Synchrony Bank's Certificate of Deposit Rates for May 2025: An Overview
Looking for a financial institution that's got your back? Check out Synchrony Bank, an online powerhouse that offers a variety of services, includingCertificates of Deposit (CDs) with terms ranging from three months to five years. And guess what? Their CD rates can go as high as 4.25%, competing with the crème de la crème of CDs for certain term lengths.[1]
No worries about meeting hefty minimum balance requirements here, as Synchrony Bank's CDs don't impose any such nuisances.[1] Fancy bumping up your savings game? Synchrony Bank offers specialty CD accounts such as the bump-up CD and the no-penalty CD options.[1]
Synchrony CD Overview
Before diving into a new CD, it's wise to shop around and compare offers from various banks to find the best interest rates, account features, balance requirements, and benefits that float your boat.[1]
Synchrony Bank CD: Key Features
Along with competitive annual percentage yields (APYs), especially on long-term CD products, Synchrony Bank CDs feature no minimum balance requirements. However, be aware that an early withdrawal penalty is in place if you try to withdraw some or all of the principal funds before the maturity date. The penalties range from 90 to 365 days' worth of simple interest based on the terms of your account.[2]
It's worth noting that the grace period with Synchrony Bank lasts a mere 10 days after the maturity date. During this period, you can add additional cash to your account, renew your CD, transfer the cash to a different account, or withdraw your money.[2]
If you don't take any action during this 10-day grace period, Synchrony Bank will automatically renew the CD on your behalf and send you a renewal notice.[2]
Tips for Shopping CDs
When you're on the hunt for a new certificate of deposit, it's essential to look beyond the interest rates that a bank offers you. Although earning a high return on your savings matters, it's also important to pay attention to other account features that could affect you.[1]
Pros and Cons of Synchrony Bank CDs
- Pros: Some competitive rates, no minimum balance requirement.[1]
- Cons: Some non-competitive rates, early withdrawal penalties.[1]
About Synchrony Bank
As an online bank, Synchrony Bank offers competitive interest rates on its savings, money market, and CD accounts. The bank also partners with numerous retailers to provide co-branded credit cards tailored to each retailer.[1]
Synchrony Bank provides financing for healthcare procedures and purchases through its CareCredit product. However, it does not offer checking accounts, mortgages, investments, or other products that you may find at other financial institutions.[1]
Alternatives to Synchrony Bank CDs
- High-yield savings accounts: If you're willing to open an online savings account elsewhere, you may earn higher rates than what Synchrony Bank offers.[1]
- High-yield checking accounts: You might find relatively high rates with some checking accounts, but beware of their requirements and limits. The best high-interest checking accounts give you easy access to your money.[1]
- Certificates of deposit (CDs): Synchrony Bank offers competitive rates on its CDs. However, you can also choose from a range of CDs from other financial institutions.[1]
- Money market account: A money market account can provide a return on your savings. Check the best money market account rates to see how it compares.[1]
- Treasury securities: These government-backed bills, notes, and bonds sometimes offer even higher rates than CDs and may be more liquid.[1]
FAQs
Are Synchrony Bank CDs Worth It?
CDs may be worth considering under the following circumstances:
- You prefer a (virtually) risk-free way to grow your savings.
- Keeping your cash locked in a CD for a set period of time isn't an inconvenience.
- The CD rates at Synchrony Bank, combined with its benefits (like no minimum deposit) seem like a good fit for your financial goals.[1]
Are Synchrony Bank CDs FDIC-Insured?
Yes, Synchrony Bank is a member of the Federal Deposit Insurance Corporation (FDIC). Therefore, deposit accounts with the bank (including CDs) are insured up to $250,000 per ownership category.[1]
Should I Get a Synchrony Bank CD?
CD rates at Synchrony Bank are competitive compared to other online banks and credit unions. While the highest rate CD at Synchrony Bank might not be the highest APY available on any CD, the bank does offer higher APYs than many of its competitors for long-term CDs.[1]
If you're looking for a bank that doesn't require a minimum deposit, Synchrony stands out. Furthermore, the financial institution offers a wide range of CD terms and specialty CD products that can give savers added flexibility for low-risk ways to grow your wealth.[1]
- Exploring the world of digital currency, Synchrony Bank has ventured into the finance-tech sphere by offering ico and token services, providing a unique blend of traditional and modern finance.
- If you're a tech-savvy personal-finance enthusiast, you might appreciate the convenience of managing your investments, including CDs and potential token transactions, all in one place through Synchrony Bank's sleek digital platform.
- As technology continues to drive change in the finance sector, entertainment-focused businesses might consider partnering with Synchrony Bank, offering co-branded credit cards and digital investment options to their clientele, elevating their offerings and fostering customer loyalty.
