We recently named Bread Savings to our list of the best CD rates due to its six-month CD with a 4.50% annual percentage yield (APY). It wasn’t too long ago that numerous banks were offering 6% interest rates; however, today, 4.50% is about as good as it gets.

Bread Savings, formerly Comenity Direct, is an online bank that offers customers access to CDs, high-yield savings accounts, retirement accounts, and several credit cards. Keep reading as we dive into the current Bread Savings CD rates and some of the features that customers are provided with.

Current Bread Savings CD Rates

Bread Savings CD rates are going to depend on the term you choose. Below is a chart showing the different CD rates you can receive.

Key Features of Bread Savings CDs

• No Fees: There are no monthly maintenance fees.
• Several Terms Available: Bread Savings offers several CD terms ranging from three months to five years.
• Mobile and Online Access: You can access your Bread Savings CD account online or through their mobile app.
• Daily Compounding Interest: Interest on a Bread Savings CD compounds daily and is paid out monthly.
• FDIC Insured: Bread Savings CDs come with FDIC insurance, up to $250,000 per depositor, per category.
• Early Withdrawal Penalties: You will be charged an early withdrawal penalty when you withdraw your money before the CD matures. For CD terms of less than one year, the penalty is 90 days of simple interest. For CD Terms between 12 months and three years, the penalty is 180 days of simple interest. For CD terms of four years or more, the penalty is 365 days of simple interest.

How Do Bread Savings CD Rates Compare?

Do you want to compare the current Bread Savings CD rates to other options? Here are a few other options to consider.

Pros and Cons of Bread Savings CD Rates

Pros of Bread Savings CDs

• Competitive Interest Rates: Bread Savings offers competitive CD interest rates of up to 4.50% APY.
• No Fees: There are no monthly maintenance fees.
• Multiple CD terms Available: You can choose from CD terms of three months to five years.
• FDIC Insurance: The amount you invest in a Bread Savings CD is protected by FDIC Insurance.
• Automatic Renewals: Your CD will automatically renew upon maturity. However, you can withdraw your cash during a 10-day grace period.

Cons of Bread Savings CDs

• High Minimum Deposit: Each Bread Savings CD requires a minimum $1,500 deposit.
• No Physical Bank Locations: Bread Savings is an online bank, so there are no physical branches if you prefer in-person banking.
• Early Withdrawal Penalty: If you withdraw your funds before the CD matures, you will be charged an early withdrawal penalty.

How to Open a Bread Savings CD

If you’re ready to open a new Bread Savings CD, follow these steps:

1. Head over to the Bread Savings website.
2. Choose the CD term you want, ranging from three months to five years.
3. Fill out your personal information, which includes your name, mailing address, phone number, email address, and Social Security number. Bread Savings CDs are also available as a joint account. If two people are opening an account, you must provide personal information for both people.
4. Fund your account with a minimum of $1,500. You can do this with an ACH transfer from another bank or by depositing a check through the Bread Savings mobile app.
5. The funds will then be in your account within ten business days.

Alternatives to Bread Savings CDs

Before deciding to move forward with a Bread Savings CD, consider some alternatives.

High-Yield Savings Account: CDs require locking your funds up for the duration of the CD’s term. If you would prefer access to the money in case of an emergency, you could choose a high-yield savings account instead. Two of my favorites are Forbright Bank and American Express.

Money Market Account: Money Market Accounts are very similar to savings accounts. Unlike CDs, you’ll have access to your money. You can also write checks from the account and have a debit card.

High-Yield Checking Account: If you prefer to keep your money in a checking account, you could use a high-yield checking account that will help you earn interest. Consumers Credit Union Free Rewards checking account is a free account that allows you to earn up to 5.00%.