Table Of Content
When it comes to saving money, certificates of deposit (CDs) can be a great option for individuals who are looking to earn a fixed rate of interest while keeping their funds safe. However, with so many banks and financial institutions offering CDs, it can be challenging to determine which option is the best fit for you.
In this article, we'll compare two popular banks, Synchrony Bank and Discover, and take a closer look at their CD rates, early withdrawal fees, and terms. Here's a general CD comparison:
Synchrony Bank CDs | Discover Bank CDs | |
|---|---|---|
CD Range | Up to 4.25% | 2.00% – 4.00% |
Minimum Deposit | $0 | $2,500 |
Early Withdrawal penalty | 90 – 365 days of interest | 3 – 24 months of interest |
Terms | 3 months – 5 year | 3 – 120 months |
Synchrony vs. Discover CD Rates: Which Is Best?
The table compares the CD rates offered by Discover and Synchrony Bank for various terms.
Both institutions offer the same APY for most terms, while in a couple of specific terms – Synchrony offers a slightly higher rate than Discover.
CD Term | Synchrony APY | Discover Bank APY |
|---|---|---|
3 Months | 0.25% | 2.00% |
6 Months | 3.70% | 3.70% |
9 Months | 4.00% | 3.80% |
12 Months | 4.00% | 4.00% |
18 Months | 3.80% | 3.80% |
24 Months | 3.50% | 3.50% |
30 Months | N/A | 3.40% |
36 Months | 3.75% | 3.40% |
48 Months | 3.50% | 3.40% |
60 Months | 4.00% | 3.40% |
120 Months | N/A | 3.40% |
Only Synchrony Bank Offers No Penalty CD
When it comes to no penalty CD, there is a clear winner. Actually, Discover doesn't offer a no-penalty CD at all.
That being said, Synchrony still offers a competitive rate on no-penalty CD, which can be a great option if there is any chance you'll need money before maturity.
Synchrony Bank | Discover Bank | |
|---|---|---|
11 Months | 0.25% | N/A |
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Which Is Better If You Need An Early Withdrawal?
The early withdrawal penalty is designed to compensate the institution for the loss of interest and administrative costs associated with the early withdrawal, and vary depending on the institution and the length of time remaining until the maturity date.
The penalties for the different terms are almost the same for both banks, as shown in the table below, and there is no clear winner. However, for the very long terms, Discover is a better option with slightly lower penalties compared to Synchrony.
CD Term | Synchrony Bank | Discover Bank |
|---|---|---|
3 Months | 90 days of interest | 3 months of interest |
6 Months | 90 days of interest | 3 months of interest |
9 Months | 90 days of interest | 3 months of interest |
12 Months | 90 days of interest | 6 months of interest |
18 Months | 180 days of interest | 6 months of interest |
24 Months | 180 days of interest | 6 months of interest |
30 Months | N/A | 6 months of interest |
36 Months | 180 days of interest | 6 months of interest |
48 Months | 365 days of interest | 6 months of interest |
60 Months | 365 days of interest | 18 months of interest |
120 Months | N/A | 24 months of interest |
Do Synchrony And Discover Offer Alternatives to CDs?
A savings account typically offers easier access to funds with no penalty for early withdrawal, so it can be a good alternative to CDs. However, the interest rates for savings accounts are typically lower than CD rates, especially for longer-term CDs.
Synchrony High Yield Savings | Discover Online Savings | |
|---|---|---|
Savings Rate | 4.10% | 3.75% |
Minimum Deposit | $0 | $0 |
Fees | $0 | $0 |
Promotion | None | $150 – $200
Minimum deposit of $15,000 / $25,000, expired on 09/12/2024
|
The Synchrony High Yield Savings account offers several features for savers including high rates, no minimum balance requirements, free ATM access, no maintenance fees, multiple withdrawal methods, and a savings goal calculator.
The account provides a high-yield interest rate. Additionally, the account has no minimum balance requirements and no maintenance fees, making it accessible and cost-effective for savers.
On the other hand, Discover Bank online savings account offers competitive high rates over 5 times the national savings rate, with no minimum balance or initial deposit requirements, and no monthly maintenance fees.
The account also has minimal fees and provides access to 24/7 customer support. Discover Bank mobile app allows for easy account management and the account also offers automatic saver options for regular transfers from your Discover checking account.
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The Smart Investor CDs Comparison Methodology
In our comprehensive certificate of deposit (CD) comparison, The Smart Investor team meticulously evaluated various CDs across four key categories to assist you in selecting the most suitable option for your savings goals.
- CD Rates: We thoroughly examined the interest rates offered by each CD, considering their competitiveness in the market. Higher rates typically translate to greater returns on your investment over the CD's term. Additionally, we scrutinized any special promotional rates or conditions that might affect the overall value of the CD.
- CD Features: This category focuses on the unique features and terms associated with each CD. We assessed factors such as minimum deposit requirements, early withdrawal penalties, and the availability of flexible terms. Additionally, we considered any additional perks like interest compounding frequency or options for automatic renewal.
- Customer Experience: A positive customer experience is crucial in banking, and we evaluated each institution's performance in this regard. We looked into aspects such as the ease of opening a CD, the quality of customer service, and the availability of support channels. Reviews from reputable sources such as Trustpilot and JD Power rankings were also considered to gauge overall user satisfaction.
- Bank Reputation: The reputation of the bank is a significant factor in the decision-making process. We examined the bank's financial stability, regulatory compliance, and public perception to assess its overall trustworthiness and reliability as a CD provider.
Compare Synchrony CDs
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Compare Discover Certificate Of Deposit (CDs)
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