Comenity Direct Review 2020

Published March 2020 by Libby Wells

AT A GLANCE
4.6
  • start icon
  • start icon
  • start icon
  • start icon
  • start icon
  • start icon
  • start icon
  • start icon
  • start icon
  • start icon

Bankrate Score

bank-logo

High APYs

low-fees Created with Sketch.

Low Fees

low-min-deposit Created with Sketch.

Low Minimum Deposit

Comenity is good for savers looking for competitive yields on savings accounts and a variety of certificate of deposit options. It suits consumers who are comfortable making mobile deposits and monitoring their accounts online. It is not a good fit for people who get paid in cash, need to write checks or prefer brick-and-mortar banking.

  • CDs
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    4.3
  • Savings
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    5.0
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    Goldman Sachs Bank USA

    Member FDIC

    CD

    1.85 % APY

    1 yr

    Term

    $ 500

    Min. deposit

    NBKC Bank

    Member FDIC

    Checking account

    0.75 % APY

    $ 5

    To open

    $ 0

    To avoid fees

    TIAA Bank

    Member FDIC

    Checking account

    0.50 % APY

    $ 100

    To open

    $ 0

    To avoid fees

    Overall

    4.6

    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon

    Bankrate Score

    Although Comenity is well-known as the bank behind many branded retail credit cards, it also offers competitive yields on savings accounts and CDs. Minimum opening balance requirements are low. Comenity Direct is insured by the FDIC.

    What we like

    • Offers higher yields on deposits than traditional brick-and-mortar banks.

    • Minimum deposit requirements are low to reasonable.

    • No monthly maintenance fee charged for its high-yield savings account.

    What we don't

    • Customers can’t deposit cash or write checks.

    • There are no physical bank branches or ATMs.

    • It does not offer money market accounts.

    CD rates

    4.3

    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon

    Bankrate Score

    OTHER CD OFFERS YOU MAY LIKE
    Goldman Sachs Bank USA

    Member FDIC

    CD

    1.85 % APY

    1 yr

    Term

    $ 500

    Min. deposit

    Comenity Direct offers one-year, two-year, three-year, four-year and five-year CDs, with yields that are far better than what the average brick-and-mortar bank pays. Interest accrues and compounds daily, and minimum deposit requirements are reasonable. Customers can earn interest on up to $10 million in deposits.

    What we like

    • The minimum deposit to open any CD is only $1,500.

    • Customers can monitor their CD accounts using the Comenity Direct mobile app.

    • There is no charge for automated clearing house transfers (ACH) and incoming wire transfers.

    What we don't

    • There are no CDs with terms below one year, so consumers wanting short-term deposits will have to look elsewhere.

    Savings accounts

    5.0

    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon
    • start icon

    Bankrate Score

    Comenity Direct offers a high-yield savings account with a competitive APY. The minimum deposit requirement is super-low and there are no monthly maintenance fees. Comenity Direct does not have an ATM network or physical branches, so deposits must be done by ACH transfer. You can also deposit checks into your account with the bank’s mobile app.

    What we like

    • Offers a highly competitive yield.

    • You only need to deposit $100 to earn the high APY.

    • You are not charged a fee if your balance falls below the account opening minimum.

    What we don't

    • There are fees for outgoing wire transfers, official check requests and paper statement requests.

    • You cannot deposit cash.

    Bank experience

    Comenity Direct customers cannot visit a physical bank branch, but customer service representatives are available by phone and telephone service hours are generous and include weekends.

    The bank has a mobile app that lets customers make deposits and withdrawals. Since its savings and CD accounts are intended to encourage saving, there is no mobile wallet for bill payment and peer-to-peer payments.

    There are calculators on the website to help customers reach savings goals and determine their emergency savings needs.

    About Comenity Direct

    Although Comenity is well-known as the bank behind many branded retail credit cards, it also offers competitive yields on savings accounts and CDs through its brand Comenity Direct.

    Comenity Direct, which was created in 2018, is a good choice for consumers who like to bank online and want a safe place to deposit their money and watch it grow at competitive yields. This is a bank for savers who do not plan to make frequent withdrawals. If you are looking for checking and money market accounts or need access to a physical bank branch, this is not the bank for you.

    Libby Wells Twitter Created with Sketch. @EAWELLS77

    Libby Wells Twitter Created with Sketch. @EAWELLS77

    Libby Wells, Bankrate's chief copy editor, has more than 30 years of experience as a writer and editor for newspapers, magazines and online publications in South Florida. She has spent most of her career at The Palm Beach Post and Palm Beach Daily News, but she also did a previous stint at Bankrate as the credit card reporter. Libby is a native of Kentucky and a graduate of the University of Kentucky, where she earned a bachelor's degree in journalism. She's an avid fan of the legendary UK Wildcats basketball team.