Synchrony Bank has been around online for a long time, and they have consistently offered great yields on their savings products.
Unlike other banks, they are not full service. They don't offer checking or loan products. They also don't have any physical branches.
See how Synchrony compares to the best savings accounts out there right now, and see what we think in our Synchrony Bank review below.
- Consistently near the top for high yield savings accounts
- Solid Certificate of Deposits
- Not a full service bank (no checking or loan products)
Synchrony Bank Details
High Yield Savings
Savings and CDs
Who Is Synchrony Bank?
Synchrony Bank is an online bank that offers several high-yield savings products. They are an online bank and do not offer services through branches. Synchrony Bank is not a full-service bank as it only offers savings products, which means no checking accounts or loans.
Synchrony Bank is associated with Synchrony Financial, which provides credit cards.
What Do They Offer?
Synchrony Bank offers five different savings products.
You can choose from a wide range of CDs with durations starting at 3 months going up to 60 months. APYs start at 0.75% and go up to 3.10%. The minimum deposit for a CD is $2,000.
Money Market Accounts
Money market accounts earn a low APY no matter the balance. There is no minimum to open an account. You do have check-writing capabilities with a money market account and can use an ATM card as well. You can make up to six transfers per month. ATM use does not count as a transfer.
High-yield savings accounts earn near the top of the pack regardless of the balance. There is no minimum to open.
Just like a money market account, you can do up to six transfers in a month. If you go over this amount, there is no fee but the bank can close your account.
You also get an ATM card. Money can be deposited through the bank’s mobile app as well.
Synchrony Bank IRA CDs are similar to their regular CDs. Terms go from 3 months to 60 months with APYs ranging from 0.75% to 3.10%. There is also a minimum $2,000 deposit to open an account.
You can transfer your current IRA to Synchrony Bank or even roll over funds from specific employer-sponsored retirement plans. Synchrony Bank encourages you to speak with an IRA specialist at 1-866-226-5638 if you have questions.
Because the CD is an IRA account, there are a few more restrictions. For a traditional retirement plan, the following apply:
- Contributions may be tax-deductible.
- Earnings grow tax-deferred. You generally pay taxes when you make withdrawals.
- You must be under 70 1/2 to contribute to a traditional IRA.
- You must begin taking required minimum distributions (RMDs) at age 70 1/2.
For a Roth, it has the following:
- Contributions may be withdrawn at any time without taxes or penalties.
- Earnings may be withdrawn tax-free and penalty-free if your funds remain in the Roth IRA for five years and you have reached the age of 59 1/2.
- You can contribute to a Roth IRA at any age.
- Roth IRAs have no required minimum distribution (RMDs) during your lifetime.
IRA Money Market Accounts
IRA money market accounts are similar to IRA CDs with a few differences:
- Funds are not locked up for a specific duration like a CD.
- The earned APY is lower.
- No minimum is required to open an account.
The same traditional and Roth retirement restrictions mentioned for IRA CDs also apply to IRA money market accounts. Just like you can with IRA CDs, you can move money from an IRA at another institution or employer-sponsored plan.
Synchrony does have a mobile app. It has a 4.9 rating out of 5 with 81 customer reviews on the iTunes App Store.
Synchrony Bank Perks are available to Silver tier ($10,000+ balance) customers and offer travel and leisure discounts.
Are There Any Fees?
There are no fees to open any savings account, and there are no monthly fees.
There are penalties for early principal withdrawals from CDs. From Synchrony Bank’s website, the penalties are as follows:
- “Terms of 12 months or less[:] 90 days of simple interest at the current rate.”
- “Terms of more than 12 months but less than 48 months[:] 180 days of simple interest at the current rate.”
- “Terms of 48 months or more[:] 365 days of simple interest at the current rate.”
Earned interest can be withdrawn without penalty.
ATM use is free for high-yield savings and money market accounts at ATMs displaying the Plus or Accel logos. While Synchrony Bank doesn’t charge ATM fees, the ATM owner/operator may charge a fee. Synchrony Bank will refund ATM fees up to $5 per statement cycle.
How Do I Open an Account?
You can open an account at https://www.synchronybank.com.
Is My Money Safe?
Yes. Synchrony Bank is FDIC-insured and uses bank-grade encryption for its website and mobile app. Synchrony Bank also has complimentary identity theft resolution services.
Is It Worth It?
Synchrony Bank Review
- Interest Rates - 90
- Fees and Charges - 80
- Customer Service - 80
- Ease of Use - 70
- Tools and Resources - 60
- Products and Services - 60
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
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