Synchrony Bank Review: Savings, CDs, And Fees

Synchrony Bank is an online-only bank best known for its competitive high-yield savings and certificate of deposit (CD) accounts, plus a money market account with flexible access to your cash. As part of Synchrony Financial, a large consumer financial services company, the bank focuses on simple, interest-earning deposit products rather than full-service checking.

This review walks through Synchrony Bank’s main accounts, interest rates and fees, digital tools, customer experience, and how it stacks up against other popular online banks. It mirrors the key topics typically covered in a bank review so you can quickly decide whether Synchrony is a good fit for your savings goals.

Synchrony Bank at a Glance

Synchrony Bank operates entirely online and offers a small but focused lineup of deposit products with FDIC insurance up to the standard limits for eligible accounts. There are no branch locations, but customers can manage accounts through a website and mobile app.

Best for:

• Savers seeking a simple, high-yield online savings account with no monthly fees
• People comfortable banking without branches
• Customers who want CDs and IRA CDs at competitive rates
• Those who value optional ATM access for a savings or money market account

Not ideal for:

• Anyone needing full-service checking or cash deposits at branches
• People who frequently need in-person customer service
• Customers wanting an all-in-one bank for loans, mortgages, and everyday banking

Synchrony High-Yield Savings Account

The high-yield savings account is Synchrony Bank’s flagship product and typically offers an annual percentage yield (APY) significantly above the national savings average, with no minimum balance requirements and no monthly service fees.

Key Features

• Competitive APY: Synchrony Bank’s high-yield savings rate is generally much higher than the national average savings rate published by the Federal Deposit Insurance Corporation (FDIC).
• No minimum opening deposit: You can usually open the account with any amount, including $0, which makes it accessible for new savers.
• No monthly maintenance fees: There are no recurring monthly account fees, which helps your interest earnings compound without being reduced by charges.
• Interest compounded regularly: Interest is typically compounded daily and credited monthly, aligning with common high-yield savings practices.
• Optional ATM card: Customers can request an ATM card for limited cash access and typically receive a small allowance of ATM fee reimbursements up to a set amount per statement cycle.
• Digital access: Manage the account via online banking and a mobile app, with tools for transfers, balance tracking, and mobile check deposit.

Pros of the High-Yield Savings Account

• High APY with low friction: You get a competitive rate without needing a large balance or qualifying activities like direct deposit.
• Flexible funding options: You can typically fund and access the account via electronic transfers, mobile check deposit, and mailed checks, which suits online banking users.
• FDIC-insured: Funds are protected up to the applicable limits, providing safety alongside yield.
• No monthly fees or balance requirements: This is particularly attractive for savers building emergency funds or sinking funds over time.

Potential Drawbacks

• No checking account pairing: Synchrony doesn’t offer a traditional checking account, so you may need another bank for daily spending.
• Limited ATM functionality: While an ATM card is available, it is not a full debit card solution for everyday purchases and may have withdrawal limits.
• Online-only service: No branch access can be a drawback if you prefer in-person support.

Synchrony Bank Money Market Account

Synchrony’s money market account (MMA) offers a blend of savings and limited transaction features. It typically pays a solid APY, though often lower than the high-yield savings rate, compensating with check-writing and ATM access.

Money Market Features

• No monthly maintenance fee: Like the savings account, the MMA generally does not carry a monthly service fee.
• Low or no minimum balance: Online money market accounts at Synchrony usually have minimal opening requirements, keeping them accessible.
• Check-writing capability: You may be able to write a limited number of checks from the account, useful for larger or occasional payments.
• ATM access: Optional ATM card access provides another path to your funds without transferring to another institution.
• Interest-earning: The account pays interest, often at a higher rate than many traditional brick-and-mortar money market accounts.

Who the Money Market Account Is Best For

• Savers who want more access to funds than a pure savings account provides.
• People who occasionally need to write checks from a savings-type account.
• Those building an emergency fund who want a balance between access and yield.

Synchrony Bank Certificates of Deposit (CDs)

Synchrony Bank offers a range of Certificates of Deposit (CDs) with multiple term lengths and competitive APYs. CDs can be useful if you know you can commit funds for a set period in exchange for a higher, fixed interest rate.

CD Terms and Options

• Variety of terms: Synchrony CDs are available across many maturities, from short-term options of a few months up to multi-year CDs, such as five years.
• Fixed rates: The APY is locked in when you open the CD, protecting you from rate cuts but also limiting upside if market rates rise.
• Minimum opening deposit: Synchrony typically keeps CD minimums low by online CD standards, allowing more people to participate.
• IRA CDs: The bank also provides CDs within individual retirement accounts (IRAs), which can be an option for conservative retirement savers.

CD Early Withdrawal Penalties

As with most banks, early withdrawals from a CD at Synchrony generally trigger a penalty, which is often based on a certain number of days of interest depending on the term. This is standard industry practice and is an important consideration before committing funds.

When Synchrony CDs Make Sense

• You have a medium-term savings goal and won’t need the money until the CD matures.
• You want to lock in today’s rates and avoid volatility.
• You plan to build a CD ladder with multiple terms to balance access and yield.

Other Synchrony Banking Products

Beyond its primary savings, CD, and money market accounts, Synchrony Bank participates in a larger ecosystem of financial products via Synchrony Financial.

Retirement and IRA Products

• IRA high-yield savings: An IRA savings account can offer liquidity for retirement funds while still earning interest.
• IRA CDs: Fixed-rate IRA CDs allow conservative investors to lock in yields in a tax-advantaged retirement account.

Synchrony Credit and Financing (Related, but Separate)

Although separate from its deposit accounts, Synchrony is a major provider of private-label and co-branded credit cards, as well as installment loans and buy now, pay later products for retailers. This side of the business does not directly change the terms on your bank accounts, but it underscores the company’s scale and experience.

• Private label and co-branded credit cards for retailers and service providers.
• Industry-specific cards such as health and automotive networks.
• Installment loans and buy now, pay later options for consumer purchases.

Digital Experience: Website and Mobile App

Since Synchrony Bank is online-only, the digital experience is central to its value. Accounts are managed through a secure website and a mobile app available for major platforms.

Online Banking

• Account management: View balances, track interest earned, and download statements.
• Transfers: Set up one-time or recurring transfers to and from external bank accounts.
• Secure messaging: Communicate with customer service through secure login channels.

Mobile Banking App

• Mobile check deposit: Deposit eligible checks by snapping photos within the app, a standard feature among online banks.
• Balance and activity: Monitor accounts in real time and quickly see recent transactions.
• Biometric login (where supported): Use fingerprint or face recognition for faster access.

Fees and Account Costs

One of Synchrony Bank’s main attractions is its generally low-fee structure on savings and money market accounts.

• No monthly service fees on standard savings and money market accounts.
• No minimum balance to avoid a monthly fee, unlike some traditional banks.
• ATM fee reimbursements: Synchrony typically reimburses certain ATM fees up to a cap per statement cycle when using the savings or money market ATM card, though fees and limits can change over time.
• CD early withdrawal penalties: If you close a CD before maturity, you will incur a penalty, consistent with the CD terms at account opening.

Always review the most up-to-date fee schedule and terms on Synchrony Bank’s official website before opening an account, as these details can change.

Safety, Stability and FDIC Insurance

Synchrony Bank is a division of Synchrony, a large U.S. financial services company with billions in assets and deposits. According to Synchrony’s fact sheet, the company manages over $80 billion in deposits and has a long history of providing consumer financing.

• FDIC insurance: Deposits in eligible Synchrony Bank accounts are insured by the FDIC up to the standard limits per depositor, per insured bank, for each account ownership category.
• Scale and experience: Synchrony has nearly a century of experience in consumer finance and supports millions of customer accounts.
• Regulation: As a U.S. financial institution, Synchrony is subject to banking and consumer protection regulations, adding another layer of oversight.

How Synchrony Bank Compares to Other Online Banks

Synchrony Bank competes with other online-focused institutions that offer high-yield savings and CDs. While specific rates and promotions change frequently, you can evaluate Synchrony against peers using a few key criteria.

Bottom line on comparisons: Synchrony is strongest as a specialized savings and CD bank for people who already have checking elsewhere. If you want a single institution for checking, savings, and more, a competitor with a broader product lineup may be more convenient.

Who Synchrony Bank Is Best For

Synchrony Bank works particularly well for certain types of banking customers.

• Dedicated savers: If your primary goal is to earn a strong return on short- or medium-term savings, Synchrony’s high-yield savings and CDs are appealing.
• Online-first users: People comfortable managing money via mobile and web will appreciate Synchrony’s simple digital tools.
• Rate shoppers: Those comparing APYs across institutions may find Synchrony competitive, especially when paired with low fees.
• Retirement-focused savers: IRA savings and IRA CDs offer options for conservative retirement allocations.

On the other hand, if you want an all-in-one bank with checking, personal loans, and in-person support, you might pair Synchrony with another institution rather than using it as your only bank.

Frequently Asked Questions (FAQs)

Q: Is Synchrony Bank FDIC insured?

A: Yes. Deposits at Synchrony Bank are FDIC insured up to the standard limits per depositor, per ownership category, at the legal entity that holds your account.

Q: Does Synchrony Bank offer checking accounts?

A: No. Synchrony focuses on savings products such as high-yield savings, CDs, IRAs, and money market accounts, but does not currently provide traditional checking accounts.

Q: How do I deposit money into a Synchrony Bank account?

A: You can typically fund your account by linking an external bank for electronic transfers, setting up direct deposit where available, using mobile check deposit through the app, or mailing a physical check.

Q: Are there ATM fees with Synchrony’s savings or money market accounts?

A: Synchrony usually provides an optional ATM card and reimburses certain ATM fees up to a set cap per statement cycle. Exact reimbursement limits and network details may change, so it is important to check the latest terms on Synchrony’s official site.

Q: What happens if I need to withdraw from a Synchrony CD early?

A: Withdrawing funds from a CD before its maturity date normally incurs an early withdrawal penalty, typically calculated as a specified amount of interest based on the CD’s term. The penalty can reduce or even eliminate the interest you earned, so CDs are best for money you can leave untouched until maturity.

Q: Is Synchrony Bank safe for large balances?

A: Synchrony is part of a large U.S. financial company with substantial assets and deposits. As long as your balances stay within FDIC coverage limits per ownership category, your deposits have the same federal insurance protection as at any other FDIC-insured bank.

This article is general information, not personal financial advice. Consider your own situation, or speak with a licensed adviser, before acting on it.