BrioDirect review: advantages, disadvantages and alternatives

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BrioDirect is the online banking arm of Webster Bank, NA, an FDIC member organization. BrioDirect offers a very competitive APY on its high-yield savings account as well as Certificates of Deposit (CDs).

But is BrioDirect worth it without checking accounts, credit cards, loans or long-term investment products?

And how does it compare to other Top online banks? We answer these and other questions in our full test report.

• Competitive annual percentage rate (APY) on savings deposits
• No monthly maintenance fees
• FDIC insured by Webster Bank, NA

What is BrioDirect?

BrioDirect is an online bank that offers two types of deposit products: a high-yield savings account and a variety of CDs. The financial institution is a brand of Webster Bank, NA, a member FDIC and a leading provider of employee benefits solutions.

Webster Bank has assets of over $70 billion and is headquartered in Stamford, Connecticut.

What does it offer?

BrioDirect offers a high-yield savings account and three high-yield CDs with terms ranging from 12 to 36 months. Here's a closer look at both products:

Saving with high returns

BrioDirect offers one of the highest annual percentage yields (APYs) on the market. You will receive 5.30% with an initial deposit of $5,000. You must also maintain a balance of $25 to continue to qualify for the high interest rate. You can open an account online in minutes and there are no monthly account maintenance fees.

Brio offers several ways to fund your account, but the easiest is an ACH deposit from your primary bank. You can also send money via check or wire transfer. You can access funds in your Brio Direct account by using the External Transfer feature to send money to another bank.

Certificates of Deposit (CDs)

On its website, BrioDirect offers three CD terms: Its Promo High-Yield 12-Month CD currently offers an attractive yield of 5.00%. While it's lower than what Brio offers on its savings account, it's a fixed rate, so the APY doesn't change throughout the 12-month term. Plus, the minimum deposit is just $500, while the minimum for a savings account is $5,000.

Unfortunately, BrioDirect's other two CDs leave a lot to be desired. At the time of writing, APYs are a lackluster 2.30% for the 24-month term and 2.45% for the 36-month term. You can find higher yields elsewhere.

Are there any fees?

There are no monthly maintenance fees for a BrioDirect savings account. There are also no fees for purchasing a BrioDirect CD. However, if you withdraw funds before the CD term expires, you will be charged an early withdrawal penalty, which can be up to 9 months' interest, depending on the term.

How does BrioDirect compare?

BrioDirect offers a very attractive savings rate, but the product range is very limited. If you are looking for a more comprehensive online banking solution, there are more suitable options.

Discover Bank is an online bank and FDIC member. It offers a much broader range of products than BrioDirect, including checking and savings accounts, money market, CDs, credit cards, and personal, student and home equity loans. While the APY on savings is lower than BrioDirect (4.25% Comparisons 5.30%), there is no minimum deposit and customers have access to more banking options.

Like Discover Bank, Ally Bank is a full-service online bank. Customers have access to checking and savings accounts, money market, CDs, investment accounts (including retirement accounts), credit cards, mortgages and auto loans. Ally Bank's high-yield savings accounts also rank behind BrioDirect (4.20% Comparisons 5.30%); however, there are no monthly maintenance fees and you can use Ally's RoundUp Savings feature to boost your balance. Plus, the CD interest rates are better than BrioDirect's.

How do I open an account?

According to BrioDirect, it only takes a few minutes to open an account online. You will need the following: your smartphone, contact details, driver's license, passport or national ID card and social security number.

Is it safe and secure?

BrioDirect is a division of Webster Bank, NA, a reputable bank. BrioDirect uses the same protections as most banks, including password requirements, facial recognition, one-time passwords, and security questions. It also uses multi-factor authentication. And your deposits are insured by the FDIC up to $250,000.

How do I contact BrioDirect?

You can reach BrioDirect's customer service center by phone at 1(877) 369 – 2746 (BRIO) during business hours: weekdays from 8:00 a.m. to 8:00 p.m. ET and Saturdays from 8:30 a.m. to 3:00 p.m. ET. The bank's mailing address is: Webster Bank, 1 Jericho Plaza, Jericho, NY 11753 (Attn: BrioDirect Deposit Operations). We could not find an email address on the company's website.

Is it worth it?

If you have over $5,000 to deposit and are looking for a solid return with low risk, BrioDirect is worth considering. The high-yield APY on savings accounts is among the best rates of other leading online banks. If you can't meet the high opening deposit requirements or want more from an online bank, including checking, credit cards, and other options, you may want to look elsewhere. Unfortunately, with the exception of the 12-month promo CD, Brio's APYs on CDs are mediocre at best.

BrioDirect Features

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