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Bread Financial Review: A Lot More Than Credit Cards

Review Updated
Steven Porrello
Author: Steven Porrello
Steven Porrello
Steven Porrello
Writer

Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.

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Ashley Maready
Reviewer: Ashley Maready
Ashley Maready
Ashley Maready
Writer and Editor

Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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Nathan Alderman
Fact Checked: Nathan Alderman
Nathan Alderman
Nathan Alderman
Fact checker

Nathan Alderman has been a full-time Motley Fool employee since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As Motley Fool Money's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.
Offer image for
Member FDIC.

Bread Financial

Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

Bread Financial is worth a look if you want a high interest rate on your extra cash. It offers high APYs on savings accounts and CDs, with reasonable deposit requirements. But Bread Financial doesn't have checking accounts, so you will need to use another bank to get cash when you need it.

Pros
  • High APYs
  • Reasonable minimum deposits
  • Unlimited mobile check deposits
  • Online account management tools
Cons
  • No checking accounts
  • No way to get cash directly out of the bank

  • Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

    These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

    We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

    Learn more about how The Motley Fool Ascent rates bank accounts.

Is Bread Financial right for you?

Bread Financial is right for you if:

  • You want to earn a high APY on your savings.
  • You're comfortable transferring money to another bank when you need cash.
  • You're open to using longer-term CDs.

Bank fees

Bread Financial Fee Charge
Monthly maintenance fee $0
Outgoing wire transfers $25
Paper statement requests $5
Official check requests $15
Data source: Bread Financial

Savings accounts

Bread Financial offers a single type of savings account -- the Bread Savings account. The Bread Savings account has a reasonable opening deposit requirement of just $100. In addition, its 4.50% APY is comparable to that of some top online banks we've reviewed.

The account has no monthly maintenance fee. You can also make unlimited ACH transfers and mobile check deposits.

One limitation of the Bread Savings account is that it doesn't offer ATM card access, so there's no way to get cash directly out of the account -- this is typical of most online savings accounts. However, because Bread Financial doesn't offer a checking account, be prepared to transfer funds to another bank first when you need to withdraw cash from your Bread Savings balance.

Ratings Methodology
Rates as of Dec 20, 2024

Bread Savings

Read Review
Member FDIC.
Rating image, 3.75 out of 5 stars.
3.75/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 3.75 out of 5 stars.
3.75/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Read Review
APY
4.50%
Min. To Earn APY
$100
  • No monthly service fees
  • Competitive rate
  • Free incoming domestic wire transfers
  • No ATM network
  • Must transfer money to another bank to access savings
  • No checking account

Bread Financial is worth checking out if you want a high interest rate on your savings. Its high APYs on savings accounts and CDs as well as reasonable deposit requirements make the bank appealing to those with high or low balances. But you will need a checking account elsewhere to get cash when you need it.

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
3.80%
Rate info Circle with letter I in it. 3.80% annual percentage yield as of December 28, 2024. Terms apply.
Min. to earn: $0
N/A
Open Account for American Express® High Yield Savings

On American Express's Secure Website.

up to 4.00%²
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
3.80%
Rate info Circle with letter I in it. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A

Certificates of deposit

Bread Savings CDs have competitive APYs and terms from three months to five years. Bread Savings CD APYs are as high (or higher than) some of the best CD rates.

The minimum deposit requirement for Bread Savings CDs is $1,500. This is not unreasonable, but it's a little higher than what you might find at other banks. You'll need a substantial sum to start with if you plan to build a CD ladder.

Plus, Bread Savings CDs charge early withdrawal penalties and your CD auto-renews at maturity unless you tell the bank you'd like to cash out.

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer image for Bread Savings CD
Bread Savings CD
Bottom Line

Bread Savings CDs are available in many of the most popular terms, making this a flexible high-yield CD account to consider for various financial goals. There's also no monthly maintenance fee. But the $1,500 minimum deposit for Bread Savings CDs is a little steeper than some of its competitors require.

MINIMUM DEPOSIT $1,500
Read Review
3 Mo. APY 6 Mo. APY 9 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 3 Yr. APY 4 Yr. APY 5 Yr. APY
3.80% 4.75% 3.80% 4.30% 3.80% 3.85% 3.50% 3.50% 3.50%

Compare CD rates

Rates as of Dec. 18, 2024
Bank & CD Offer APY Term Min. Deposit Next Steps
APY: 4.00% Term: 1 Year Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

Member FDIC.
APY: 4.25% Term: 10 Months Min. Deposit:  $2,500
Open Account for

On Secure Website.

Member FDIC.
APY: 4.25% Term: 6 Months Min. Deposit:  $500
Open Account for

On Secure Website.

Customer experience

When choosing an online bank for a high-yield savings account or CD, customer service might not be top of mind. But it's still good to know how each bank stacks up. Let's see how Bread Financial ranks in customer experience.

Customer reviews

Bread Financial is better known for its credit cards than its banking services, so there aren't a lot of reviews of its savings accounts and CDs. The bank has an A+ rating with the Better Business Bureau, but it gets low ratings based on customer reviews (1.08 stars out of 5 stars) and is not BBB accredited. Bread Financial also gets low ratings on Trustpilot, with only 1.5 stars out of 5 stars based on customer reviews.

Many banks and financial institutions get mixed reviews from online sites like bbb.org and Trustpilot. This doesn't always mean the bank has bad service -- banks have lots of customers, and only a small number of them post online complaints.

If you just want the best APYs for your money, customer service from an online bank might be less important to you. But in case you need to contact Bread Financial customer service about your Bread Savings high-yield savings account or CD, here's how:

  • Phone: Call the Bread Financial Customer Care team at (833) 755-4354. Hours are Monday-Friday from 7 a.m. to 9 p.m. Central Time (CT), Saturday-Sunday from 9 a.m. to 5 p.m. CT, and some holidays from 9 a.m. to 5 p.m. CT.
  • Secure message: You can send a secure message to the Customer Care from within the Bread Financial online portal.

Mobile app

Bread Savings has a special mobile banking app that's dedicated to its savings accounts and CDs. Be aware that this app is different from the Bread Financial app that is used for managing credit card accounts -- be careful not to download the wrong app.

With the Bread Savings app, you can manage all aspects of your Bread Savings high-yield savings account or Bread Savings CD, including:

  • Log in to your accounts with PIN or TouchID authentication
  • View your account balances
  • Transfer money to linked accounts
  • Deposit money with mobile check deposit
  • Contact Bread Savings Customer Care

The Bread Savings mobile app is available for iOS and Android devices. It gets highly favorable reviews, with slightly better ratings from iOS users:

  • App Store rating: 4.6 out of 5 stars
  • Google Play rating: 4.1 out of 5 stars

Physical locations

Bread Financial is a 100% online bank, so it does not offer physical locations or traditional bank branches. But most savings account and CD customers don't need branches. You can contact Bread Savings customer service by phone or via the mobile app, you can add money to your account with online transfers or mobile check deposit, and you can withdraw cash after moving money to a different bank with a linked external account.

How does Bread Financial compare?

Bread has highly competitive APYs on savings accounts and CDs, but if you want a checking account or a bank that can serve as your "home base" for everyday spending and paying bills, Bread Financial is not the best choice. Here are a couple other banks that you should consider.

Bread Financial vs. Discover® Bank

If you want an online bank that's more than just credit cards, CDs, and savings accounts, try Discover® Bank. This bank offers highly competitive APYs with its Discover® Online Savings account and CDs. And while Discover is well-known for its selection of great credit cards, it also offers the customer-friendly Discover® Cashback Debit account, an innovative rewards checking account for your everyday finances.

Bread Financial vs. Capital One

If you're not 100% comfortable doing all your banking online, Capital One can be a good alternative to Bread Financial. Capital One's bank branches and Capital One Cafes can give you the reassurance of in-person banking at a brick-and-mortar bank, while still offering highly competitive APYs on savings accounts and CDs. And unlike Bread Financial, Capital One offers checking accounts and other products for full-service banking.

FAQs

  • Yes, Bread Financial is a legitimate financial institution with more than 35 years of history. Its deposit account products (like savings accounts and CDs) are provided through Comenity Capital Bank, a Utah-based bank that is an FDIC member.

  • Bread Financial was formerly called Alliance Data, while Bread Savings was formerly called Comenity Direct. The name changes happened in early 2022, after the fintech company decided to unify all its market-facing brands and bring greater simplicity to its products.

  • Yes, Bread Financial's Bread Savings accounts (savings and CDs) are FDIC-insured bank accounts. With a Bread Savings account or Bread Savings CD, your money is protected against bank failure up to $250,000 per depositor for each ownership category.