Review
Updated
Fact Checked
Nathan Alderman
Bread Financial (formerly Alliance Data) is best known for its credit cards, but it has a lot more to offer than that. Its savings account and CDs have rates that put it among the best we've come across, but it lacks checking accounts so you can't withdraw cash directly from the bank. Read our full Bread Financial review to learn about everything it has to offer.
Bread Financial
Rating image, 4.00 out of 5 stars.
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 = Poor4.00/5
Bottom Line
Bread Financial is worth checking out if you want a high rate of interest on your extra cash. Its high APYs on savings accounts and CDs as well as reasonable deposit requirements make the bank appealing to those with all balances. But you will need a checking account elsewhere 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
Bread Savings review
Bread Financial offers a single type of savings account -- Bread Savings, (formerly Comenity Direct).
Bread Savings
Bread Savings has a reasonable opening deposit requirement of just $100. In addition, its 5.00% APY is comparable to that of some top online banks we've reviewed. It has no monthly maintenance fee (as long as you're comfortable receiving eStatements). You can also make unlimited ACH transfers and mobile check deposits.
There's no way to get cash directly out of the account, but this is typical of most online savings accounts. However, because Bread Financial doesn't offer a checking account, you should be prepared to transfer funds to another bank first when you need cash.
Compare savings accounts
See how Bread Savings compares to savings accounts at other top banks by checking out our best savings accounts list. We've included a couple of top picks for comparison below.
Show Best Offers Available in
Rates as
of Sep 18, 2023
| Offer |
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|---|---|---|---|
| Account | |||
| Rating |
Rating image, 4.00 out of 5 stars.
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 = Poor4.00/5 |
Rating image, 4.75 out of 5 stars.
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 = Poor4.75/5 |
Rating image, 4.75 out of 5 stars.
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 = Poor4.75/5 |
| APY | 4.25% Rate info 4.25% as of September 20, 2023 | 4.30% | up to 4.50% APY with direct deposit Rate info SoFi members with direct deposit can earn up to 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.50% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 8/2/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. You can earn the maximum APY either by making direct deposits into checking or savings, or by depositing $5,000 or more every 30 days. Learn more at https://support.sofi.com/hc/en-us/articles/4423866727949. |
| Min. to earn APY | $1 | $0 | $1 |
| Next Steps |
* Discover Online Savings
Bonus offer details from Discover: "To get your $150 or $200 Bonus: What to do: Apply for your first Discover Online Savings Account, online, in the Discover App or by phone. Enter Offer Code TMF923 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted to account within 30 days of account open date. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded, or affinity accounts provided by Discover. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 12/14/2023, 11:59 PM ET. Offer may be modified or withdrawn without notice."
Bread Savings CD accounts
Bread Financial offers traditional certificates of deposit (CDs) with mouthwatering rates. Let's take a closer look at what Bread Savings CDs have to offer.
Bread Savings CDs
Bread Savings CDs have competitive APYs and terms from one to five years, but the bank doesn't offer shorter terms than 12 months. If you're interested in short-term CDs, you'll need to look at Bread's competitors.
The minimum deposit requirement is not unreasonable ($1,500). Nevertheless, 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. Additionally, there are early withdrawal penalties and your CD auto-renews at maturity unless you tell the bank you'd like to cash out.
Rates as of Sept. 15, 2023
APY = Annual Percentage Yield
Bread Savings CD
Bottom Line
Comenity Direct CDs (the bank behind Bread Savings) are available in many of the most popular terms, making it a flexible high-yield CD to consider for differing needs. There's also no monthly maintenance fee. But its $1,500 minimum deposit is a little steeper than what some of its competitors charge.
MINIMUM DEPOSIT $1,500
| 1 Yr. APY | 2 Yr. APY | 3 Yr. APY | 4 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|
| 5.25% | 5.00% | 4.50% | 4.35% | 4.25% |
Compare CD Rates
If Bread Savings CDs don't appeal to you, check out our list of the best CD rates to find some alternatives. Here are a couple select picks for comparison.
Rates as of
| Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
|---|---|---|---|---|
| APY: 5.51% | Term: 1 Year | Min. Deposit: $1 | |
Member FDIC.
| APY: 5.15% | Term: 1 Year | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.85% | Term: 1 Year | Min. Deposit: $2,500 | |
|
| APY: 5.51% | Term: 9 Months | Min. Deposit: $1 | |
Member FDIC.
| APY: 4.75% | Term: 1 Year | Min. Deposit: $500 |
Sorry, we didn't find any CDs that meet those criteria.
Bread Financial checking accounts review
Bread Financial doesn't offer checking accounts. If you're interested in one, you must consider another bank. Start with our list of the best checking accounts.
Bread Financial's customer service and experience
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 a B rating with the Better Business Bureau which, while not as high as we'd like to see, is not low enough to raise alarm. It hasn't been featured in any large customer satisfaction surveys, either. As a result, there's no other information to compare its customer service to its competitors'.
Since its only deposit accounts are savings accounts and CDs, this lack of info might not bother you. You probably won't be moving your money in and out of these accounts often anyway.
Bread Financial relationship benefits
Unlike brick-and-mortar banks, Bread Financial doesn't offer relationship benefits to customers who open multiple accounts. These can sometimes include waived maintenance fees and higher APYs on deposit accounts. Bread Financial already offers high APYs and fee-free accounts, so relationship benefits are unnecessary.
Alternatives to Bread Financial
If Bread Financial doesn't appeal to you, one of these banks may suit you better.
Discover Bank
If you're looking for one spot to get a credit card and a savings account, consider a Discover Bank Online Savings Account. While the bank is well known for its selection of great credit cards, it also offers a consumer-friendly savings account with next to no fees and a competitive interest rate.
CIT Bank
CIT Bank is a better choice if you want an online bank that enables you to manage your money in one place. It offers checking, savings, money market, and CD accounts, as well as home loans. Its savings rates are comparable to Bread Financial's. If you think CIT Bank might be a good fit for your lifestyle, take a look at our CIT Savings Connect review.
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 mostly interested in longer-term CDs.
FAQs
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Yes, Bread Financial is a legitimate financial institution. Money deposited at Bread Financial is FDIC-insured up to $250,000 per depositor.
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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.
Our Banking Experts
Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.
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.
Fact Checked
Nathan Alderman
Nathan Alderman has worked with The Motley Fool 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 The Ascent'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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