Just four weeks ago, Bread Financial (the former Comenity Direct) had across-the-board rate increases on its entire product line. Bread Financial again upped all its rates yesterday, but this time every CD and the High-Yield Savings had an additional 50 bps added to the APYs. While all the CDs now offer very good rates, the 1-year CD continues to be the most competitive CD in the product line.
Any Bread Savings CD can be opened with a minimum $1.5k deposit. As stated on the Certificates of Deposit page, “Maximum deposit limit of $1 million per account and $10 million limit per customer."
CD interest is credited on a monthly basis and can be withdrawn at any time throughout the term. Automatic monthly transfers to a linked external account or to another Bread Financial account can be done by setting up a recurring transfer.
Bread Financial does not allow partial withdrawals, only early closures that are subject to the following Early Withdrawal Penalty:
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.
According to the Truth-in-Savings for Certificates document, there is no language allowing the bank to deny an early closure request.
You are not permitted to withdraw a portion of your principal at any time prior to maturity. You may withdraw the entire principal amount prior to maturity, but you will be charged an early withdrawal penalty.
Funding and Accessing Maturing Funds
Funding a CD (minimum $1.5k) can be done by check, ACH or wire transfer, or transfer from another Bread Financial account.
As stated in the Truth-in-Savings disclosure,
You are also subject to a maximum deposit balance across all Accounts of $10,000,000 per Account owner for individual Accounts and $5,000,000 per Account owner for joint Accounts, for a maximum deposit balance limit of $10,000,000 per Account owner.
With respect to joint Accounts, for purposes of determining the maximum deposit balance permissible per Account owner, each joint Account owner will be attributed an equal portion of the balance of the joint Account. For purposes of calculating the maximum aggregate deposit balance permissible, for each Account owner and in each Account, deposit balances include:
- All Online Savings and CD Accounts held by the same Account owner at the Bank; and
- Principal plus interest earned and credited but not withdrawn.
There is a 10-day grace period before a CD will be automatically renewed. Maturing funds can be distributed by check, ACH or wire transfer, or transfer to a Bread Financial High-Yield Savings account.
The Deposit Account Terms document provides a great deal of useful information about the ins-and-outs of Bread Financial transactions.
High-Yield Savings Account
The High-Yield Savings Account (HYSA) currently earns 1.65% APY on balances. In the past five months, a total of 105 bps has been added. The minimum opening deposit is $100, but the 1.65% APY applies to all balances between $1 and $10 million.
Funding and Accessing
Deposits made to the HYSA can be done by check, ACH, wire transfer, or transfered from another Bread Financial account. There is no limit on the number of external accounts that can be linked. According to CSR, the average hold time for an ACH transfer is between 1-3 business days, with hold times for larger amounts (six figures plus) being slightly longer, but a variety of reviews by DA readers dispute those hold times. (See DA Reader Reviews below.)
This is a standard online savings account with no ATM/debit card; any withdrawals must be made through ACH or wire. There are no dollar limits on ACH withdrawals initiated by an external bank. There is no excessive transaction fee for withdrawals in excess of the standard six withdrawals per statement cycle, because withdrawals beyond the six are not permitted. If you do attempt to make a seventh withdrawal, Bread Financial may “deny and/or reject the transfer, and we may close your Account.”
While a Bread Financial account is fee-free (including free monthly maintenance, ACH transfer, online statements, and incoming wire transfers), there are three fees which can be charged:
- $5 per request for paper statements
- $15 per request for paper check withdrawal
- $25 per request for outgoing wires
Unlimited payable-on-death (POD) beneficiaries are allowed. Social Security numbers are NOT required for beneficiaries and percentages can be designated. Charities/non-profits cannot be named as a beneficiary, but trusts can be named.
The Deposit Account Terms document provides a great deal of useful information about the ins-and-outs of Bread Financial transactions for all accounts.
DA Reader Reviews
Three important issues have been noted by DA readers in reviews of Bread Financial:
- Having to recreate links to an external account after the account is opened. The link that was created during the application and initial funding process is not maintained.
- Actual hold times are much longer than the theoretical hold times mentioned by CSR: ten business days for the first 30 days and 5 business days thereafter.
- Small outgoing ACH transfer limits of $5k per day and $30k per month.
The May 11, 2022 review (Easy to Move Your Money In, Hard To Get It Out) written by DA reader, vaylie, is definitely worth reading. vaylie starts out by stating,
Re-posting my old review since their name change wiped out almost 60+ old negative reviews on this site.
While the Bread Financial rebrand did trigger a new DA page, all the previous reviews written about Comenity Direct mentioned by vaylie can be found using this link.
Headquartered in Columbus, Ohio, Bread Financial offers accounts to U.S. citizens or resident aliens, 18 years or older, who have a valid Social Security number and a current street address in the U.S. (no PO Boxes allowed).
Only individuals may open a Bread Financial sole or joint ownership account. Custodial accounts and trust accounts are not permitted, but as mentioned above, trusts can be named as a beneficiary.
Bread Financial has no brick-and-mortar branches. Opening an account can only be done online.
Bread Financial has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 8.87% (excellent) based on March 31, 2022 data. In the past year, Bread Financial increased its total non-brokered deposits by $1.7 billion, an excellent annual growth rate of 49.34%. Please refer to our financial overview of Bread Financial (FDIC Certificate # 57570) for more details.
When I wrote about the now-defunct Comenity Direct in early March, I stated,
While Comenity Direct is the newest member of the Comenity family, Comenity Bank and Comenity Capital Bank have 30 years of experience of providing financial services. Comenity is best known for its private-label and co-branded credit cards at more than 100 retailers.
All that changed in late March 2022 when the Bread Financial rebrand occurred. According to an April 25, 2022 press release,
Bread Financial (NYSE: BFH), a tech-forward financial services company that provides simple, flexible payment, lending and saving solutions, announces its former Comenity Direct consumer deposit brand is now Bread Savings. The name change reflects the rebranding of Alliance Data to Bread Financial, which was announced on March 23.
Bread Savings offers high-yield savings accounts and certificates of deposit at top market rates and makes it easy to transfer funds from an existing bank to start earning interest immediately.
All Comenity Direct, Comenity Bank, and Comenity Capital Bank accounts are now housed under the Bread Financial umbrella.
How the 1-Year Bread Savings CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com which are available nationwide and have minimum deposit requirements of $10k or less, no banks or credit unions has a higher rate than currently offered on the Bread Financial 1-year Bread Savings CD. The following table compares the 1-Year Bread Savings CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
|APY||CD Term (Early Withdrawal Penalty)||Credit Union/Bank|
|2.50%||1-Year Bread Savings CD (EWP=180 days)||Bread Financial|
|2.25%||12-Month CD (EWP=90 days interest)||United Texas Bank|
|2.22%||6-11 Month CD (EWP=90 days)||Department of Commerce Federal Credit Union|
|2.20%||12-Month CD (EWP=unknown)||INSBANK Online|
|2.05%||14-Month CD Special (EWP=180 days)||Premier America Credit Union|
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
How the High Yield Savings Account Compares
When compared to nationally available Money Market Accounts and Savings Accounts tracked by DepositAccounts.com, that do not require large balances or direct deposit, and do not have small balance caps, the Bread Financial High-Yield Savings APY currently shares the top spot with the First Foundation Bank Online Savings Account APY..
|APY||Account Name||Credit Union/Bank|
|1.65%||High-Yield Savings ($100 min/no max)||Bread Financial|
|1.65%||Online Savings Account (no min/$5m max)||First Foundation Bank|
|1.61%||Bask Interest Savings Account (no min/no max)||Bask Bank|
|1.51%||Money Market Account (no min/$1m max)||Merchants Bank of Indiana|
|1.51%||UFB Money Market Account (no min/no max)||UFB Direct|
The above information and rates are accurate as of 6/25/2022.