Introduction
In the ever-evolving landscape of online banking, Bread Savings bank, formerly known as Comenity Direct, has emerged as a promising choice for individuals seeking above-average savings returns. In this comprehensive review, we will delve into the key highlights, account options, fees, pros and cons, and much more, to help you make an informed decision about your financial future.
Key Highlights
High APY
Bread Savings bank prides itself on offering a highly competitive Annual Percentage Yield (APY), ensuring that your money can grow at an impressive rate.
Low Fees
One of the standout features of Bread Savings bank is its minimal fee structure. There are no monthly maintenance fees, ACH transfer fees, or incoming wire transfer fees for both savings and CD accounts.
Compare Offers
Bread Savings bank gives you the opportunity to evaluate various offers, ensuring that you can make a well-informed decision tailored to your financial needs.
The Savings Account Unveiled
Savings Account
- APY: 4.50%
- As of: September 24, 2023
- Rating: 5 stars out of 5
- Minimum Balance for APY: $0
Bread Savings’ high-yield savings account boasts an impressive 4.50% APY, making it an enticing option for those looking to maximize their savings.
Exploring Bread Savings
In April 2022, Comenity Direct underwent a transformation and became Bread Savings. This exclusively online bank offers a competitive savings account and a variety of CD options with attractive yields. Notably, they maintain low minimum opening balance requirements, simplifying the account setup process.
Pros
- Since the Federal Reserve initiated interest rate hikes in 2022, Bread Savings has consistently ranked among the most competitive institutions, offering attractive savings and CD yields.
- The high-yield savings account comes with no monthly fees.
Cons
- Cash deposits are not accepted.
- Bread Savings does not operate physical branches or ATMs.
- The bank has a limited portfolio of financial products.
Bread Savings Banking Products
Savings
Bread Savings Overview:
- Rating: 4.9 out of 5
- 5.00% APY
- $0 minimum deposit to open
Bread Savings presents a high-yield savings account with a competitive APY. With a modest minimum deposit requirement of just $100 and no monthly maintenance fees, it’s a user-friendly choice. However, please note that Bread Savings doesn’t offer ATM access, and deposits are facilitated through ACH transfers. Additionally, the bank’s mobile app enables check deposits for added convenience.
Pros
- The account offers a highly competitive yield.
- The minimum deposit requirement for the high-yield savings account is only $100.
- There are no monthly maintenance fees.
Cons
- The Bread Savings High-Yield savings account does not provide ATM access.
- Bread Savings imposes a $15 fee for official bank checks and a $25 fee for outgoing wire transfers.
- Cash deposits are not accepted.
CDs
Bread Savings CD Overview:
- Finance Devil Rating: 4.3 out of 5
- 4.50% – 5.50% APY
- $1,500 minimum deposit to open
- 1 year – 5 years
Bread Savings offers CDs with terms spanning one year to five years, all offering more favorable yields compared to traditional brick-and-mortar banks. The minimum deposit requirement for these CDs is $1,500. Please note that specialty CDs, such as no-penalty or bump-up CDs, are not available.
Pros
- Bread Savings CD rates are competitive.
- There are no monthly maintenance fees.
- The bank offers a variety of CD terms.
Cons
- Specialty CDs are not part of their product offering.
- Some other banks have lower minimum deposit requirements for CDs.
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Bread Savings Review 2023: Maximizing Savings
With Bread Savings, your financial aspirations find a deserving ally. Although this online bank offers just two account types, the potential for savings is immense. Their high-yield savings account, boasting a remarkable 5.00% APY, and an array of CDs offering APYs up to 5.35%, make it a compelling choice.
The Power of High APYs
Bread Savings ensures APYs exceeding 4%, allowing you to maximize your earnings. You can open an account with as little as $100, and there are no monthly maintenance fees. However, please note that the high-yield savings account doesn’t include ATM access, and the bank charges a fee for official bank checks and outgoing wire transfers.
Embracing the World of CDs
Bread Savings offers a diverse range of CDs with competitive APYs. The minimum deposit requirement is $1,500, and you can choose from terms ranging from one year to five years. Unfortunately, specialty CDs, such as no-penalty or bump-up CDs, are not available.
Savings Account
- APY: 4.50%
- As of: September 24, 2023
- Rating: 5 stars out of 5
- Minimum Balance for APY: $0
Let’s Look Into Bread Savings’ Fees
Bread Savings only charges fees for outgoing wire transfers ($25), official bank checks ($15 each time you need one), and for paper statements ($5 per paper statement inquiry), according to Bread Savings’ website.
- Overdraft Fee: None
- Non-sufficient Funds Fees: None
- Monthly Maintenance Fees: None
- Out-of-Network ATM Fee: None
- Excessive Transaction Fee: None
- Paper Statements: $5 per paper statement request
A Closer Look at Bread Savings (formerly Comenity Direct)
Bread Savings is an online banking institution renowned for its high-yield savings account and a range of CDs. These financial products were originally introduced under the name Comenity Direct in 2019, and the transition to Bread Savings took place in April 2022.
The Banking Experience
While Bread Savings operates without physical branches, it ensures accessibility through online chat and telephone customer support on weekdays from 7 a.m. to 9 p.m. Central, and weekends from 9 a.m. to 5 p.m. The Bread Savings mobile app is highly rated on the Apple App Store, offering essential features like mobile check deposits and fund transfers.
Bread Savings vs. Capital One Bank
Comparing Bread Savings with Capital One Bank reveals distinct differences. While Capital One offers a broader spectrum of banking products, Bread Savings stands out for its superior yields. Furthermore, Bread Savings requires a minimum deposit of $1,500 for CDs, whereas Capital One doesn’t impose a minimum requirement.
Pros and Cons of Bread Savings
When considering a financial institution for your savings, it’s essential to weigh the pros and cons to make an informed decision that aligns with your financial goals. While the bank offers competitive APYs on savings and CDs and maintains minimal fees, it has limited account options and lacks physical branches. Additionally, the $1,500 minimum deposit requirement for CDs may not be suitable for all savers. Furthermore, the high-yield savings account doesn’t provide debit cards or checks, making it imperative to plan your withdrawals in advance. Bread Savings presents several advantages, including competitive yields and minimal fees. However, it’s crucial to keep in mind that this bank has some limitations, such as the absence of physical branches and a minimum deposit requirement for CDs.
Pros
- Competitive APY: Bread Savings stands out for its competitive Annual Percentage Yields (APYs) on both savings accounts and CDs. With APYs exceeding 5%, your money can grow at an impressive rate.
- Minimal Fees: One of the most attractive features of Bread Savings is its minimal fee structure. There are no monthly maintenance fees, ACH transfer fees, or incoming wire transfer fees for both savings and CD accounts.
- User-Friendly: With a user-friendly online platform and a highly-rated mobile app, Bread Savings offers convenient banking services. You can easily manage your accounts, make mobile check deposits, and transfer funds with ease.
Cons
- Limited Account Options: Bread Savings primarily offers two types of accounts – savings accounts and CDs. If you’re looking for a broader range of banking products, you might need to explore other institutions.
- Lack of Physical Branches: For those who prefer in-person banking, Bread Savings might not be the right fit. They do not operate physical branches or ATMs.
- Minimum CD Deposit: While Bread Savings provides competitive CD rates, the minimum deposit requirement of $1,500 for CDs might be a barrier for some savers. Other banks may offer lower minimum deposit options.
- No Debit Cards or Checks: The high-yield savings account at Bread Savings does not provide ATM access, debit cards, or check-writing capabilities. This means you’ll need to plan your withdrawals and transfers in advance.
To Recap
In conclusion, Bread Savings, formerly known as Comenity Direct, is an online banking institution that can significantly boost your savings. With competitive APYs on both savings accounts and CDs, this bank is an attractive option for those looking to grow their money effectively. The absence of monthly fees and the convenience of mobile banking make it a user-friendly choice. However, it’s important to consider the limitations, such as the lack of physical branches and a minimum deposit requirement for CDs. This may not suit everyone’s banking preferences. It’s essential to assess your individual financial needs and goals to determine if Bread Savings is the right fit for you.
Remember that the key to successful financial management is making informed choices, and Bread Savings is undoubtedly a strong contender in the world of online banking.
Bread Savings FAQs
1. Who Is Bread Savings Best For?
Bread Savings caters to individuals seeking competitive yields on CDs and savings accounts. It’s an excellent choice for those with a minimum of $1,500 for CDs or at least $100 to open a high-yield savings account.
2. Is Bread Savings Safe?
Bread Savings is offered by Comenity Bank, a Federal Deposit Insurance Corp. (FDIC) insured bank. The FDIC lists Bread Savings on its website, affirming its FDIC insurance.
3. Is Bread Savings a Legitimate Bank?
Despite the recent introduction of the Bread Savings name in 2022, the bank has roots dating back to 1989 through Comenity Bank, a member FDIC institution.
4. How Does Bread Savings Compare to Other Online Banks?
Bread Savings is known for its competitive APYs and minimal fees. However, it’s essential to compare it to other online banks to ensure it aligns with your financial goals.
5. Can I Access Bread Savings’ Customer Support on Weekends?
Yes, Bread Savings offers online chat and telephone customer support on weekends, ensuring you can reach out for assistance when it’s most convenient for you.
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