This account offers competitive interest rates at 2.25% APY, and requires no minimum daily balance or minimum opening deposit. Synchrony Bank offers several security measures, including 128-bit high-encryption browsers, 24/7 security monitoring, multi-factor authentication to verify customer identity and complimentary identity theft resolution services from CyberScout. Here are Synchrony's current CD terms and rates: Note: The CD rates provided were collected from the issuing organizations' websites and are valid as of Dec. 19, 2022. 4.65% APY. Daily compounding. How much should you contribute to your 401(k)? The Synchrony Bank money market account (like the high-yield savings account) also offers an optional ATM card to access your cash. This account has a 2.25% APY that compounds daily and no maintenance fee. What are index funds and how do they work? The app supports an array of features that make banking easier, including: Overall, the app is one of the nicer banking apps weve tried, and it adds a lot to the experience of banking with Synchrony. Video Transcript: When you save money, you probably think of it as adding up with each deposit, a little bit at a time. It also allows you to withdraw your money at any time after six days of funding the account. Synchrony Bank's CDs with durations of three months to nine months pay slightly less than Synchrony Bank's high-yield savings account, while CDs of 12 months or longer duration pay 2.25% to 5.00%. This site may be compensated through the bank advertiser Affiliate Program. This site may be compensated through the bank advertiser Affiliate Program. Synchrony customers have a 10-day grace period to choose other options, like adding or withdrawing funds, changing your CD term or closing your CD account. There are different types of compound interest savings accounts available if you are interested in savings accounts that will accrue interest on your principal. Five years later, you would have earned . If you're worried about having to access your money earlier, Synchrony's no-penalty CD might be a good fit. Learn more: Looking for a safe place to stash your cash? Kevin lives in Cleveland, Ohio with his wife and four kids. With the fee subtracted, instead of receiving $1,000, you'll receive $989.40. You can withdraw up to $1,000 per day from an ATM, making it easy to get access to large sums of cash when you need it. Note that the 11-month CD is a no-penalty CD that allows you to make penalty-free withdrawals after the first six days. APYs are subject to change at any time without notice. Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. Its possible to get a CD that isnt a jumbo CD that has both a lower minimum balance and higher APY. In other cases, you may be able to hunt for a high-yield savings account, but note that the yield is subject to change, unlike a CDs yield. Essentially, your interest starts earning interest of its own. While Synchrony's zero-dollar minimum deposit requirement is appealing, CD investing is only successful if you can contribute a sizable amount of money. Compare APY rates to other online savings accounts: Savings accounts are supposed to be a safe place to store your money. Connect with Matthew Goldberg on LinkedIn, Get in contact with Matthew Goldberg via Email, Professor of finance, Creighton University. Sticking with Synchrony Bank can pay off if youre looking for a long-term banking relationship. Synchrony also offers two CDs that function a bit differently: A no-penalty CD and a one-time bump-up CD. Save smarter,Synchrony Bank offers competitive APY rates on high-yield savings accounts, certificates of deposit (CDs) and money market accounts. The High Yield Savings account goes a long way toward making up for the lack of checking with Synchrony Bank. "mainEntity": [{ And that's how compound interest worksfor you. Synchrony Bank offers its IRA money market accounts and IRA CDs for both traditional and Roth IRAs. 1 - 6 of 40 Years to save Initial deposit $ Calculate Bottom line Synchrony Bank's online options make banking easy. If you leave your money in that account for one year, you'll have $1,020 at year's end (your original balance of $1,000, plus $1,000 x .02). The biggest risk to a jumbo CD is if you put a large amount of money into it for a long period of time and that money is not keeping up with inflation. Live chat with Synchrony support. However, if you want to invest your retirement savings in a wider range of potentially higher-risk/higher-reward assets, like stocks and bonds, Synchrony Banks IRAs do not offer those options. You can deposit money into your Synchrony Bank account in a few different ways: Ben Gran is a freelance writer who covers personal finance and financial services. The interest you'll earn with a CD is listed as your annual percentage yield, which measures how much compound interest your money will earn over the course of the year (interest on CDs usually compounded daily or monthly). Performance information may have changed since the time of publication. At Bankrate, we take the accuracy of our content seriously. Online-only banks typically offer competitive CD yields because they have no branches to maintain. The example: 1. Even a minor $1 or $5 per month fee can completely erase any interest you earn. Now that youve seen how compound interest can speed up your savings, learn about its effect on loans of all types. Editorial Note: We earn a commission from partner links on Forbes Advisor. At Bankrate we strive to help you make smarter financial decisions. The content that we create is free and independently-sourced, devoid of any paid-for promotion. },{ If you don't find Marcos behind his computer screen, you'll probably find him behind another screen, playing the newest Nintendo Switch title, streaming the latest TV show or reading a book on his Kindle. If you dont know when you may need to access your savings, the Synchrony Bank money market account gives you the ability to write checks, while earning a higher APY than a typical bank savings account or checking account. Those looking to grow their money even more may be less enthusiastic about the safe and stable gains from CDs. "@type": "Question", Merchant locations where you can find an ATM include restaurants, convenience stores and drugstores. However, Synchrony Bank also doesnt offer many other banking services such as checking accounts, mortgages, or car loans. A good interest rate can be the difference between losing money to inflation and growing your savings. "name": "Are jumbo CDs safe? Weve maintained this reputation for over four decades by demystifying the financial decision-making Savvy shoppers look around for the best rate, even if it means going with another bank." The APY rates on Synchrony Banks IRA account offerings are the same as their other money market accounts (1.75% APY) and CDs (4.01% APY for a 12-month term with no minimum deposit). It only offers credit cards and savings products, including savings accounts and CDs, but not checking accounts. (Rewards tier status can be achieved with either the balance level or tenure -- both are not required.). Its also because savings accounts and other financial instruments pay interest on the amount youve put away. "acceptedAnswer": { With the tagline, Aim higher. Read the complete Terms and Conditions. You might be using an unsupported or outdated browser. These will be subject to the federal limit of six transactions (waived during the coronavirus outbreak under Regulation D). It also doesnt offer a checking account option though you can write checks from the money market account. The federal government protects your money up to $250,000 per depositor, for each account ownership category, in the event of bank failure. Just make sure to follow smart credit card practices. If you have a one percent APY, for instance, then you earn one dollar on every hundred dollars you keep in that account, each year. Perhaps you run into a medical emergency or an unexpected expense on your car. Synchrony Bank increased the rate of its 14-month CD to 5.00% APY. Synchrony has above-average CD rates right now, offering a max of 4.50% APY on a 15-month CD. process and giving people confidence in which actions to take next. Synchrony Bank CDs come with no minimum deposit requirement. Weve put together pros and cons about Synchrony Bank so you can decide if its the right bank for you. The Synchrony Bank Money Market Account (MMA) offers 2.25% APY with no minimum balance. Other bank accounts exist that offer competitive rates while keeping your funds more accessible. You can also make withdrawals at the bank's one physical branch in Bridgewater, New Jersey. The bank's ATM network gives customers access to thousands of machines displaying the Visa Plus and Accel logos, both in the U.S. and abroad. If you ever need assistance with your account, you can contact Synchrony Bank 24 hours a day, 7 days a week, 365 days a year. For example, if you have $10,000 in a 12-month CD at 4.30% APY, and withdraw all of it, you'd pay a penalty of $106. Source: Compound Interest Calculator, NerdWallet.com, 2019. Offers apply to personal accounts only. There are generally four rates of compounding interest. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. It's one very important way that a small deposit can end upover time, and with a high APYa substantial nest egg. In this analogy, the speed of the snowball is also a factor. When your interest rate changes, it will change the amount you earn per interval. Opinions expressed here are authors alone, not those of the bank advertiser, and have not been reviewed, approved or otherwise endorsed by the bank advertiser. Synchrony Bank's customer service line is available seven days a week by phone or online chat, as well as 24/7 through its app so you can manage your account on-the-go. This may work for some people, but if you prefer to use one of the best checking accounts, youll have to split your money between two banks. Opinions, reviews, analyses & recommendations are the authors alone, and have not been reviewed, endorsed or approved by any of these entities. While online high-yield savings accounts offer some of the highest interest rates, they are also generally harder to access your money than when you bank at a brick-and-mortar institution. Traditional and Roth IRA Money Market accounts, If You Have More Than $1,000 in Your Checking Account, Make These 6 Moves, This 7-Day Savings Challenge Is Going Viral By Making People Richer, The 7 Biggest Money Secrets Most Rich People Wont Tell You, The 6 Best High-Interest Checking Accounts for March 2023, The 18 Best Bank Promotions of March 2023, The 10 Best Checking Accounts for March 2023, Best Boat Loans of 2023: How to Finance a Boat, Chase Bank Review 2023: Checking and Savings Accounts, Ally Bank Review 2023: An Online Bank With a Full Range of Services.