Synchrony Bank Review: CD Rates and Savings
Synchrony offers some of the highest savings and CD rates. But there are downsides. Read this review before you open an account.
 | |||
 | |||
Overall Score | 4.3 | ||
Savings | 5.0 | ||
Money Market | 4.0 | ||
Customer Service | 4.0 | ||
Pros and Cons
- Savings with ATM card
- High APY
- All balance tiers receive same rate
- No checking account
- $2,000 minimum deposit for CDs
- Limited customer service hours
Bottom Line
Good online bank offering high interest rates
Synchrony Bank has gotten popular in recently years. Its online-only model allows it to minimize fees and offer better interest rates to customers.
It's not a full-service bank though. Synchrony offers primarily savings products. But they do offer flexibility in how you can access your funds.
Synchrony Bank claims to have some of the highest APYs and lowest fees in the industry, but there are some downsides.
Keep reading to see how this online bank stacks up in our eyes.
How it Works
You'll find several deposit products at Synchrony Bank:
Let's go over each product.
High Yield Savings
Synchrony Bank's High Yield Savings offers slightly higher interest rates than competitors. There is no account minimum and no service fees.
A huge perk is that you get an ATM card. You can use any ATM banks with the Plus or Accel logo without fees. And if you do go out of network, Synchrony will reimburse ATM fees up to $5 per statement cycle. This flexibility allows you to get cash fast.
Federal regulations limit transfers/withdrawals to just 6 per statement cycle. Usually, banks will charge a fee if you exceed it. However, Synchrony does not charge for excessive withdrawals. But they could shut down your account if you do it often. ATM withdrawals don't count.
- Great Rates + Safety = Peace of Mind
- Member FDIC
High Yield Savings
Money Market
The Money Market account is kind of a combination of a checking and savings account. You get the ability of check writing. The first order of checks is free. The APY isn't as high as the Savings account, but you do get more flexibility in how you can use and access your money.
CDs
Synchrony Bank offers CDs from 3-month to 5-year terms with higher-than-average interest rates. The APY for a 12-month CD is higher than what many competitors offer.
There is a minimum deposit of $2,000 to open a CD with Synchrony. And you must leave your money in there for the whole length of the term, or you'll incur a penalty. If you don't need your money for at least 1 year, you'll earn a higher APY than with the savings account. For anything less than a year, you're better off with the savings account.
- Up to 3.10% APY
- Up to 5 years
- $2,000 minimum opening deposit
- Daily Compounding Interest
- FDIC Insured
Certificate of Deposit
IRA Money Market
You can rollover existing IRA contributions to a Synchrony IRA Money Market account. The interest rate isn't the highest, but it will provide a secure place to park your retirement savings. You don't need to worry about the fluctuations of the stock market. And there are tax benefits.
You can make additional deposits at any time, subject to IRS contribution limits
- 1.20% APY
- No minimum deposit to open account
- Ability to open Roth or traditional IRA account
- Make deposits at any time rather than waiting for a maturity date
- FDIC Insured
IRA Money Market Account
IRA CDs
Synchrony Bank also offers IRA CDs. An advantage of investing your IRA contributions in a CD is that you'll know exactly how much your savings will grow. The IRA CDs have the same rates as the standard CDs, plus they offer tax benefits. You can choose between a Traditional or a Roth IRA.
The returns are lower than what you could get with a brokerage IRA account investing in stocks. This is best for those who want stability. For example, older people who don't want to risk their investments close to retirement.
- Up to 3.10% APY
- Up to 5 years
- $2,000 minimum opening deposit
- Ability to open Roth or Traditional IRA
- Ability to add funds during 10-day grace period after CD maturity
- FDIC Insured
IRA CD
Synchrony Bank Credit Cards
Synchrony also offers a huge lineup of over 120 credit cards. Most are co-branded cards with popular retail partners. Here are our top picks.
- Sam's Club Mastercard. You get 5% cash back on gas on up to $6,000 in gas purchases per year (then 1%). You also get 3% on dining out and travel, and 1% on everything else. This card offers one of the best gas rewards we've seen. You need to be a Sam's Club member.
- Amazon Store Card. This card is really worthwhile if you're an Amazon Prime member. Members get 5% cash back on all Amazon orders. If you regularly shop on Amazon, this could be huge savings. You can also choose interest-free financing for larger purchases.
- Walmart Credit Card. For Walmart shoppers, you get 3% cash back on all Walmart.com purchases, 2% cash back on gas at Walmart or Murphy USA, and 1% on Walmart in-store purchases. If you get the Mastercard version, you'll also earn 1% cash back on all other purchases.
- Lowe's Advantage Card. Have an upcoming home improvement project? The Lowe's card gives you 5% off all Lowe's purchases. Or you can choose 6-month interest-free financing on orders of $299 or above. If you have a bigger project over $2,000, you can ask for special project financing at low interest rates.
Reasons We Like Synchrony Bank
 |
| © CreditDonkey |
- Competitive rates. Synchrony offers some of the highest interest rates in the market. The APY for their Savings and CD accounts are higher than other popular online banks.
- No minimum balance requirements for Savings or Money Market accounts. There are no minimum deposits or balance requirements for Synchrony's Savings or Money Market accounts. So you can start saving and earning interest no matter how little you have. However, there is a minimum deposit of $2,000 for their CDs.
- No service fees. There are no account opening fees or monthly service fees for their deposit products.
- ATM card for Savings. It's very rare for savings accounts to have ATM access. Synchrony's High Yield Savings Account comes with an optional ATM card so you can withdraw savings quickly.
- ATM fee reimbursements. Synchrony will reimburse fees charged by other banks, up to $5 every statement cycle. Synchrony does not charge you for using any ATM with the Plus or Accel logo.
- Loyalty perks. Synchrony offers rewards for customers with high balances and long-term loyalty. You're automatically enrolled in Synchrony Bank Perks when you open an account. You reach different status tiers based on your balance OR the length of time you've been a customer. Perks include hotel and rental car discounts, restaurant offers, and value-added amenities. If you achieve the highest status, you get unlimited ATM reimbursements.
- Identity theft services. Each customer of Synchrony Bank's deposit products is automatically enrolled in Identity Theft Resolution Services by CyberScout.
Why You Might Look Elsewhere
- There's only one physical branch. If you prefer in-person bank transactions, you won't like Synchrony Bank. They only have one branch in New Jersey. All transactions must take place online, via ATM, wire transfer, or by phone.
- They don't offer checking accounts. Synchrony Bank doesn't have the services of a full-service bank. They are primarily a savings bank. The closest you will get to a checking account is the Money Market account. You can make ATM withdrawals and request checks for this account (the first set is usually free).
- Their mobile options leave a lot to be desired. Synchrony doesn't have a mobile app for its banking products. However, it does have a full mobile website. You can check your activity, transfer funds, and make mobile check deposits. You can still do your banking anywhere with your smartphone.
Customer Service
 |
| © CreditDonkey |
Synchrony Bank gives you 24/7 access to their automated system to check on your accounts. If you want to talk to a representative, their hours are Monday through Friday 8 AM - 10 PM (ET) and Saturdays 8 AM - 5 PM (ET).
You can reach Synchrony Bank at 1-866-226-5638.
If you have questions on your Synchrony Bank credit card, you should call the number on the back of your card.
How it Compares
Ally: If you need a checking account with your other savings vehicles, Ally offers free interest checking. It also has no minimum deposits for CDs, so it's a better choice for smaller investors. It has several CD options to choose from, including a No Penalty and Raise Your Rate CD. Ally is a good choice for beginner savers with checking needs.
|  | |
| | |
Synchrony Bank | Ally Bank | |
|---|---|---|
High Yield Savings - | Online Savings Account - | |
Benefits and Features | ||
| Savings | 2.25% APY. No monthly service fee and no minimum deposit. An ATM card is provided for easy withdrawal. Synchrony will refund ATM fees for other banks up to $5 per statement cycle | 2.20% APY. No monthly service fee and no minimum deposit. |
| CD | 0.75% to 3.10% APY. Terms of 3 months to 5 years. Minimum deposit of $2,000 to open. | 0.75% to 3.10% APY. Terms of 3 months to 5 years. 12-month CD APY of 2.75%. No minimum deposit to open. |
| Money Market | 1.20% APY. No monthly service fee and no minimum deposit. | 0.90% APY under $25,000; 1.00% APY $25,000 or more. No monthly service fee and no minimum deposit. |
| Customer Service | Mon-Fri 8am - 10pm (ET); Sat-Sun 8am - 5pm (ET) | |
| ATMs | Any ATMs with Plus or Accel logos | Over 43,000 no-fee Allpoint ATMs |
| Locations | ||
Synchrony Bank: Pricing information from published website as of 3/22/2019. Ally Bank: Pricing information from published website as of 03/21/2019. | ||
Barclays: Barclays offers savings and CD accounts. You don't need a minimum opening balance at Barclays, just like Synchrony. The largest difference, though, is that Barclays doesn't have any ATMs. If you often need quick access to your funds, Synchrony will make your life easier with their ATMs located throughout the US.
|  | |
| | |
Synchrony Bank | Barclays | |
|---|---|---|
High Yield Savings - | Online Savings Account - 2.20% APY - | |
Benefits and Features | ||
| Savings | 2.25% APY. No monthly service fee and no minimum deposit. An ATM card is provided for easy withdrawal. Synchrony will refund ATM fees for other banks up to $5 per statement cycle | 2.20% APY. No monthly service fee and no minimum deposit. |
| CD | 0.75% to 3.10% APY. Terms of 3 months to 5 years. Minimum deposit of $2,000 to open. | 0.35% to 3.10% APY. Terms of 3 months to 5 years. 12-month CD APY of 2.75% APY. No minimum deposit to open. |
| Customer Service | Mon-Fri 8am - 10pm (ET); Sat-Sun 8am - 5pm (ET) | |
| Locations | ||
Synchrony Bank: Pricing information from published website as of 3/22/2019. Barclays: Pricing information from published website as of 3/22/2019. | ||
Discover Bank: Discover offers a cashback checking account with no minimum balance requirement or service fees. It's a great choice for those looking for checking and savings together. Rates are very comparable to Synchrony's. Discover also has a huge ATM network throughout the U.S. so you can easily access your money.
|  | |
| | |
Synchrony Bank | Discover Bank | |
|---|---|---|
High Yield Savings - | Discover Online Savings - $150 Cash Bonus - | |
Benefits and Features | ||
| Savings | 2.25% APY. No monthly service fee and no minimum deposit. An ATM card is provided for easy withdrawal. Synchrony will refund ATM fees for other banks up to $5 per statement cycle | 2.10% APY. No monthly service fee and no minimum deposit. |
| CD | 0.75% to 3.10% APY. Terms of 3 months to 5 years. Minimum deposit of $2,000 to open. | 0.35% to 3.10% APY. Terms of 3 months to 10 years. 12-month CD APY of 2.65%. 5-year CD APY of 3.00%. Minimum deposit of $2,500 to open. |
| Money Market | 1.20% APY. No monthly service fee and no minimum deposit. | 1.95% APY under $100,000; 2.00% APY $100,000 or more. No monthly service fee. $2,500 minimum deposit. |
| Customer Service | Mon-Fri 8am - 10pm (ET); Sat-Sun 8am - 5pm (ET) | |
| ATMs | Any ATMs with Plus or Accel logos | |
| Locations | ||
Synchrony Bank: Pricing information from published website as of 3/22/2019. Discover Bank: Pricing information from published website as of 3/21/2019 | ||
Capital One 360: None of Capital One 360's deposit accounts have minimum balance requirements. However, the interest rate on the savings and money market accounts are below the competition (unless you maintain a very high balance). A unique thing about 360 is that it also offers a solid teen checking and kids savings account.
|  | |
| | |
Synchrony Bank | Capital One | |
|---|---|---|
High Yield Savings - | Capital One MMA - | |
Benefits and Features | ||
| Savings | 2.25% APY. No monthly service fee and no minimum deposit. An ATM card is provided for easy withdrawal. Synchrony will refund ATM fees for other banks up to $5 per statement cycle | 1% APY. No monthly service fee and no minimum deposit. |
| CD | 0.75% to 3.10% APY. Terms of 3 months to 5 years. Minimum deposit of $2,000 to open. | 0.60% to 3.10% APY. Terms of 6 months to 5 years. 12-month CD APY of 2.70%. No deposit to open. |
| Money Market | 1.20% APY. No monthly service fee and no minimum deposit. | 0.85% APY up to $9,999.99; 2.00% APY $10,000 or more. No monthly service fee and no minimum deposit. |
| Customer Service | Mon-Fri 8am - 10pm (ET); Sat-Sun 8am - 5pm (ET) | |
| ATMs | Any ATMs with Plus or Accel logos | Over 39,000 no-fee Capital One & Allpoint ATMs |
| Locations | ||
Synchrony Bank: Pricing information from published website as of 3/22/2019. Capital One: Pricing information from published website as of 3/21/2019 | ||
PNC Bank: While PNC Bank is a physical bank, you don't need to live near a branch to open an online account. Since PNC is not an online bank, don't expect high interest rates. It does, however, offer some sweet cash bonuses. PNC's signature product is the Virtual Wallet account that comes with financial tools to help you budget, track spending, and set up goals.
|  | |
| | |
Synchrony Bank | PNC Bank | |
|---|---|---|
High Yield Savings - | Virtual Wallet with Performance Select Checking - $300 Cash Bonus - | |
Benefits and Features | ||
| Savings | 2.25% APY. No monthly service fee and no minimum deposit. An ATM card is provided for easy withdrawal. Synchrony will refund ATM fees for other banks up to $5 per statement cycle | 0.01% APY (0.05% APY - 0.10% APY Relationship rates) minimum deposit of $25. $5 monthly service charge unless you have 1) $300 monthly average monthly balance, or 2) if you are under 18 years old, or 3) set up an Auto Savings transfer of $25 or more each month from your PNC Checking account to your Savings account; 2.35% APY High Yield Savings. No minimum balance. No minimum deposit. $0 Monthly charge. Minimum balance to earn interest is $1.00. |
| CD | 0.75% to 3.10% APY. Terms of 3 months to 5 years. Minimum deposit of $2,000 to open. | 0.04% - 1.50% APY. Minimum deposit $1,000 - $10,000 (depending on account type and term). Terms range from 7 days to 10 years. |
| Money Market | 1.20% APY. No monthly service fee and no minimum deposit. | 0.03% - 0.17% APY. Minimum deposit is $100. Maximum deposit is $10,000. Monthly service charge of $12 unless you have $5,000 average monthly balance. |
| Customer Service | Mon-Fri 8am - 10pm (ET); Sat-Sun 8am - 5pm (ET) | Mon-Fri 7:00 am - 10:00 pm, (ET) Sat & Sun 8:00 am - 5:00 pm (ET) |
| ATMs | Any ATMs with Plus or Accel logos | |
| IRA CD | 0.75% to 3.10% APY. Terms of 3 months to 5 years. Minimum deposit of $2,000 to open. | 0.04% - 1.50% APY. Minimum deposit $1,000 - $10,000 (depending on account type and term). Terms range from 7 days to 10 years. |
| Locations | 2,600 PNC branches across 19 states. | |
Synchrony Bank: Pricing information from published website as of 3/22/2019. PNC Bank: Pricing information from published website as of 3/21/2019 based on 19899 zip code. | ||
Marcus by Goldman Sachs: Marcus by Goldman Sachs also offers excellent rates. They only offer two products: savings and CDs. Their CD rates are competitive with Synchrony's and only requires $500 minimum to open.
You might also consider:
- Earn 2.25% APY on all balance tiers
- No monthly maintenance fee
- Minimum balance to earn APY is $1
- Member FDIC
HSBC Direct Savings - 2.25% APY
Open a CIT Bank 2.45% APY Savings Builder High Yield Savings Account
Smart Saver - Earn 2.19% Annual Yield
Best Synchrony Bank Promo
- Great Rates + Safety = Peace of Mind
- Member FDIC
- 1.20% APY
- $0 minimum opening deposit
- No minimum balance requirement
- No fees to open or maintain account
- ATM card
- Daily Compounding Interest
- FDIC Insured
- Up to 3.10% APY
- Up to 5 years
- $2,000 minimum opening deposit
- Daily Compounding Interest
- FDIC Insured
- Up to 3.10% APY
- Up to 5 years
- $2,000 minimum opening deposit
- Ability to open Roth or Traditional IRA
- Ability to add funds during 10-day grace period after CD maturity
- FDIC Insured
- 1.20% APY
- No minimum deposit to open account
- Ability to open Roth or traditional IRA account
- Make deposits at any time rather than waiting for a maturity date
- FDIC Insured
High Yield Savings
Money Market
Certificate of Deposit
IRA CD
IRA Money Market Account
Bottom Line
- Great Rates + Safety = Peace of Mind
- Member FDIC
High Yield Savings
Synchrony Bank offers several savings options with the ability to access your cash. Their APYs are among the higher rates in the industry. But their customer service is more limited.
If you can handle your own finances online without needing in-person or off-hours help, you may find that Synchrony meets your needs. If not, there are many other online banks that may suit your requirements.
Disclaimer: Opinions expressed here are author's alone. Please support CreditDonkey on our mission to help you make savvy decisions. Our free online service is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content.
Disclaimer: This content was first published on March 14, 2018. This content may have been updated on February 12, 2019. Information including rates, fees, terms and benefits may vary, be out of date, or not applicable to you. Information is provided without warranty. Please check the bank's website for updated information.
More from CreditDonkey:
|
|
|
