Table Of Content
Synchrony is an online bank offering a variety of deposit accounts including high yield savings and CDs.
While Synchrony does not have any physical branches, it does have a solid reputation for offering impressive rates and minimal fees. The line of CDs ranges from three months to five years with different terms including standard CDs and no penalty CDs.
This should enable you to find the ideal CD product to suit your preferences and financial requirements. But, do Synchrony Bank CD rates stack up against the competition? Here we’ll explore Synchrony CDs in more detail.
Synchrony CDs
APY Range
Minimum Deposit
Terms
Our Rating
Synchrony CDs
APY Range
Minimum Deposit
Terms
Our Rating
Synchrony Bank CD Rates
Synchrony Bank CDs offer highly competitive rates. Many traditional banks fail to offer rates comparable or higher than the national average rate, so online banks are typically more competitive. However, Synchrony rates can also stand up against other online banks. For example, Synchrony's 6-month CD rates are among the highest in the market.
Even the lowest rate, which is offered with the three-month standard CD is higher than the national average. This is quite impressive, as many banks offset the lower term with a far lower rate. So, even if you don’t want to commit your funds for a long period, you can still access a competitive rate.
CD Term | APY |
|---|---|
3 Months | 0.25% |
6 Months | 4.80% |
9 Months | 5.10% |
12 Months | 4.80% |
11 Months – No Penalty | 0.25% |
18 Months | 4.50% |
24 Months | 4.20% |
36 Months | 4.15% |
48 Months | 4.00% |
60 Months | 4.00% |
How Much Can You Earn If You Deposit $100,000 Today?
Here are the expected earnings (before taxes), assuming a deposit of $100,000 into Synhcrony CD, in the event that interest is compounded daily and there is no early withdrawal penalty:
CD Term | Interest Earned |
|---|---|
3 Months | $556
|
6 Months | $2,118
|
9 Months | $3,232
|
12 Months | $4,538
|
11 Months – No Penalty | $3,448
|
18 Months | $6,884
|
24 Months | $8,852
|
36 Months | $13,567
|
48 Months | $18,487
|
60 Months | $23,620
|
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How Synchrony Bank CDs Work
The standard Synchrony Bank CDs offer terms of three months to five years, with the rates weighted towards terms longer than 12 months. You can withdraw the interest accumulated on your CD without any penalty, but, if you do need to withdraw some or all of your principal a penalty will apply.
The penalty is calculated according to your CD term. If your CD term is 12 months or less, the penalty is 90 days of simple interest. This increases to 180 days of simple interest if your CD term is 12 to 48 months and 365 days for terms of over 48 months.
CD Term | Early Withdrawal Penalty |
|---|---|
3 Months | 90 days of interest |
6 Months | 90 days of interest |
9 Months | 90 days of interest
|
12 Months | 90 days of interest |
11 Months – No Penalty | /
|
18 Months | 180 days of interest
|
24 Months | 180 days of interest |
36 Months | 180 days of interest
|
48 Months | 365 days of interest
|
60 Months | 365 days of interest |
Synchrony also has a Bump Up CD, which allows you to increase the APY rate once during the term to enjoy a higher rate if the rates increase in the intervening months. There is only one term option for the Bump Up CD, 24 months, and the above early withdrawal penalties apply if you need to withdraw your principal before the CD matures.
If you are concerned about needing access to your funds before the CD maturity date, Synchrony does have an 11 month No Penalty CD. This has a slightly lower rate compared to the standard Synchrony CDs, but you can withdraw all or some of your funds after the first six days of funding the CD with no penalty.
The final Synchrony CD option is an IRA CD. This offers a highly competitive rate, which is comparable with the longer term standard Synchrony CDs and there is only a 12 month term option. However, it does offer access to the tax advantages of a retirement account.
All Synchrony CDs have no minimum balance requirements and no monthly maintenance fees.
Synchrony CD Rates vs Synchrony Savings Rates
In addition to its CDs, Synchrony Bank also offers a high yield savings account. Both types of accounts have no minimum balance requirements or maintenance fees, but there are some key differences between these accounts that may influence which is the better option for you.
The Synchrony high yield savings account offers a higher rate than the various CDs with a term of less than 12 months. However, longer term CDs do offer higher rates.
The main reason that the savings account offers a generally lower rate compared to the CDs is that you have immediate access to your funds. Since it is a high yield account, you are limited to six withdrawals per month, but you can transfer funds out or withdraw cash with the optional ATM card.
This means that you don’t need to worry about penalties or losing accumulated interest if you suddenly have a cash emergency.
It is also important to note that once you fund your CD, you cannot make additional deposits. So, if you want to regularly save, the high yield savings account is better suited to your needs.
CDs | Savings | |
|---|---|---|
APY | UP TO 5.10 % | 4.75% |
Minimum Deposit | $0 | $0 |
Fees |
$0 | $0 |
Synchrony CD Rates vs Synchrony Money Market Account
Synchrony Bank also offers a money market account. This account has no minimum balance requirements, but it has a lower rate than the Synchrony CDs, except the three-month CD, which offers the same rate.
The critical difference between CDs and money market accounts is in the account's functionality. While CDs lock in your funds for a set period, the money market account offers check-writing abilities and ATM access. While Synchrony does not offer a checking account, the money market account provides a good compromise. You can have your salary directly deposited into the account and use it to pay for your daily expenses.
This makes the two accounts very different. Although the money market account has an impressive APY on balances, it is designed to allow you to pay in funds and access your money without restrictions. On the other hand, a CD is designed to provide you with a fixed-term savings option to receive a guaranteed return on your funds.
About Synchrony Bank
Synchrony is a fully online bank that has been established since 2003. It was created with the intention to provide technology and financial solutions to help its customers towards their goals.
As an online bank, Synchrony does not have any physical branches, but it has a generous ATM policy, reimbursing customers up to a monthly limit for domestic ATM fees charged by the machine owner.
Synchrony also has established a solid reputation for offering impressive rates on its savings accounts, CDs, and money market accounts. It also offers a line of credit cards, but the bank does not currently offer a checking account.
Overall, Synchrony is a good bank, but if you are interested in moving all of your day-to-day finances to a new bank, you may find Synchrony a little lacking.
FAQs
Does Synchrony Bank Offer No Penalty CD Rates?
Yes, Synchrony Bank is included on our best no-penalty CDs list with its 11 month no-penalty CD, which allows you to make withdrawals at any time apart from the first six days after funding the account. Synchrony
Does Synchrony Bank offer promotions on CDs?
Synchrony Bank does have its Bump Up CD, which offers the ability to bump up your rate once during the 24 month term if the overall market rates have increased since you opened the account. This could be considered a promotional product as it may not be continuously available.
Do Synchrony Bank CDs come with a grace period?
There is a 10 day grace period after your CD matures. During this time, you can add funds to the account, make withdrawals or close the account without any penalties.
How Synchrony Bank CDs interest are calculated?
Interest on Synchrony CDs is compounded daily and added to your account monthly. You can withdraw the accumulated interest in your CD account with no penalty, but this will compromise the overall return of your CD over its full term.
How does the Synchrony Bank early withdrawal penalty work?
The withdrawal penalty applies to all Synchrony CDs with the exception of the no penalty CD. The amount of the penalty is calculated according to a number of days of simple interest and the length of your CD term.
This can vary from 90 days to 365 days of simple interest, with shorter term CDs attracting a lower penalty. For example, if you have a CD with an 18 month term, the early withdrawal penalty is 180 days, but a three month CD has a penalty of 90 days.
Compare Synchrony CDs
Synchrony CDs vs Marcus CDs
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Synchrony CDs vs. Citibank CDs
Synchrony Bank offers higher CD rates than Citibank on most terms. Compare CD rates, minimum deposit and early withdrawal fees.
Synchrony CDs vs. Ally CDs
Synchrony Bank and Ally CDs offer competitive rates, including no penalty CDs. Which one is the winner? Check out our full comparison.
Synchrony CDs vs. Discover CDs
Synchrony Bank offers better CD rates than Discover for most terms. Compare CD rates, minimum deposit, and early withdrawal fees.
How We Rate Certificates of Deposits: Our Methodology
The Smart Investor team has thoroughly examined certificate of deposit (CD) offerings from various banks, considering multiple factors to provide a comprehensive evaluation. Here's how we rated them across four key categories:
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CD Rates (50%): We meticulously analyzed the interest rates offered by each bank on their certificate of deposit (CD) products. Higher ratings were awarded to banks offering competitive rates that provide maximum returns for customers' investments. Factors such as the yield curve, current market conditions, and consistency of rates were considered to assess the attractiveness of each bank's CD rates.
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CD Features (30%): This category evaluated the features associated with each bank's certificate of deposit offerings. Factors considered include the variety of terms available, early withdrawal penalties, minimum deposit requirements, and any additional features or benefits. Higher ratings were given to banks offering a diverse range of CD terms, reasonable early withdrawal fees, and flexible options to meet customers' investment needs.
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Customer Experience (10%): A positive customer experience is paramount, even when investing in CDs. We assessed each bank's performance in this area, considering factors such as the ease of opening a CD account, the responsiveness of customer service, and overall user satisfaction. Higher ratings were assigned to banks with efficient account opening processes, helpful customer support, and a track record of satisfying customers.
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Bank Reputation (10%): The reputation of a bank is a critical consideration when investing in CDs. We evaluated each bank's reputation based on factors such as financial stability, regulatory compliance, and public perception. Higher ratings were given to banks with a solid reputation for reliability and trustworthiness, ensuring customers' investments are safe and secure.
By considering these categories and assigning appropriate weights to each, our review aims to provide valuable insights to help individuals make informed decisions when investing in certificate of deposits.
