Bread Savings CD Rates: December 2024

An easy-to-understand set of CDs offering high interest rates helps Bread Savings toast the competition

Reviewed by Michael J Boyle
Fact checked by Amanda Bellucco-Chatham

Bread Savings may have a bit of a bland name, but it offers some pretty exciting CD options with rates of up to 4.65% if you’re looking to maximize your earnings. Bread Savings CD rates are some of the best CD rates being offered by any bank, as of publication.

As with any bank, there are limitations. Bread Savings CDs are a good choice if you have at least $1,500 you can part ways with temporarily, to be reunited with later (and with a good bit of interest, too).

Compare Bread Savings CD Rates

Bread savings does offer fairly competitive rates on its CDs, but by comparing the terms and returns of several CDs, you can determine which one best suits your needs.

Bread Savings CDs: Key Features

Bread Savings offers a simple yet valuable range of CDs. Instead of giving you a case of analysis paralysis with lots of different offerings and conditions, Bread makes it easy to make a decision: You get a choice of five different CD options, at one-year intervals. The rates offered on these CDs are especially good—even for the shorter-term options—compared with most other banks and credit unions.

One downside of these CDs is the minimum deposit requirement of $1,500 per CD. Many banks charge higher amounts, to be sure, but there also are numerous other CDs available with similar rates but lower minimum deposit requirements. Bread Savings' minimum deposit requirement is in the range of what most institutions require, so only those with at least $1,500 can access these CDs.

Pros and Cons of Bread Savings

Pros

Competitive interest rates
Several choices

Cons

Minimum deposit requirement
Limited options

Pros Explained

Competitive interest rates: The rates offered on these CDs are especially good—even for the shorter-term options—compared with most other banks and credit unions.
Several choices: Bread offers CDs with several terms in one-year increments, up to five years.

Cons Explained

Minimum deposit: These CDs have a minimum deposit requirement of $1,500 per CD. Many banks charge higher amounts, to be sure, but there also are numerous other CDs available with similar rates but lower minimum deposit requirements.
Limited options: While Bread Savings does offer several term options, you can only get them in one-year increments, not less than 1 year.

About Bread Savings

Bread Savings is an online-only financial institution specializing in high-yield savings accounts and CDs. If you’ve ever heard of Comenity Bank, the issuer of many popular retail store credit cards, you may be familiar with Bread Savings. A division of the company rebranded in March 2022, switching things up to offer more customer-friendly savings accounts into the mix—such as these high-yield CD accounts.

Bread Savings does have a maximum deposit limit of $1,000,000 per CD, and $10,000,000 per customer. However, we don’t recommend keeping more than $250,000 in the account because unlike some other banks, Bread Savings doesn’t offer a CDARS or ICS program that spreads your larger balances out among banks in order to keep the same FDIC protection on a larger balance of money.

Bread Savings isn’t a full-service bank with a checking account, so it’s also a good choice if you’re looking to keep your savings a bit more separated from your everyday bank accounts.

Alternatives to Bread Savings CDs

High-yield savings accounts: If you’re willing to open an online savings account elsewhere, you may be able to earn higher rates than what Bread Savings CDs offer. See the best high-yield savings account rates to compare how much you could earn.
High-yield checking accounts: You may find relatively high rates with some checking accounts. Be aware of their requirements and limits. The best high-interest checking accounts give you easy access to your money.
Certificates of deposit (CDs): Bread Savings has some competitive rates on its CDs. You can also choose from a range of CDs from other financial institutions.
Money market account: Money market account can also provide a return on your savings. Check the best money market account rates to see how it compares.
Treasury securities: These government-backed bills, notes, and bonds sometimes offer even higher rates than CDs and may be more liquid.

Frequently Asked Questions (FAQs)

Do CDs at Bread Savings Auto-Renew?

Yes. When your Bread Savings CD matures and its term ends, it’ll auto-renew for another term. When it renews, it’ll do so at the then-current rates, not necessarily at the rates you were earning during your prior term. You will have a 10-day grace period when you can withdraw the money penalty-free if you want to use it.

What Is the Minimum Deposit to Open a CD Account at Bread Savings?

Bread Savings requires a minimum $1,500 deposit for its CDs. Many options for CDs these days have lower minimum deposit requirements, but $1,500 is in the range of what commonly is required.

Can You Ladder CDs at Bread Savings?

Yes, you can create a CD ladder with CDs from Bread Savings. It even offers a handy CD ladder calculator on its website that can help you plan out a good CD ladder strategy given how much you have to invest, letting you know how much you can expect to earn in return.

Is There an Early Withdrawal Penalty for CDs at Bread Savings?

Yes, Bread charges early withdrawal penalties. If you withdraw your money early from a CD with a term shorter than one year, you’ll pay a penalty of 90 days worth of interest; for a one-, two-, or three-year CD, you’ll pay an early withdrawal penalty of 180 days’ worth of interest. And for terms of four years and up, you’ll pay an early withdrawal penalty of 365 days’ worth of interest.