Bread Savings Bank review: High rates for the modern saver

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With no minimum balance requirements, no monthly fees, and competitive rates, Bread Savings Bank can be appealing to those looking to accelerate their savings.

This online bank is an excellent choice for those looking for high rates and low fees and are comfortable with online-only banking. 

However, the limited product mix and lack of physical branches may be disadvantages for some. Here's what you need to know about Bread Savings and if it's the right choice for you. 

About Bread Savings 

Bread Savings is a part of Bread Financial, a financial services company offering various products and services.

As an online bank, Bread Savings Bank focuses on providing high-yield products to help customers grow their money faster than they would with traditional brick-and-mortar banks.

By eliminating the costs associated with maintaining physical branches, Bread Savings can offer competitive interest rates while keeping fees to a minimum. The bank's product lineup includes high-yield savings accounts and CDs. 

Bread Savings bank accounts 

Bread Savings High-Yield Savings Account

What to know:

• APY: 5.15% 
• Minimum deposit to open: $100
• Monthly maintenance fee: None 
• Minimum balance requirement: None 

Bread Savings Bank's High-Yield Savings Account is its flagship product. It offers a competitive rate that far surpasses the national average. With no minimum balance requirements or monthly maintenance fees, this account is an attractive option for all savers. 

Interest compounds daily with this account. Deposits must be made by ACH transfer or mobile check deposit, as there are no physical branches or an ATM network. 

Bread Savings CDs

What to know:

• APY: 4.15%-5.25% 
• Terms: 1-5 years 
• Minimum deposit to open: $1,500
• Monthly maintenance fee: None 

For savers looking to earn even higher returns, Bread Savings Bank offers a range of CD options. CDs are available in terms ranging from 1 year to 5 years. As of June 2024, rates were as follows: 

• 1-year CD: 5.25%
• 2-year CD: 4.65%
• 3-year CD: 4.25%
• 4-year CD: 4.15%
• 5-year CD: 4.15%

One unique perk of Bread Savings CDs is the ability to lock in a higher rate when you renew your CD for 1, 2, and 3-year CDs. 

It's important to note that, like most CDs, Bread Savings CDs are subject to early withdrawal penalties if you access your funds before the maturity date. 

Is Bread Savings a good bank to bank with? 

Bread Savings is a solid choice for those who want to earn some of the highest possible rates on their savings or CD funds. It’s also best for those who want to use an online bank and are comfortable managing their accounts online. 

However, Bread Savings may not be the best fit for everyone. You may want to consider other options if you want in-person banking, require ATM access, or need a wider range of financial products (such as checking accounts or loans). 

Bread Savings account fees 

One of Bread Savings Bank's standout features is its minimal fee structure. The bank does not charge monthly maintenance fees, minimum balance fees, or incoming wire transfer fees.

You’ll also get free ACH transfers and unlimited deposits via mobile check. However, there are a few fees to be aware of:

• $25 per outgoing wire transfer
• $15 per official check request
• $5 per paper statement request

While these fees are uncommon, it's important to remember them and keep enough money in your account to avoid unnecessary charges.

Bread Savings online and mobile banking experience 

As an online bank, Bread Savings Bank offers a robust digital banking experience. The bank's website is easy to navigate, allowing you to view account balances, transfer funds, and manage your accounts. 

The Bread Savings Bank mobile app, available for iOS and Android devices, offers a streamlined banking experience. With the app, customers can:

• Check account balances and transaction history
• Transfer funds between Bread Savings Bank accounts
• Schedule one-time or recurring transfers
• Contact customer support

The mobile app has solid reviews, with a 4.6/5 on the Apple App Store and 4/5 on Google Play. Customer feedback notes that the bank's online experience and app function well, and interest rates are solid. Some customers did express criticism over account withdrawal limits and being locked out of their accounts.

Bread Savings customer service 

Bread Savings Bank offers several channels for customer support, including:

• Phone support: Available Monday through Friday, 7 a.m. to 9 p.m. CT, and weekends from 9 a.m. to 5 p.m. CT
• Email support: Typically responded to within 1-2 business days
• Secure online messaging: Available through the online banking platform

While the bank does not offer 24/7 support, customers report positive experiences with customer service. Reviews cited knowledgeable representatives and prompt issue resolution.

How Bread Savings stacks up against the competition 

Want to know how Bread Savings Bank stacks up against the competition? Let's compare its high-yield savings account and CD rates to similar online banks. 

High-yield savings accounts 

As of June 2024, Bread Savings Bank's high-yield savings account APY is higher than similar online banks, though it does require a moderate minimum balance. 

Certificate of deposit 

Bread Savings Bank offers slightly higher CD rates than its competitors, particularly with its 1-year CD. However, it also has a higher minimum deposit requirement of $1,500, which may be a drawback for some.

When it comes to the overall experience, each online bank has its unique features:

• Ally Bank offers a more comprehensive suite of financial products, including checking accounts, investment options, and loans.
• Marcus by Goldman Sachs provides financial planning resources and same-day transfers of up to $100,000.
• Synchrony Bank offers a wider range of CD terms (up to 60 months) and an ATM card for its high-yield savings account.

Ultimately, the best online bank for you depends on your financial needs. While Bread Savings Bank offers competitive rates and a user-friendly platform, it may not be best if you need a broader range of financial products.

How we rated this bank 

Every bank review we publish has undergone a rigorous editorial process to ensure accuracy and objectivity.

We rate all financial institutions on a 10-point system, with 10 being the highest possible score and 1 being the lowest possible score. We assess each card across several key factors, weighted based on what our research shows matters most to readers like you. Learn more about our methodology here. 

Here are some of the factors that influenced this bank’s overall score: 

• Interest rates: Bread Savings Bank stands out for its competitive interest rates on its high-yield savings and CD accounts. The 5.15% APY on the savings account and the range of 4.15%-5.25% APY on CDs are among the highest in the market. 
• Fees: The bank also excels in its fee structure, with no monthly maintenance fees on savings or CD accounts. 
• Requirements: The $100 minimum deposit requirement is reasonable for a high-yield savings account. However, the $1,500 minimum deposit for CDs is higher than some competitors.
• Product mix: Bread Savings Bank's product mix is limited, offering only savings and CD accounts. The lack of checking accounts, money market accounts, and other banking products may be a drawback for customers. 
• Customer service: Customer service is a strong point, with representatives available through secure messaging and phone support. 
• Digital experience: The solid mobile app ratings indicate customer satisfaction with the digital banking experience, although some users have criticized withdrawal limits and account lockouts.
• ATM & branch access: Bread Savings Bank's most significant drawback is its lack of physical branches and ATM network. As an online-only bank, customers must rely on electronic fund transfers, which take several business days.

The bottom line

Bread Savings offers an industry-leading high-yield savings account and CDs with competitive interest rates. Its competitive APYs can accelerate your savings efforts, and the bank's mobile app and online platform allow customers to easily manage their accounts. 

However, Bread Savings’s limited product offerings and lack of in-person banking may not suit everyone's needs. Before opening an account, consider your financial goals and banking preferences carefully to ensure that Bread Savings Bank meets your expectations.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.