NerdWallet’s ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
Bread Savings™ is an online-only bank division of Bread Financial, a company that has had an established presence in the financial sector for decades. The bank has an unusual name, but its CDs have a straightforward perk: Top-of-the-line rates for terms ranging from three months to five years.
Bread Savings™ CDs have a minimum deposit of $1,500, which is higher than the typical minimum of $1,000 that many online banks have.
NerdWallet’s take: Bread Savings™ offers high CD rates across the board, which not every online bank does. This trend can make a CD ladder strategy attractive. As rates trend downwards in 2025, now is a good time to open high-yield CDs.
Bread Savings™ CD rates
|
Bread Savings™ disclosure Bread Savings™ says: “All Bread Savings APYs are accurate as of 04/24/2025. APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. To open a CD, a minimum of $1,500 is required and must be deposited in a single transaction. A penalty will be imposed for early withdrawals on CDs. At maturity, your CD will automatically renew and earn the base interest rate in effect at that time. Rates are compared against competitor rates published by NerdWallet.com and the institutions themselves as of 04/24/2025. NerdWallet.com obtains the data from the various banks that it tracks and its accuracy cannot be guaranteed.“ |
|
Frequently asked questions
What is the highest CD rate at Bread Savings™?
The highest CD rate at Bread Savings™ is 4.40% APY for its six-month CD. Rates on newly issued CDs are subject to change over time.
Is Bread Savings™ FDIC insured?
Yes. As at most banks, funds saved in a CD at Bread Savings™ are insured by the Federal Deposit Insurance Corporation, up to $250,000 per account as the standard cap. If you’d like to confirm FDIC insurance on the BankFind tool, be aware that Bread Savings™ is the brand for Comenity Capital Bank, a Utah-based state chartered bank that’s part of Bread Financial.
Bread Savings™ says: “FDIC insurance up to $250,000 per depositor for each ownership category.”
What are Bread Savings™ CD rates today?
Rates on new CDs fluctuate, but today, Bread Savings™ is offering a rate of 4.00% APY for a 12-month CD, 4.00% for a 3-year CD and 4.00% for a 5-year CD. Read on for more rates and terms.
What is the highest CD rate at Bread Savings™?
The highest CD rate at Bread Savings™ is
4.40%
APY for its six-month CD. Rates on newly issued CDs are subject to change over time.
Is Bread Savings™ FDIC insured?
Yes. As at most banks, funds saved in a CD at Bread Savings™ are insured by the Federal Deposit Insurance Corporation, up to $250,000 per account as the standard cap. If you’d like to confirm FDIC insurance on the
BankFind tool
, be aware that Bread Savings™ is the brand for Comenity Capital Bank, a Utah-based state chartered bank that’s part of Bread Financial.
Bread Savings™ says:
“FDIC insurance up to $250,000 per depositor for each ownership category.”
What are Bread Savings™ CD rates today?
Rates on new CDs fluctuate, but today, Bread Savings™ is offering a rate of
4.00%
APY for a 12-month CD,
4.00%
for a 3-year CD and
4.00%
for a 5-year CD. Read on for more rates and terms.
More details about Bread Savings™ CDs
|
$1,500. |
|
|
This is a wider range of terms than other online banks, given that three-month terms are less common. |
|
*The penalty can include more than interest earned if the withdrawal occurs early enough. Bread Savings™ disclosure Bread Savings™ says: “For terms shorter than 1 year, the penalty is 90 days simple interest. For terms 12 months to 3 years, the penalty is 180 days simple interest. For terms 4 years and up, the penalty is 365 days simple interest.” |
|
|
None, which is common for CDs. |
|
|
10 days after the CD’s maturity date. |
|
|
Main types of account ownership |
|
What to consider when opening CDs
-
CD rates are fixed. If you open a Bread Savings™ CD today, its annual percentage yield will stay the same until the CD expires.
-
Be aware of two common rules with CDs: You can’t make partial withdrawals of the original CD amount or add more money after the initial funding of a CD.
-
You lose interest if you withdraw early. CDs are built to keep your money out of sight, out of mind. If you dip into a Bread Savings™ CD before it expires, there’s an early withdrawal penalty, which means losing some or all of the interest you earned.
-
Interest accrues in a CD during the term, so you can benefit from compound interest. Alternatively, you can request to receive interest during the term to another bank account at Bread Savings™ or another bank.
-
CDs auto-renew unless you opt out. To avoid renewal, withdraw during the grace period.
-
Compounding frequency doesn’t often help you compare rates. Like a savings account, a CD’s rate is primarily quoted as an annual percentage yield (APY), meaning the annual interest rate that factors in compounding. You can compare two interest rates with different compounding periods using APY. Alternatively, if you only know a CD’s interest rate, you need to know the compounding frequency — often daily or monthly — to estimate your return. Learn more about APY vs. interest rate.
Source link