Synchrony CD Rates Today: Your Guide to Smart Savings (2024)

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Synchrony Bank pays some of the best CD rates for people who don't have much money to open an account. It's also a good choice for people who want to work with a well-known bank, or who want to open multiple types of CDs.

Synchrony Bank CDs

Synchrony has three types of CDs: standard CDs, a bump-up CD, and a no-penalty CD. Learn more about the similarities and differences of each account below.

Synchrony Bank CD Rates Today

Here are Synchrony's current CD rates:

Synchrony Standard CD Rates

Besides the bank's 3-month CD, Synchrony pays high rates on most standard CD terms. You might find some banks with higher rates for specific terms, but compared to most brick-and-mortar banks or popular online banks, Synchrony rates still stand out. The bank also has more terms to choose from than most other banks.

Synchrony No-Penalty CD Rates

The Synchrony No-Penalty CD has an 11-month term. It pays 0.25% APY. Other online banks might have higher minimum opening deposit requirements but also more competitive rates.

Synchrony Bump-Up CD Rates

The Synchrony Bump-Up CD has a 2-year term and pays 3.60% APY. With a bump-up CD, you can request a rate increase once during the term if Synchrony increases its rate on the CD.

It's worth noting that Synchrony's regular 2-year CD pays a higher rate right now. If you want a more straightforward CD, the regular 2-year term may be more suitable.

Synchrony CD Pros and Cons

What Impacts Your Synchrony CD Earnings?

The amount of interest you'll earn on a Synchrony CD will depend on current CD rates, the term you choose, and how much money you deposit.

You might notice that Synchrony CD rates frequently go up and down over time. That's because they're impacted by economic conditions. We'll explain more about that below.

Market and Economic Conditions

CDs pay a fixed interest rate during the term. That said, the interest rate can still fluctuate, so when your account matures, the term may have a different rate. CD rates are impacted by the Federal Reserve's decisions. Generally, when the Federal Reserve raises rates, Synchrony CD rates rise. When the Fed cuts rates, Synchrony CD rates drop. You can keep track of what will happen at the next Fed meeting to see if savings rates will change in the future.

CD Term Lengths

The terms you choose will also impact the amount of interest you'll earn. Right now, short-term CD rates have higher interest rates than long-term CD rates. With the exception of the bank's 3-month CD, Synchrony follows this larger trend.

Keep in mind that while short-term CDs offer a higher interest rate right now, there are still other reasons why you might prefer a long-term CD. For example, longer-term CDs allow you to earn a fixed interest rate for longer. If you don't need access to money for a couple of years, a long-term CD might actually be beneficial because you'll be able to earn more interest in the long run. Experts also recommend choosing a CD based on your goals.

Minimum Opening Deposit

The amount of money you'll deposit in a CD also impacts your interest earnings. If you deposit more money, you'll be able to earn more interest.

Overview of Synchrony's Three Types of CDs

The bank's regular CDs are its Synchrony CDs. These accounts are just like what you'd find at any other bank. They have fixed interest rates and early withdrawal penalties if you withdraw money before your account matures.

Synchrony offers more standard CD terms than other banks. For example, you can find 3-month, 13-month, and 14-month terms at the bank.

The online bank also has specialty CDs you won't find at every bank: a bump-up CD and a no-penalty CD.

Bump-up CDs let you request a rate increase if rates rise while your account is open. No-penalty CDs will allow you to make a penalty-free withdrawal while your account is open.

Online Banking Experience

Synchrony is an online-only financial institution. You won't be able to go to a branch, although customer support is available online or by phone. Ultimately, if you prefer a traditional banking experience, consider other options. But if you're open to having an online-only account, Synchrony is a strong choice.

Low Minimum Opening Deposit

You can open any Synchrony CD with a $0 opening deposit. This is one of the reasons Synchrony stands out because not many banks have such lenient opening requirements. Generally, banks require at least $1,000 to open a CD.

Standard Early Withdrawal Penalties

Synchrony CDs and Synchrony's Bump-Up CD have early withdrawal penalties. You'll only have to pay a penalty if you take out money before your CD matures. If you keep money in the CD for the entire term, you won't have to pay any fees.

Here are Synchrony's early withdrawal penalties:

• 90 days interest penalty for a term of 12 months or less
• 180 days interest penalty for a term over 12 months but under 48 months
• 365 days interest for a term of 48 months or more

Synchrony's early withdrawal penalties are pretty standard when compared to other banks. You might find some with more lenient penalties or ones with more costly charges.

Synchrony Bank CD Rate Comparison

Synchrony CD Rates vs. Ally CD Rates

Synchrony and Ally CDs are very similar. Both banks have $0 minimum deposits, and both offer three types of CDs.

For regular high-yield CDs, Synchrony pays 0.25% to 5.15% APY, and Ally pays 3.00% to 4.85% APY. The better rate will depend on which term you choose. It's worth noting that Synchrony has more term options than Ally, such as 15-, 16-, and 19-month CDs.

Both banks have an 11-month no-penalty CD; Synchrony pays 0.25% APY, and Ally pays 4.00% APY.

Synchrony has a bump-up CD — Ally offers something similar, but the bank calls it a Raise Your Rate CD. They work the same way: If the bank increases its rate on that type of CD during your term, you can request that your rate go up, too.

There are a couple of differences, though. Both banks have 2-year terms that let you request an increase once. But Ally also has a 4-year term that allows two increases. Synchrony pays 3.60% APY, while Ally pays 3.75% APY on both the 2-year and 4-year Raise Your Rate CDs.

Ally Bank Review

Synchrony CD Rates vs. American Express CD Rates

American Express CDs are another good option if you don't have much money to open an account, because like Synchrony, American Express National Bank (Member FDIC) has a $0 minimum deposit.

American Express National Bank's offerings are much more limited, though. It only has regular CDs, with no special options like no-penalty or bump-up CDs. It also has fewer terms. American Express National Bank pays 3.00% to 4.50% as of 5/10/24 APY (Annual Percentage Yield), so you'll earn higher rates with Synchrony.

American Express Bank Review

Should You Invest in Synchrony CDs?

Synchrony Bank is an excellent option overall for CDs. It has the best CD rates for no opening deposit. We've also ranked it as one of the best banks in America because of its high-yield savings account.

Consider other banks if you aren't comfortable with using an online bank. Synchrony also has unique CDs that are worth exploring, although you can find higher no-penalty CD rates at other online financial institutions.

Why You Should Trust Us: How We Reviewed Synchrony Bank CDs

To review Synchrony Bank CDs, we used our certificate of deposit methodology. We rate each account on a scale from 0 to 5.

For regular CDs, we looked at ethics, the mobile app, customer support, interest rates, minimum deposits, term variety, and early withdrawal penalties.

We removed the term variety category when calculating our ratings for no-penalty and bump-up CDs, because it's common for banks to only offer one term for these types of CDs. We also removed the early withdrawal penalty category when rating the no-penalty CD.

Synchrony Bank CD Rates FAQs