Bread Savings®, a division of Bread Financial, offers competitive rates on certificates of deposit (CDs) through its online-only platform. While the brand name might stand out, its products focus on what matters most: strong APYs and a variety of term lengths ranging from 3 months to 5 years.
Quick Take: Why Consider Bread Savings CDs?
Bread Savings stands out by offering consistently high CD rates, even across shorter terms—a rarity among online banks. With interest rates projected to decline in 2025, now may be a good time to lock in a high-yield CD.
Current Bread Savings® CD Rates
| Term | APY |
|---|---|
| 3-month | 3.80% |
| 6-month | 4.45% |
| 9-month | 3.80% |
| 1-year | 4.00% |
| 18-month | 3.80% |
| 2-year | 3.90% |
| 3-year | 3.85% |
| 4-year | 3.85% |
| 5-year | 3.85% |
💡 Tip: These rates make Bread Savings a great option for building a CD ladder — a strategy to maximize earnings while keeping funds accessible at regular intervals.
Key Features of Bread Savings CDs
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Minimum Deposit: $1,500
This is slightly higher than the $1,000 minimum commonly seen at other online banks. -
Term Options: 3 months to 5 years
Bread offers a wide range of durations, including shorter 3-month terms not always available elsewhere. -
Early Withdrawal Penalties:
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CDs under 1 year: 90 days’ interest
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1 to 3 years: 180 days’ interest
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4 years or more: 1 year of interest
Note: In some cases, penalties may exceed the interest earned.
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Grace Period: 10 days after maturity
CDs automatically renew, so you’ll need to act within this window to avoid a penalty. -
Other Fees: None — which is standard for CDs.
Frequently Asked Questions
What’s the highest CD rate at Bread Savings?
Currently, the 6-month CD offers the highest APY at 4.45%.
Is Bread Savings FDIC insured?
Yes. Deposits are FDIC insured up to the standard limit of $250,000 per depositor, per institution.
What types of accounts can open a Bread Savings CD?
Bread supports several ownership types:
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Individual
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Joint
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Custodial (for minors)
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Trusts (including payable-on-death)
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IRA CDs are also available
Things to Know Before Opening a CD
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Fixed Rates: Your APY is locked in when the CD is opened and won’t change throughout the term.
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No Add-Ons or Partial Withdrawals: You can’t deposit more money or make partial withdrawals once the CD is funded.
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Early Withdrawals = Lost Interest: If you withdraw before maturity, you’ll pay a penalty, which could wipe out some or all of your earned interest.
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Compound Interest: Interest accrues over time and compounds. You can choose to have it paid out to a separate Bread Savings or external account instead of letting it compound.
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CDs Auto-Renew: If you don’t take action during the 10-day grace period, your CD will renew automatically at the current rate for the same term.
Final Thoughts
Bread Savings CDs are a strong contender if you’re looking for high yields, especially on shorter terms. Just be mindful of the $1,500 minimum and relatively steep early withdrawal penalties. With rates likely to drop in the near future, now may be an ideal time to lock in returns.
📊 COMPARE: [See today’s best CD rates] to find the right fit for your savings strategy.
