Synchrony Bank now offers 1.05% APY for its high-yield savings account. This appealing rate can help depositors get ahead on their savings goals.
The interest bump puts Synchrony Bank above other online banks, typically offering rates in the 0.85% to 0.99% range.
How Synchrony Bank’s 1.55% APY Stacks Up
For starters, the 1.05% alone is greater than total interest offered on many brick-and-mortar savings and money market accounts, and well exceeds the national average savings account rate of 0.17% APY.
The 1.05% APY is triple the national average CD rate of 0.51% APY for terms of six months to five years. Depositors would earn three times as much on their money by keeping it in Synchrony Bank’s savings account over the average CD, all while keeping their funds more accessible without worry of early withdrawal penalties.
This interest rate increase makes it simple to estimate your annual yield: simply divide your balance by a hundred, and that’s the amount of interest you’ll be earning on the account. A balance of $5,000, for instance, would grow to $5,077 after twelve months.
Synchrony Bank’s Optimizer+plus High Yield Savings Account Features
Along with the 1.05% APY, Synchrony Bank’s high-yield savings account carries low fees and provides easy access for depositors.
High-Yield Account Offers Low Fees
The savings account does carry a $5 monthly service fee, but depositors can easily avoid this charge, as it’s waived for all balances of $50 or more. The high-yield savings account allows up to six withdrawals each month per federal regulations, with each additional withdrawal carrying a $20 fee.
Easy Access to Deposited Funds
Depositors can also easily access their funds and manage their accounts through Synchrony Bank’s online customer login, which works on computers, tablets and smartphones. Customers can check their balances, transfer money between other online bank accounts or use Synchrony Bank’s Mobile Check Deposit tool to make deposits.
In addition to transferring money from an high-yield savings account online, depositors can obtain an ATM card to withdraw funds, or may make withdrawals and transfers over the phone.
FDIC Insurance and Free ID Theft Monitoring
Synchrony Bank carries FDIC insurance on all deposits, guaranteeing up to $250,000 on its savings accounts.
The bank also offers outstanding identity theft protection. Synchrony uses multifactor identification, 24-hour monitoring and other security measures to protect its customers. It also offers free identity theft assistance from Identity Theft 911 should any of its customers become a victim.
About Synchrony Financial
Synchrony Financial is an online-only bank that spun off of former parent company General Electric to become an independent financial institution in July 2014. In only a short few months, Synchrony Financial has established itself as a leader in online banks, beating Q3 earning forecasts and pushing stocks up 20 percent from when it was first offered for trading, reports The Seattle Times. The bank is helmed by President and CEO Margaret Keane, making Synchrony Financial the most valuable bank in the U.S. led by a woman.
In addition to its high-yield savings account, Synchrony’s offerings include CDs, money market accounts and IRAs. Its lending department also offers a wide ranging of financing options to pay for all of life’s needs, from home improvements to auto repair, healthcare and even gifts and sporting goods.
Photo credit: Ken Teegardin