Synchrony is an online-only bank that offers competitive money market, savings and certificate of deposit accounts. We like that it offers a range of specialty CDs and terms, but it doesn’t offer a checking account to keep all your money in one place.
Like other online banks, Synchrony is able to save money on the overhead costs of running a physical branch, and it passes some of its savings down to customers in the form of higher interest rates on savings and CD accounts.
Here’s a breakdown of Synchrony’s CD offerings and how they stack up to the competition.
Synchrony’s CD rates
Synchrony’s high-yield CDs earn a fixed interest rate for the term, so you don’t have to worry about rates dropping and impacting your interest earnings. Most of Synchrony’s CDs have an early withdrawal penalty you’ll pay if you need to withdraw money before your CD term ends — like most banks. After your CD term expires, you can access your money and interest without incurring a fee.
As for Synchrony’s CD rates, you can get APYs as high as 5.05% right now. But the rate varies depending on the term you choose. Terms range from three months to five years.
Here are Synchrony’s current CD terms and rates:
| CD term | APY |
| 3 months | 2.25% |
| 6 months | 4.75% |
| 9 months | 5.05% |
| 12 months | 4.80% |
| 13 months | 4.50% |
| 14 months | 4.50% |
| 15 months | 4.50% |
| 16 months | 4.80% |
| 18 months | 5.00% |
| 19 months | 4.50% |
| 24 months | 4.30% |
| 36 months | 4.30% |
| 48 months | 4.00% |
| 60 months | 4.00% |
Synchrony’s specialty CDs
Synchrony also offers two CDs that function a bit differently from traditional CDs: A a one-time bump-up CD and no-penalty CD.
This bank’s bump-up CD lets you raise your APY one time during your CD term — so if rates rise after you fund your CD, you can request an APY adjustment. In a rising rate environment, bump-up CDs are more attractive, though they generally have lower interest rates than high-yield CDs. However, once rates begin holding steady or dropping, like we’re beginning to see today, a bump-up CD isn’t usually the best option, since you’ll be unlikely to take advantage of the rate bump and can often lock in a higher CD rate with a traditional CD type.
Synchrony’s other specialty CD, its no-penalty CD, is a good fit if you’re worried about accessing your money during your CD term. This CD has an 11-month term that doesn’t require a minimum deposit. But if it’s flexibility you’re worried about, Synchrony’s high-yield savings account, which earns 4.50% APY, may be a better fit. It’s currently one of the most competitive rates available.
Here’s where Synchrony’s bump-up and no-penalty CD rates currently stand.
| Term | APY | |
| Bump-up CD | 24 months | 4.00% |
| No-penalty CD | 11 months | 4.25% |
How much you can earn with Synchrony’s CDs
Right now, Synchrony’s longest term offers a 4.00% APY for a five-year term. Interest compounds daily, offering you a little more money than CDs that compound monthly or yearly. That places Synchrony in the upper tier of the competition when it comes to CD rates.
Here’s how much you’ll earn from the following terms if you deposit $1,000:
| CD term | APY | Earnings on $1,000 deposit |
| 3-month | 2.25% | $5.58 |
| 1-year | 4.80% | $48.00 |
| 3-year | 4.30% | $134.63 |
| 5-year | 4.00% | $216.65 |
Early withdrawal penalties for Synchrony
Like other banks, Synchrony charges a fee for withdrawing money from your CD before it reaches maturity — the final day of the CD’s term. The fee will be applied to the amount of money you withdraw, meaning how much you pay will depend on how much you take out and your current interest rate.
| Term | Penalty |
| One year or less | 90 days of simple interest |
| More than one year but less than four years | 180 days of simple interest |
| Four years or more | 365 days of simple interest |
How Synchrony CD rates compare with other banks
Synchrony has above-average CD rates right now, offering a max of 5.05% APY on a nine-month CD.
While big banks with physical branches have been increasing some of their CD rates, they’re still much lower than the earning potential you’ll find at Synchrony and other online-only banks.
Many other online banks offer CDs with APYs on par with Synchrony — including Ally and Barclays. Here’s how Synchrony stacks up when comparing five-year CDs.
CD rates, compared
| Bank | Five-year CD APY | Interest earned with $1,000 deposit |
| Synchrony | 4.00% | $216.65 |
| Ally | 4.10% | $222.51 |
| Barclays | 4.50% | $246.18 |
| Chase | 1.50% | $77.28 |
What to consider before opening a CD with Synchrony
If you’re thinking about opening a new CD with Synchrony, make sure you think about these questions before setting up a new account.
1. How long are you comfortable locking your cash away?
You’ll want to consider when you’ll need your money before investing in a CD. For example, if you’re confident you won’t need the money for at least nine months, Synchrony’s nine-month CD currently offers 5.05% APY — a better rate than any of this bank’s other CDs. However, you can still earn a good return by locking in a long-term CD with Synchrony. If you think you might need to withdraw funds during the CD term, consider the no-penalty CD or a high-yield savings account instead.
2. Would a Synchrony savings account be a better fit than a CD?
With a 4.50% APY, the bank’s high-yield savings account offers a competitive rate without the worry of an early withdrawal penalty. In fact, its savings account beats the bank’s no-penalty CD rate. But, there’s a key difference: Your savings account rate will fluctuate with market conditions, while you can lock in a CD rate for the full term.
3. How much are you planning to deposit?
While Synchrony’s zero-dollar minimum deposit requirement is appealing, CD investing is only successful if you can contribute a sizable amount of money. Some of the best CD rates have minimum balance requirements. If you can meet them, you might earn just a bit more than you will at Synchrony. For example, Alliant Credit Union requires a $1,000 deposit, and its one-year CD offers a higher APY of 5.00%, compared with Synchrony’s 4.80% APY, but no minimum deposit is required. If you need more time to save for a minimum deposit, a high-yield savings account might be a good alternative.
How to open a CD with Synchrony Bank
Opening a CD with Synchrony is fairly simple. Here’s what you’ll need to do: If you’re already a customer, you can log in to get started. If not, you’ll need to create an account online. Here’s what to expect:
- Fill out an online application: You’ll need your Social Security number and other personal identification information — including your phone number, email address and physical address. You’ll also need to share your current employment.
- Select the account type you’re looking for: You’ll also be able to see the current CD rates for terms you’re interested in before opening an account.
- Review the fine print: Make sure you read the details of potential withdrawal penalties, options for transferring your interest and other terms and conditions of your CD.
- Transfer money into the account: The easiest option for funding your CD is arranging an ACH transfer from your checking account. You can, however, also snap a photo of a physical check and deposit it via the bank’s mobile app, or you can mail a check to the bank’s PO box address in Atlanta.
FAQs
A certificate of deposit, or CD, is a type of savings account that pays you fixed interest when you deposit money for a set period of time. A CD’s term could be as short as one to three months and typically goes up to five years, though there are a few longer-term CDs out there.
The interest you’ll earn with a CD is listed as your annual percentage yield, which measures how much compound interest your money will earn over the course of the year. (Interest on CDs is usually compounded daily or monthly.) You’ll earn interest on not only the money you deposited into the CD (the principal), and on any interest that accumulates.
Most banks charge early withdrawal penalties, but the amount depends on the bank. Many banks, like Synchrony, will calculate a penalty as a number of days’ simple interest at the current interest rate. That will be deducted when you withdraw money from the CD. The amount you pay depends on the CD term. Other banks may simply deduct from the interest you’ve earned, deducting anywhere from 90 days to one year of interest.
A CD is a more stable investment that offers guaranteed growth. It’s a good savings option if you don’t need to touch your money right away, and you want to earn a guaranteed interest rate. If you won’t need the money for a while, you might also consider an I bond — a secure government-backed investment that lets you withdraw your money penalty-free after five years (although you can leave your money in there for up to 30 years).
If you want to access your money at will and don’t mind earning slightly less interest, a high-yield savings account may make more sense. With a high-yield savings account, you can earn a higher-than-average interest rate — though not as high as some CDs — but have easier access to your savings.
The editorial content on this page is based solely on objective, independent assessments by our writers and isn’t influenced by advertising or partnerships. It hasn’t been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
Dashia is a staff writer for CNET Money who covers all angles of personal finance, including credit cards and banking. From reviews to news coverage, she aims to help readers make more informed decisions about their money. Dashia was previously a staff writer at NextAdvisor, where she covered credit cards, taxes, banking B2B payments. She has also written about safety, home automation, technology and fintech.
Synchrony Bank CD Rates for July 2023 – CNET
Source: Media Star Philippines
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