Synchrony Bank Review: High-Yield CD Rates to Help Build Your Savings

Learn more about Synchrony Bank, a top-rated online institution, which offers a number of CD account options.

Synchrony Bank Review

A certificate of deposit is like a fitness program for your money: once it’s been put into a CD, your funds come out stronger and more profitable than ever before. CDs strike that balance between weak-earning savings accounts and expensive investments, providing safety, accessibility and higher yields, with a fixed interest rate guaranteed to accrue dividends over a chosen period of time.

With all the talk of online banking’s advantages, Synchrony Bank CD options are definitely worth looking into, since this top-rated online provider specializes in a very impressive range of CDs, with no fewer than nine different terms to choose from. Check out our Synchrony Bank review of these high-yield CD options and find out which tier is right for you.

Review of Synchrony Bank CDs

The first thing a customer looking to do business with Synchrony Bank will notice is that it’s one of the leaders in the online banking revolution. With just one brick-and-mortar location in Bridgewater, N.J., the institution saves on costs that are passed down to the depositor via higher, more competitive interest rates. In Synchrony’s case, the bank takes its APYs to award-winning levels.

Benefits and CD Rates

Synchrony’s CD rates range from 0.25% to 2.25%; for its 12-month CD, a 1.25% APY is a standout interest rate that was recently recognized as the highest out of all online banks reviewed by GOBankingRates earlier this year. Like with all traditional CDs, open an account, and the interest rate won’t change over the duration of the account’s lifespan, consistently compounding dividends each month of its term.

Synchrony Bank CD: High-Yield Account to Help Grow Savings

Other banks may offer three, or maybe four, CD terms, which can be an inconvenience for depositors who want, but can’t find, shorter-termed CDs offered in increments of a few months apart. Synchrony offers nine, and customers have a choice of five different deposit amount ranges.

APYs are mostly standard according to the corresponding term and deposit amount. Twelve- and 18-month CD holders can receive a 1.25% rate, while longer-term deposits range from 1.45% up to 2.25%. Shorter-term deposits through Synchrony have more APY variation. For instance, a small, 9-month, $5,000 CD locks into a 0.45% rate — but make that a jumbo, and your APY gets bumped up to 0.65%.

Synchrony Bank CD Rates and Terms

TermDeposit Amount
$2,000-$14,999$15,000-$24,999$25,000-$49,999$50,000-$99,999$100,000+
3-month0.25% APY*0.29% APY*0.29% APY*0.29% APY*0.29% APY*
6-month0.41% APY*0.5% APY*0.6% APY*0.6% APY*0.6% APY*
9-month0.45% APY*0.6% APY*0.65% APY*0.65% APY*0.65% APY*
12-month1.25% APY*1.25% APY*1.25% APY*1.25% APY*1.25% APY*
18-month1.25% APY*1.25% APY*1.25% APY*1.25% APY*1.25% APY*
24-month1.45% APY*1.45% APY*1.45% APY*1.45% APY*1.45% APY*
36-month1.5% APY*1.5% APY*1.5% APY*1.5% APY*1.6% APY*
48-month1.7% APY*1.7% APY*1.75% APY*1.75% APY*1.75% APY*
60-month2.2% APY*2.2% APY*2.25% APY*2.25% APY*2.25% APY*
Source: SynchronyBank.com

Learn more: How Often Do CD Rates Change?

Features and Perks of Synchrony Bank CDs

Synchrony Bank offers a safeguard to offer customers peace of mind, particularly those with six-figure jumbo deposits. All Synchrony Bank CDs are backed by the Federal Deposit Insurance Corporation, up to $250,000.

Synchrony is also very mobile-friendly, making banking with them even more convenient. Customers who download the bank’s mobile app can track the progress of their CD earnings, up to date at all times, so you can track your progress and see how much you’re earning.

Synchrony’s virtual presence doesn’t mean that there aren’t real people behind the scenes protecting your investment. Depositors have the choice between managing their funds online, or easy access to one of the bank’s live representatives, 24/7. See where your CD deposit stands at any given point during its term.

Minimum CD Deposit

All Synchrony Bank CDs require a minimum deposit of $2,000. Depending on your budget, this may be a deal breaker for people who don’t have enough money to open an account. For first-time investors, it may also be too large of an investment to make just to test the waters of seeing if a CD is right for you. A $500, or even $1,000, minimum deposit might make Synchrony’s arsenal of accounts more accessible to more consumers.

Though it’s not necessarily a drawback unique to Synchrony Bank, prospective account holders who prefer constant liquidity and access to their money in the bank may want to reconsider opening a CD, since you can’t deposit more funds into the account, or withdraw any without a significant penalty fee. (To avoid this fee and get the most out of your CD, it’s recommended that you keep your funds on deposit for the full term, without any withdrawals.)

The Bottom Line

Synchrony’s awards can’t be overlooked, especially for its CD offerings. Apart from ranking as having one of the best online CD accounts with GOBankingRates, it’s also been acknowledged by Kiplinger’s and Money Magazine as the top-yielding CD.

On one hand, you must take into consideration whether or not the minimum deposit works for you. But when you look at the 45 different terms and deposit tiers offered by Synchrony, each with an interest rate that will build up more dividends than any traditional savings account could, Synchrony Bank CD rates are hard to beat.

Also, the fact that Synchrony breaks down these investment details on its website — combined with its CD calculator — goes to show that this is a bank that finally understands the type of information customers are looking for, without any guesswork or confusion they might experience with other institutions.

Keep reading: 5 Tips for Choosing the Best CD Account

Synchrony Bank is a client of GOBankingRates.

*Annual Percentage Yield (APY). All APYs are accurate as of 09/28/2015.