Bread Savings Certificate of Deposit: A Complete Guide

A Bread Savings Certificate of Deposit (CD) is a type of savings account that offers a fixed interest rate in exchange for a fixed term.

It's a low-risk investment option that's FDIC-insured, which means your deposits are insured up to $250,000.

You can earn a higher interest rate than a traditional savings account by committing your money for a set period, typically ranging from a few months to several years.

By locking in your interest rate, you can avoid market fluctuations and earn a predictable return on your investment.

Bread Savings offers a range of CD options to suit different savings goals.

Bread Savings CDs come with terms of one to five years, with interest rates well above the national average.

The minimum opening balance for a Bread Savings CD is $1,500, and there's a $1 million per account and $10 million per customer limit.

Here's a comparison of the CD terms offered by Bread Savings:

CDs are best for people who know they won't need their money for the entire term, as early withdrawal penalties can be steep.

Bread Savings CD rates are competitive with other online banks, offering a nice stack up against Quontic Bank's rates. Quontic Bank offers a slightly lower rate on one-year CDs, but also offers six-month CDs that could be advantageous for those looking for a high yield on short-term savings.

Quontic Bank's current CD rates are:

Bread Savings also offers a better rate than many big name banks, like Barclay's. Barclay's has mostly lower rates across the board, except for its five-year CDs that offer a 4.50% APY.

Barclay's current CD rates are:

High-yield savings accounts and certificates of deposit (CDs) are two popular options for saving money. CDs are a time-bound savings account where you can earn a higher interest rate in exchange for locking your funds away for a specific period.

You can earn a higher interest rate with a CD, but you'll need to keep your money locked in for the entire term to avoid early withdrawal penalties. The penalty for one-year to three-year CDs is 180 days of interest, while for four years and longer, it's 365 days of interest.

CDs are a good choice for those who are financially secure and want to earn a higher interest rate on a portion of their cash savings. You can also use a CD ladder strategy to spread out the maturity dates for your funds and still lock in the higher interest rates of a CD.

Here's a comparison of common high-yield savings and CD features:

High-yield savings accounts are popular for keeping money safe when unsure if you'll need it soon or when you may have to withdraw. They typically won't grow as fast as an investment, but there's also virtually no risk of losses.

Opening a Savings Account is a great first step towards securing your finances. You can expect favorable interest rates with Bread Savings.

With very low fees, you're likely to walk away with more money than when you started.

Accounts are safe and insured by the government, which gives you a lot to earn.

Even if the bank goes out of business, you're guaranteed to get your money back from the FDIC up to insurance limits.

Brilliant Bank, a division of Equity Bank, offers a 4.60% APY on its CDs, with a minimum deposit requirement of $1,000.

My e-Banc, a division of Bradesco BAC Florida Bank, offers a 4.55% APY on its CDs, but you'll need to deposit at least $50,000 to qualify.

Brilliant Bank also offers a 4.55% APY on its CDs, with a $1,000 minimum deposit requirement.

TotalDirect, a division of City National Bank of Florida, offers a 4.51% APY on its CDs, but you'll need to deposit at least $25,000 to qualify.

TotalDirect also offers a 4.50% APY on its CDs, with a $25,000 minimum deposit requirement.

Here's a comparison of the current CD rates from some online banks:

Note that some of these banks may have changed their rates recently, so it's always a good idea to check the current rates before making a decision.

The Bread Savings certificate of deposit offers a fixed interest rate of 4.50% per annum. This rate is applied consistently throughout the term of the investment.

The annual interest earned on the CD increases as the balance grows. For example, after the first year, the interest earned is $900, which is a significant return on the initial investment of $20,000.

As the interest is compounded annually, the balance grows, and so does the interest earned in subsequent years. This creates a snowball effect, where the interest earned in one year becomes the starting point for the next year's interest.

Here's a breakdown of the annual interest earned and the balance after each year:

The total interest earned over the 10-year term is $11,059, which is a substantial return on the initial investment.