If you're on the hunt for a savings account that will earn you the most money, you will likely find that many banks advertising the most competitive rates operate entirely online and provide limited features.
The Bread Savings account is an excellent example. You'll get an outstanding APY — but you have to be okay with sacrificing some of the conveniences brick-and-mortar banks typically offer.
Below, CNBC Select reviews Bread Savings to help you determine whether it's a good choice for your money.
Bread Savings account review
Bread Savings™
Annual Percentage Yield (APY)
5.15% APY1
Minimum balance
None
Monthly fee
None
Maximum transactions
No monthly limit
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
No
Offer ATM card?
No
Terms apply.
Read our Bread Savings Account review.
Pros
- High APY
- No minimum balance
- No monthly fees
- Low opening balance requirement
Cons
- No debit cards available
- No checking account offered
- No ATM access
- Limited customer service hours
- No brick-and-mortar locations
1APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For high-yield savings accounts, a minimum of $100 is required and must be deposited in a single transaction. For high-yield savings accounts, the rate may change after the account is opened.
APY
The Bread Savings account currently offers a highly competitive APY of 5.15%. This rate is variable and can change at any time, as is the case with most savings accounts.
You need a $100 deposit to open the account but there's no minimum balance requirement. Still, Bread Financial encourages account users to keep at least $100 to take full advantage of the generous interest rate.
As common for high-yield savings accounts, interest compounds daily and is paid out on a monthly basis. This means that you'll earn interest on accrued interest every day and these earnings will appear on your account each month.
Bread Financial also offers a few certificate of deposit (CD) options. You can get the highest rate Bread offers with a one-year CD which currently earns 5.60% APY.
Access to your cash
Since Bread Financial is a purely online financial services company, banking with them comes with potential tradeoffs. The online bank lacks any physical branches, provides zero ATM access and doesn't issue debit cards. And because Bread doesn't offer a checking account, you'll have to transfer money from your savings account to one of your external bank accounts whenever you want to withdraw funds.
But if you don't mind having an online-only account, you'll probably feel comfortable navigating the Bread Savings account. You can transfer money to an external account at any time or add it to your Bread savings via mobile check or ACH transfer.
Unlike many banks, Bread Financial doesn't limit the number of withdrawals you can make per month, according to a customer service representative we spoke to. However, if you need to transfer more than $5,000 to your external account within your first 90 days with Bread Savings, you'll have to call customer service as you won't be able to complete the transfer online.
Bread Savings deposits are FDIC-insured for up to $250,000 per account holder, and there's a maximum deposit limit of $1 million per account and $10 million per customer.
Perks
Beyond the high APY, this account doesn't have many other perks or benefits. Account users get free monthly account maintenance, as well as access to free online statements, ACH transfers and incoming wire transfers.
Customer service is available over the phone seven days a week, from 7 a.m. to 9 p.m. CT on weekdays and from 9 a.m. to 5 p.m. CT on weekends and most holidays. Account holders can also use secure messages in online banking.
Fees
Bread Savings charges no monthly fees or minimum balance fees. Incoming wire transfers are also free. However, an outgoing wire transfer costs $25. Additionally, you'll pay $15 per official check request and $5 for a paper statement.
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Bottom line
The Bread Savings account offers an outstanding APY. If your goal is to earn as much interest on your savings as possible, it can be worth considering. However, keep in mind that Bread Financial is an online financial services company. When banking with them, you won't be able to visit a physical branch or have any ATM access. If you're not comfortable with such limitations, you might be better off looking into brick-and-mortar savings accounts.
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