Banking » Compare Banks » CD Rates Full Comparison: Synchrony vs. Discover
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CD Rates Full Comparison: Synchrony vs. Discover

Synchrony Bank offers better CD rates than Discover for most terms. Compare CD rates, minimum deposit, and early withdrawal fees.
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
Interest Rates Last Update: September 20, 2023
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
Interest Rates Last Update: November 1, 2023

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

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
2.25% – 5.50%
2.00% – 5.20%
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
2.25%
2.00%
6 Months
5.25%
3.40%
9 Months
5.50%
3.50%
12 Months
5.30%
5.20%
18 Months
5.25%
5.00%
24 Months
4.40%
4.40%
30 Months
N/A
4.30%
36 Months
4.30%
4.30%
48 Months
4.00%
4.00%
60 Months
4.00%
4.00%
120 Months
N/A
4.00%

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
4.50%
N/A

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
4.75%
4.35%
Minimum Deposit
$0
$0
Fees
$0
$0
Promotion
None
$150 – $200 Minimum deposit of $15,000 / $25,000, expired on 09/15/2023

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.

Compare CD Rates

Lorraine Smithills

Lorraine Smithills

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.