Comenity Direct Product Line Remains Competitive


Deal Summary: CDs – 1-year (0.70% APY), 2-year (0.75% APY), 3-year (0.85% APY), 4-year (0.85% APY), and 5-year (0.90% APY), $1.5k min/$10m max deposit. High-Yield Savings Account, 0.55% APY on balances of $1-$10 million.

Availability: Nationwide (internet bank)

When I wrote about the five CDs in the Comenity Direct product line in May 2019, I described the rates (ranging from 2.86% to 3.05%) as “good but not great.” Those “good” rates lasted about two months before the entire CD product line began a series of 15 rate decreases over nine months. With the exception of the 1-year CD, Comenity Direct’s CD rates have remained unchanged since September 2020. The 1-year CD gained a very modest 10 bps in the past five months and currently offers the most competitive CD rate.

1.10%$1.5k$10mComenity Direct5-Year CD
1.05%$1.5k$10mComenity Direct4-Year CD
1.00%$1.5k$10mComenity Direct3-Year CD
0.75%$1.5k$10mComenity Direct2-Year CD
0.65%$1.5k$10mComenity Direct1-Year CD
Rates as of January 27, 2022.

The minimum opening deposit for any Comenity Direct CDs is $1.5k deposit. As stated on the Certificates of Deposit page, “Maximum deposit balance limit of $10 million per account holder."

Interest Payments

CD interest is credited on a monthly basis and can be withdrawn at any time throughout the term.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 Comenity Direct account can be done by setting up a recurring transfer.

Early Closure

Comenity Direct does not allow partial withdrawals, only early closures, which are subject to the following Early Withdrawal Penalty:

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.

Funding and Accessing Maturing Funds

Funding a CD (minimum $1.5k) can be done by check, ACH or wire transfer, or transfer from another Comenity Direct account.

As stated in the Truth-in-Savings disclosure,

Account owners are subject to a maximum deposit balance across all Accounts (which includes, Online Savings and CD 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.

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 transferred to a Comenity Direct Online Savings account.

High-Yield Savings Account

Comenity Direct’s High-Yield Savings Account (HYSA) currently earns 0.55% APY on balances between $1 and $10 million. The HYSA currently offers the second highest rate for nationally available savings accounts with low minimum balance requirements. The minimum opening deposit is $100.

0.55%-$10mComenity DirectHigh-Yield Savings Account
Rates as of January 27, 2022.

Funding and Accessing

Deposits made to the HYSA can be done by check, ACH, wire transfer, or transfered from another Comenity Direct account. There is no limit on the number of external accounts that can be linked. 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.

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 transfers, either on withdrawals initiated through the Comenity Direct or 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, Comenity Direct may “deny and/or reject the transfer, and we may close your Account.”

Potential Fees

While a Comenity Direct 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 Comenity Direct transactions for all accounts.


Headquartered in Wilmington, Delaware, Comenity Direct 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 Comenity Direct sole or joint ownership account. Custodial accounts and trust accounts are not permitted, but as mentioned above, trusts can be named as a beneficiary.

As an internet division of Comenity Capital Bank, Comenity Direct has no brick-and-mortar branches. Opening a CD and/or a HYSA can be done only online.

Bank Overview

As an online brand of Comenity Capital Bank, Comenity Direct operates under Comenity Capital Bank’s FDIC Certificate and shares its financial history.

Comenity Direct/Comenity Capital Bank has an overall health grade of "B+" at, with a Texas Ratio of 7.85% (excellent) based on March 31, 2021 data. The Bank has an excellent capitalization level (30.10%), the result of having $9.13 billion in assets, with $2.75 billion in equity. Please refer to our financial overview of Comenity Direct/Comenity Capital Bank (FDIC Certificate # 57570) for more details.

Comenity Direct may be the newest member of the Comenity family, but Comenity Bank and Comenity Capital Bank have more than 30 years of experience of providing financial services. Originally known as World Financial Network National Bank, Comenity Capital Bank is currently Utah’s tenth largest bank, with assets in excess of $9.1 billion and more than 892,000 customer accounts.

How the CD Compares

When compared to the nationally available similar length-of-term CDs tracked by, which require a minimum deposit of $5k or less and are offered by banks only, Comenity Direct’s 1-year CD APY currently ranks first.

When compared to the nationally available similar length-of-term CDs tracked by, which require a minimum deposit of $5k or less and are offered by both banks and credit unions, Comenity Direct’s 1-year CD APY currently ranks second.

The above information and rates are accurate as of 7/26/2021.

To search for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.

Related Pages: savings accounts, 1-year CD rates, 5-year CD rates, nationwide deals, Internet banks

  |     |   Comment #1
I would thinks it's more relevant to DA readers whether an FI's product line is in any respects "desirable" than how "competitive" it is. Who here has any inclination to put funds in 1-5 year CD's all yielding less than 1%, - especially so with inflation running so hot as it is now and likely getting hotter? Probably no one.
  |     |   Comment #2
Who pays their bills?
  |     |   Comment #3
Totally agree. It is almost as if the word competitive has been redefined as tying for last in a race to the bottom.
  |     |   Comment #4
Competitive: as good as or better than others of a comparable nature
Desirable: wanted or wished for as being attractive

Ken draws attention to competitive rates. They are not desirable to me but I have little choice right now.
Comenity Direct Makes Modest Rate Increases
Deal Summary: High-Yield Savings Account, 1.70% APY on balances between $100 and $10 million.

Availability: Nationwide (internet bank)

In a Forum post last week, DA reader, tbc3, noted that,

As I noted in yesterday’s Liquid Summary, Comenity Direct is one of a handful of online banks that have changed the trajectory of their rates with modest increases, partially reversing rate cuts made in early March. In doing so, Comenity Direct seems to have joined other online banks that are stretching out their transition to low rates.

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Comenity Direct 1-Year CD Earns 2.86% APY
Deal Summary: CDs – 1-year (2.86% APY), 2-year (2.98% APY), 3-year (3.05% APY), 4-year (3.10% APY), and 5-year (3.15% APY), $1.5k min/$10m max deposit

Availability: Nationwide (internet bank)

Two weeks ago, I wrote about Comenity Capital Bank’s new online division, Comenity Direct, and its High-Yield Savings Account (2.48% APY). There are also five CDs in the product line that offer good (but not great) rates, with the 1- and 3-year CDs having the most competitive rates. Any of the CDs can be opened with a minimum $1.5k...

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Comenity Direct Unveils High-Yield Savings, 2.48% APY
Deal Summary: High-Yield Savings Account, 2.48% APY on balances between $1- $10m, $100 min opening deposit

Availability: Nationwide (internet bank)

Comenity Direct (an online division of Comenity Capital Bank) has introduced its High-Yield Savings Account (HYSA), which currently earns 2.48% APY on balances between $1 and $10 million. This new account is now the rate leader for nationally available savings accounts with low minimum balance requirements. The HYSA can be opened with a minimum $100 deposit.

Comenity Direct also offers five competitive CDs with terms from...

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