Synchrony Bank Review: CD, Savings Account, Money Market, and IRA Rates

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Updated on Sunday, November 1, 2020

Synchrony Bank CD rates

You might need a higher-than-average minimum deposit for these certificates of deposit (CDs), but you’ll earn a good interest rate.

Term

APY

3-months

0.15%

6-months

0.25%

9-months

0.35%

12-months

0.60%

18-months

0.60%

24-months

0.65%

36-months

0.70%

48-months

0.70%

60-months

0.80%

  • Minimum opening deposit: $2,000
  • Minimum balance amount to earn APY: $2,000
  • Early withdrawal penalty, which depend on the original term of the CD:
    • 12 months or less: 90 days’ worth of interest
    • 12 months up to 48 months: 180 days’ worth of interest
    • Over 48 months: 365 days’ worth of interest

You’ll need to bring a fairly hefty minimum deposit of $2,000 to open a CD at Synchrony Bank. Still, Synchrony Bank offers a fair amount of flexibility in how you are paid dividends, as well as healthy APYs. You can choose to roll over your interest in the CD account or have it paid out to you directly in the form of a check or an electronic deposit into either an internal or external bank account. You can withdraw interest at any time you choose.

You have a few options once your CD term expires. Typically, it will automatically roll over into another CD of the same term length, but you’ll get a 10-day grace period to make any changes. During this grace period, you can withdraw the cash, add more cash and/or open a new CD with a different term length. This can be especially helpful if you are considering a CD ladder strategy.

Synchrony Bank makes it easy to monitor the maturity of your CDs by sending a notice 30 days before your CD matures to determine what your next steps will be. Not all banks do this, so it is a point in Synchrony Bank’s favor.

How to open a CD account with Synchrony Bank

You can easily open a CD account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth. You’ll also need to provide a government-issued ID, such as a driver’s license. To initially fund the account, you will need to transfer funds from a Synchrony Bank or another bank account by mailing in a personal check, sending a wire transfer or making a mobile deposit.

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How Synchrony Bank’s CD rates compare

While Synchrony Bank doesn’t currently offer the highest rates, they’re still consistently among the top of the pack for our listings of the best CD rates. Although the initial investment seems a bit high, the bank makes up for it with ease of access and competitive rates.

The early-withdrawal penalties at Synchrony Bank are also right on par with many of their competitors. You can rest assured that you won’t be paying inordinately high fees should you need to withdraw your cash early.

Synchrony Bank High Yield Savings account

This account charges no fees, offers unlimited ATM access and has one of the highest savings rates in online banking, as seen in our listing of the best savings accounts.

APY

Minimum Opening Deposit

0.60%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: None; however, the ATM’s owner may charge a separate surcharge fee in order to withdraw cash.
  • ATM fee refund: $5 per statement cycle from U.S. withdrawals.
  • Overdraft fee: None

This is one of the most accessible, high-interest savings accounts for people looking for low fees and low minimum balance requirements. While most banks charge an overdraft fee if you overdraw your account, Synchrony Bank does something different: It may not honor the withdrawal, meaning that you won’t incur an overdraft fee. Like for most savings accounts, interest is compounded daily and credited monthly. The rate is variable, but Synchrony Bank has a history of staying competitive.

With this account, federal Regulation D mandates certain types of telephone and electronic withdrawals, including transfers from savings accounts up to 6 per statement cycle. If you go over that amount, Synchrony Bank reserves the right to close your account for “misuse.” However, the bank offers unlimited ATM transactions, so it shouldn’t be an issue for most savers. Not many other banks do this, which puts Synchrony Bank further ahead.

The High Yield account at Synchrony Bank doesn’t allow you to write checks, but with the access to cash you have with the optional ATM card, it seems like a minor inconvenience compared to the account’s other exemplary features.

How to open a savings account with Synchrony Bank

You can easily open a savings account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth. You’ll also need to provide a government-issued ID, such as a driver’s license.

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How Synchrony Bank’s savings account compares

Synchrony Bank consistently offers one of the best online savings accounts. People looking for a no-minimum-balance account or seeking to grow a small savings account balance would likely find it ahead of the competition. In many ways, it can be considered an almost-perfect account for most savers.

Synchrony Bank money market account

It doesn’t offer high interest rates, but does give you the ability to write checks.

APY

Minimum Opening Deposit

0.50%

$0

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fee: None; however, the ATM’s owner may charge a separate surcharge fee for cash withdrawals.
  • ATM fee refund: $5 per statement cycle from U.S. withdrawals.
  • Overdraft fee: None.

One big difference between Synchrony Bank’s money market and savings accounts is that the money market account offers a lower APY. Also, it allows you to request and write checks using your money market account, whereas the savings account doesn’t offer this option.
The money market account benefits those who are willing to trade a bit of earned interest in favor of writing checks. But if you don’t need to write checks, it may be more worthwhile to consider Synchrony Bank’s High Yield savings account.

Just like with many other types of accounts, your interest rate is variable on Synchrony Bank’s money market account. Instead, CDs at Synchrony Bank offer better APYs than the money market account, but they tie up your capital while it’s invested.

You can still expect the same withdrawal limits dictated by Federal Regulation D on the money market account, meaning that certain types of telephone and electronic withdrawals, including transfers from savings accounts are up to 6 per statement cycle, lest the bank close your account for “misuse.” You’ll also incur few, if any, fees with this account.

How to get Synchrony Bank’s money market account

You can easily open a money market account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth. You’ll also need to provide a government-issued ID, such as a driver’s license.

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How Synchrony Bank’s money market account compares

Synchrony Bank offers exceptional rates on its savings accounts and CDs. However, its money market account is a little underwhelming in the interest rate department. If you’re looking for the best money market account rates, you can easily find better accounts at other banks and credit unions.

However, Synchrony Bank still stands out in the fee department. This account — like its savings account — comes with minimal fees. If you already have an account with Synchrony Bank, this aspect of the account works in your favor.

Synchrony Bank IRA CD rates

These IRA CDs are virtually identical to Synchrony Bank’s regular CDs. However, the fairly high minimum deposit requirements may deter some.

Term

APY

3-months

0.15%

6-months

0.25%

9-months

0.35%

12-months

0.60%

18-months

0.60%

24-months

0.65%

36-months

0.70%

48-months

0.70%

60-months

0.80%

  • Minimum opening deposit: $2,000
  • Minimum balance amount to earn APY: $2,000
  • Early withdrawal penalty, depending on the original term length:
    • 2 months or less: 90 days’ worth of interest
    • 12 months up to 48 months: 180 days’ worth of interest
    • Over 48 months: 365 days’ worth of interest

These IRA CDs work just like Synchrony Bank’s regular CDs, with one exception: They play by the rules of IRA accounts. That means you can open them as a Roth or traditional IRA, complete with all the rules governing these two accounts. Check with your financial advisor before opening an IRA if you haven’t already.

If you need to withdraw your money early, you’ll face an early withdrawal penalty. However, if you are at the age where you need to take required minimum distributions from CD money held in a traditional IRA, Synchrony Bank will waive the early withdrawal penalty.
The account allows you to roll over funds from a pre-existing traditional IRA sponsored by your employer. Also, like other Synchrony Bank accounts, it is insured by the FDIC up to the legal limit.

How to open an IRA CD with Synchrony

You can easily open an IRA CD account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth. You’ll also need to provide a government-issued ID, such as a driver’s license.

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How Synchrony Bank’s IRA CD rates compare

Synchrony Bank’s IRA CDs are very close to offering the top IRA CD rates found on our site. However, there are a few banks offering higher rates on IRA CDs , so if this is your preferred retirement savings option, it may pay to shop around. The account isn’t the best available, but the high rates and ease of use make Synchrony Bank’s IRA CDs a worthy consideration.

Synchrony Bank IRA money market account

This money market account — like the bank’s regular money market account — doesn’t offer the highest rates.

APY

Minimum Deposit to Open

0.50%

$250

  • Minimum opening deposit: $250
  • Monthly account maintenance fee: $0
  • ATM fee: None; however, the ATM’s owner may charge a separate surcharge fee in order to withdraw cash.
  • ATM fee refund: $5 per statement cycle from U.S. withdrawals.
  • Overdraft fee: None.

If you need a bit more flexibility in your retirement savings or can’t afford the minimum deposit requirement of Synchrony’s IRA CDs, you might want to consider its IRA money market account.

You can deposit or withdraw cash at any time. However, you’re still subject to Federal Regulation D that limits certain types of telephone and electronic withdrawals, including transfers from savings accounts up to 6 per statement cycle. Since this is an IRA account, you’ll also need to stick to the rules of whichever IRA you choose — Roth or traditional — lest you end up paying a tax penalty at the end of the year.

However in return for this flexibility and low cash requirement, Synchrony Bank has lowered interest rates on this account. You can earn much higher rates on your retirement savings with Synchrony Bank’s IRA CDs, though you won’t remain as liquid.

How to open an IRA money market account with Synchrony

You can easily open an IRA money market account with Synchrony Bank online. You’ll need to provide some basic identifying information, such as your Social Security number and date of birth. You’ll also need to provide a government-issued ID, such as a driver’s license.

Overall review of Synchrony Bank’s banking products

There is a lot to like at Synchrony Bank. That includes its low-fee, high-yielding savings products, especially its savings account and CDs. You’ve probably seen these accounts written about before, as they consistently offer some of the highest returns in the world of online banking.

However, Synchrony Bank’s money market account falls a bit short in the interest rate department. Once upon a time, money market accounts offered higher interest rates than savings accounts, but today that’s often not true — and Synchrony Bank is no exception.

On the whole, however, Synchrony Bank is a great option for people looking for high interest rates on their savings.