC-insured up to $250,000 through Comenity Capital Bank, which is owned by Bread Financial. This insurance means you’d get your money back, up to the legal limit, if the bank were to close or fail.
Is a Bread Savings CD legit?
Yes, Bread Savings CDs are a legitimate financial product designed to help you earn a fixed rate of return on your savings. If you know you won’t need to access part of your savings for at least one to five years, putting it in a CD could be a recipe for financial success.
What is the penalty for taking money out of a Bread Savings Bank CD?
If you only want to withdraw earned interest from a Bread Savings CD, there is no penalty. You can do this at any time, even before your CD matures. But if you need to withdraw any of your principal balance, you’ll pay a penalty equal to 180 days’ interest on one- to three-year CD terms, and 365 days’ interest on four- and five-year CD terms.
