People who have researched bank accounts know it’s hard to decide which one to choose. When it comes to savings accounts, you can opt for a brick-and-mortar or online account — and within those categories you can find a range of savings account rates, perks and rewards.
To help you make a decision about which savings account you should open, GOBankingRates conducted its annual Best Banks ranking and surveyed data from the 110 largest FDIC banks listed by asset size, excluding investment banks. Synchrony Bank won for the best savings account in the 2018 ranking — for the second year in a row — and it earned its kudos because it had the best offerings in these categories:
- Minimum deposit to open an account
- Monthly maintenance fee
- Annual percentage yield
- Minimum balance to avoid a fee
Why Synchrony Bank Won the Best Savings Account of 2018 Award
Synchrony Bank’s High Yield Savings account offers savers a high interest rate, easy access to your money, easy ways to deposit funds, no minimum balance requirements and no fees — although if you go over the federal maximum allowance of six withdrawals or transfers per statement cycle, the bank can close your account, but this isn’t unique to Synchrony Bank. And all of that comes with FDIC insurance for your account for up to $250,000 In addition, no minimum deposit is required to open an account.
Synchrony’s high-interest savings account is easy to open online. If you think this is the right savings vehicle for your hard-earned money, open an account today. Keep reading to see how Synchrony Bank won even though it doesn’t have the very best savings rates.
Check Out the Competition: 10 Best Savings Accounts of 2018
Synchrony Bank: No Fees, Low Minimums and Competitive Interest Rates
Although another one of the top savings accounts, CIT Bank, beat Synchrony with its APY for the Premier High Yield Savings Account, CIT Bank requires a minimum opening deposit of $100. Synchrony requires only a 1-cent minimum deposit, which makes it available to just about anyone with internet access.
Because minimum opening deposits for savings accounts are common among banks, for the second year in a row, Synchrony’s savings account stood out in GOBankingRates’ Best Banks ranking. Synchrony’s lack of fees and its loyalty program contributed to its status.
The average national savings rate is 0.06% APY, according to the FDIC, which won’t make you rich. Synchrony, however, had a savings rate of 1.30% APY at the time the ranking was conducted, and that has since increased to 1.75% APY as of today, which adds up quickly. For example, on a deposit of $5,000 you’d earn $36 in interest over six months and $146 over 24 months.
Synchrony Bank Rewards Customers
Synchrony Bank goes beyond good rates and low fees to offer customers a loyalty program called Synchrony Bank Perks. When you open a deposit account with Synchrony — like a savings account — it automatically enrolls you in the program. A tiered rewards program enables you to earn the perks based on how long you’ve been with Synchrony Bank and how big your account balance is.
For example, you’ll get Synchrony’s basic perks — like ATM reimbursement and free identity theft resolution services — if you’ve been a customer less than a year and have a balance lower than $10,000. But stay at the bank for five years or more and maintain a balance of more than $250,000 and you’ll get a dedicated customer service number, three free wire transfers per statement cycle, access to webinar series and unlimited ATM reimbursements.
Should You Open a Synchrony Savings Account?
Synchrony Bank might not have the highest savings account rate in the GOBankingRates’ Best Banks of 2018 ranking. It does, however, offer an online savings account with high savings rates — and a host of other features that put it at the top of the savings account list. Always look at the best interest rates, but keep in mind that it’s not only savings interest rates you must consider. Other factors, depending on your situation, should be prioritized. Synchrony’s well-balanced offerings is what’s made it the best savings account two years in a row.
When you’re shopping around for the best bank accounts and want to select the best online savings account, take all things into consideration when you choose. Whatever account you open, make sure it will enable you to easily access and deposit your money while it helps you grow your cash.
The Synchrony High Yield Savings account could be the perfect fit. Bonus: You’ll also earn rewards while your money stacks up.
Up Next: Best Checking Accounts of 2018
Methodology: To compile its list of the top 110 banks, GOBankingRates surveyed the FDIC’s list of banks sorted by asset size, excluding non-active institutions, investment banks and any institutions that require customers to use investment services to access commercial bank accounts. This list of 110 banks includes 82 brick-and-mortar banks and 28 online-only banks according to the GOBankingRates database. For brick-and-mortar financial institutions, the asset threshold was a minimum of $10 billion. No asset threshold was consulted for online-only banks.
Criteria for ranking: To determine its Best Savings Accounts category ranking, GOBankingRates scored each bank’s basic, personal savings account from most to least favorable on the following factors: (1) minimum deposit to open the savings account, (2) monthly maintenance fee, (3) minimum balance to avoid a fee and (4) annual percentage yield. APY was weighted more heavily than other ranking factors, and accounts were then ranked by overall score.
Data for the Best Banks of 2018 was compiled from and verified against the individual institutions’ websites between Sept. 12 and Sept. 21, 2017. Rates, terms and conditions are subject to change at the discretion of the individual financial institutions. APY was based on the minimum deposit required to open the account. Some interest rates might be short-term or promotional offers only, and it is possible additional terms and conditions must be met in order to obtain the interest rates listed. Rates and availability might vary by region. Please verify terms and conditions before opening an account.
GOBankingRates is a personal finance and consumer interest rate website owned by ConsumerTrack, Inc., an online marketing company serving top-tier banks, credit unions, and other financial services organizations. Some banks mentioned in the Best Banks of 2018 are clients of ConsumerTrack, Inc., which serves more than 100 national, local and online financial institutions. Rankings are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement.