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Bread Savings Account Review: Save More With a Stellar APY

Review Updated
David Chang, ChFC®, CLU®
Author: David Chang, ChFC®, CLU®
David Chang, ChFC®, CLU®
David Chang, ChFC®, CLU®
Writer, Consultant

David S. Chang, ChFC®, CLU® is an award-winning entrepreneur, keynote speaker, author, and consultant. He has over two decades of experience in the wealth management space and has been featured in dozens of news, radio, and podcast programs nationwide. He currently works as Head of IoT for the West Region of a Fortune 200 company. He is a graduate of the United States Military Academy at West Point and currently a Lieutenant Colonel in the California Army National Guard. He is an East-West Graduate Degree Fellow and has an MBA from the UCLA Anderson School of Management.

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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.

The Bread Savings account has one of the highest annual percentage yields (APYs) that we've found. The Bread Savings account is best for those who want a competitive APY that is FDIC insured, and are comfortable with online banking.

In this expert review, we'll cover the Bread Savings account and help you decide if this savings account is right for you.

Ratings Methodology
Rates as of Dec 20, 2024

Bread Savings

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
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

Bread Savings interest rate

Account APY Minimum Deposit
Bread Savings 4.50% $100
Data source: Bread Financial.

Bread Financial's high-yield savings account earns a very high rate, meaning generous returns on your saved cash. You will need $100 to open the account, however -- but won't be penalized if your balance falls before that.

Full Bread Savings account review

Top perks

High APY: APY is an important factor when choosing a high-yield savings account. The Bread Savings account earns one of the highest APYs offered by any financial institution that we've found. In addition, when you transfer money into your new account from another bank, your Bread Savings account will immediately start earning a high APY.

No monthly service fees: There are no monthly account maintenance fees, ACH transfer fees, or fees for incoming wire transfers.

No minimum balance: You won't be charged a fee if you fall below the account opening minimum.

What could be improved

$100 minimum opening balance is required: To take advantage of the high APY, you will need to maintain the $100 minimum balance in your savings account that was required at account opening.

No physical branch access: Bread Financial is an online-only bank with no physical branches. Bread may not be the best fit for you if you prefer to bank in person.

No debit card: Debit cards and checks aren't offered because a Bread Savings account isn't designed for frequent withdrawals.

How to access your money

Bread currently has no physical branches, but you can fund your account and withdraw money quickly and easily in a few different ways.

Deposit options

There are several ways to fund your account. Funds can be deposited into a Bread Savings account via standard ACH transaction or wire transfer. ACH transfers can be initiated online or through the app.

Customers can also link an external account and initiate an ACH transfer. They can also fund their Bread Savings account by having their payroll provider set up direct deposit and automatically receive their paycheck on payday.

Withdrawal options

To access the funds in a Bread Savings account, account holders can initiate an ACH transfer to a linked external bank account via the account dashboard in the Bread website or mobile app.

There is a $25 outgoing wire transfer fee and $15 fee for each official check. Bread does not offer a debit card or regular checks for account holders.

Bread Savings is right for you if:

  • You want a competitive APY.
  • You're comfortable with online banking.
  • You want an account without monthly or transfer fees.
  • You have more than $100 to save.

Read more about Bread Financial

Our savings account methodology

At Motley Fool Money, we rate savings accounts on a five-star scale (1 = poor, 5 = best). We evaluate all savings accounts across four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum requirements, and perks that really make a difference -- think ATM access, linked checking accounts, or even branch access.

Our scores are weighted as:

  • APY: 50%
  • Brand and reputation: 20%
  • Fees and minimums: 15%
  • Other perks: 15%

Learn more about how Motley Fool Money rates bank accounts.

FAQs

  • Bread Financial is a fintech company that offers the Bread High-Yield Savings account through Comenity Capital Bank, which is part of Bread Financial. Accounts at Bread are FDIC insured.

  • Bread doesn't have brick-and-mortar locations and is fully online. Its low overhead is what allows it to offer highly competitive rates.

  • Bread is an online-only bank that doesn't have brick-and-mortar locations.