Bread Savings High-Yield Savings Review (September 2026): 4.00% APY, $100 Minimum
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Rates checked against breadfinancial.com on September 24, 2026 · Updated
Bread Savings pays 4.00% APY on its high-yield savings account, with a $100 minimum opening deposit (APYs Bread lists as accurate as of September 25, 2026). Bread's CDs pay 4.00% to 4.40% from 6 to 18 months, and DepositAccounts lists its 5-year CD at 4.50%. Deposits are held at Comenity Capital Bank, FDIC cert 57570.
Savings account vs MYGA, after tax
What $100,000 earns in 5 years: savings account vs MYGA, after tax
Rates used: Savings account 4.00%, the top online savings rate we tracked (bank sites, September 24, 2026); savings rates can change any day; change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| Savings account, interest taxed every year | $116,604 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the savings account, after tax | $9,531 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
Bread Savings HYSA at a glance
| Feature | Bread Savings HYSA |
|---|---|
| APY | 4.00% (variable) |
| Minimum to open | $100, in a single deposit |
| Maximum | $1 million |
| Bank | Comenity Capital Bank (a Bread Financial company) |
| FDIC | Comenity Capital Bank, Draper, Utah, cert 57570 |
Bread Savings CD rates
| Term | APY | Source |
|---|---|---|
| 6 months | 4.00% | Bread, as of 09/25/2026 |
| 9 months | 4.30% | Bread, as of 09/25/2026 |
| 12 months | 4.25% | Bread, as of 09/25/2026 |
| 18 months | 4.40% | Bread, as of 09/25/2026 |
| 2 years | 4.35% | DepositAccounts, updated 09/25/2026 |
| 3 years | 4.40% | DepositAccounts, updated 09/25/2026 |
| 5 years | 4.50% | DepositAccounts, updated 09/25/2026 |
How 4.00% compares
| Option | Rate | Source / as of |
|---|---|---|
| Bread Savings HYSA | 4.00% APY, variable | breadfinancial.com, as of 09/25/2026 |
| Bread Savings 18-month CD | 4.40% APY, fixed | breadfinancial.com, as of 09/25/2026 |
| Marcus by Goldman Sachs Online Savings | 3.50% APY, variable | marcus.com, as of Sept 24, 2026 |
| Synchrony High Yield Savings | 3.30% APY, variable | synchrony.com, as of 9/24/2026 |
| American Express High Yield Savings | 3.10% APY, variable | americanexpress.com, as of 9/24/2026 |
| Capital One 360 Performance Savings | 3.10% APY, variable | capitalone.com, effective 9/24/2026 |
| Ally Bank Savings | 3.00% APY, variable | ally.com, as of 09/24/2026 |
| A-rated-or-better 5-year MYGAs | ~5.50%-6.05%, fixed for the term | public carrier rate sheets, October 14, 2026 |
Rates expire like milk.
The best MYGA, CD and savings rates change every few weeks. Get a short email when a rate on this page changes.
We’ll email you when a rate on this page changes. Hans Goldstein · NPN 20602398.
Rather talk it through? Or book 15 minutes on Hans’s calendar.
What I like
- 4.00% is well above the big online banks (Marcus 3.50%, Ally 3.00%) checked the same day.
- Strong CD lineup, including one of the top 5-year CDs nationally.
- Low $100 opening deposit.
What to watch
- No checking or ATM access. Money moves by transfer to a linked bank.
- $100 must go in as one deposit to open.
- CD minimum is $1,500 and CDs renew automatically at maturity at the base rate then in effect.
- The rate is variable and interest is taxed every year.
Bread Savings HYSA vs. a 5-year MYGA
A savings account is the right home for emergency money. For money you will not need for three to five years, a multi-year guaranteed annuity fixes the rate for the term and defers the tax.
| $250,000 for 5 years | Bread Savings HYSA | 5-yr MYGA at 5.50% |
|---|---|---|
| Rate | 4.00% APY, variable (assumed to hold all 5 years) | 5.50% fixed for the term |
| Tax on interest | Every year (1099-INT) | Deferred until withdrawn |
| Value after 5 years, after 24% federal tax | ~$290,400 | ~$308,300 (tax paid at the end) |
| Protection | FDIC, $250K per ownership category | Insurer claims-paying ability + state guaranty association (limits vary by state) |
| Getting money out | No penalty; the rate can change any day | Surrender charge above the free-withdrawal amount; IRS 10% penalty before 59½ |
About $17,900 more after tax on the MYGA if the savings rate never moved (24% federal bracket, state tax ignored). Savings rates are variable, so the real gap depends on where the rate goes. Emergency money belongs in savings; a MYGA is for money you will not need for the full term. Fixed annuity benchmark: carriers rated A or better topped out around 5.50% to 6.05% on 5-year compound-interest MYGAs, per public carrier rate sheets, October 14, 2026. Rates vary by state, premium and carrier.
Annuity vs CD · Current MYGA rates · HYSA or MYGA for 3-year money
Related: Best HYSA rates · Best 5-year CD rates
Bread Savings HYSA: FAQ
What is the Bread Savings HYSA rate?
4.00% APY, per Bread Financial ("All Bread Savings APYs are accurate as of 09/25/2026"). The rate is variable.
Is Bread Savings FDIC insured?
Yes. Bread Savings deposits are held at Comenity Capital Bank (FDIC cert 57570), FDIC-insured up to $250,000 per depositor, per insured bank, per ownership category.
Is Bread Savings the same as Comenity Direct?
Yes. Comenity Direct was renamed Bread Savings; the accounts are provided by Comenity Capital Bank, a Bread Financial company.
What is the minimum deposit?
$100 to open a high-yield savings account, deposited in a single transaction; $1,500 to open a CD. The maximum is $1 million per account.
What are Bread Savings CD rates?
Per Bread (as of 09/25/2026): 6 months 4.00% APY, 9 months 4.30%, 1 year 4.25%, 18 months 4.40%. DepositAccounts (updated 09/25/2026) lists 2 years 4.35%, 3 years 4.40% and 5 years 4.50%.
Bread savings or a MYGA for longer money?
For money you can leave alone 3 to 5 years, a MYGA fixes the rate and defers tax. A-rated-or-better insurers paid about 5.50% to 6.05% on 5-year MYGAs on October 14, 2026.
My take
Bread Savings pays 4.00% APY with a $100 minimum, one of the better no-strings savings rates available, and its CDs are near the top of the market. For three-to-five-year money, compare the 5-year CD and a MYGA side by side.
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) and is not affiliated with Bread Savings. He does not sell or earn anything on bank accounts. Rates are copied from the sources named, with the as-of date each source prints; savings rates are variable, so confirm the current rate before opening. MYGA figures are illustrations, not quotes.
Run the MYGA vs savings math for your situation
Talk to Hans Goldstein, a licensed independent insurance producer.
Bread Savings HYSA pays 4.00% APY, variable (accurate as of September 25, 2026). A-rated 5-year MYGAs were paying about 5.50% to 6.05% on October 14, 2026, fixed for the term and tax-deferred.
Send your details. Within one business day you get a written side-by-side sized to your dollar amount and term, and a free 15-minute call if you want one.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
We’ll email it to you. Hans replies within one business day. Privacy Policy.
Related reading
- HYSA hub: top 12 banks ranked
- Marcus by Goldman Sachs review
- Ally Bank review
- SoFi review
- Synchrony Bank review
- Discover Bank review
- MYGA vs. HYSA full comparison
- Current best MYGA rates
This page is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific bank product. APYs change frequently (typically monthly), and the rates shown here are approximations as of the date above. Always confirm current rates and fees directly on the bank's website before opening an account. Hans Goldstein is an independent licensed insurance producer (NPN 20602398); he does not receive compensation from any bank discussed on this page. FDIC insurance limits apply ($250,000 per depositor, per ownership category, per insured bank). Annuity products mentioned on this page are insurance contracts with surrender charges and are regulated by state insurance commissioners; they are not FDIC-insured. Always read the actual contract and consult a licensed advisor before purchasing any annuity product.