Synchrony is an online-only bank that offers a range of interest-earning deposit options -- including money market, savings accounts and CDs. We like that it offers a range of specialty CDs and terms to choose from, even though it lacks a checking account to keep all of your money in one place. Without physical branches to manage, Synchrony, like other online banks, saves on overhead costs and passes some of its savings along to account holders in the form of higher interest rates on savings accounts and CDs. What’s more, Synchrony CDs are insured by the FDIC, protecting account holders by up to $250,000 a person.
Here’s a breakdown of Synchrony’s CD offerings and how they compare to the competition.
Synchrony CDs and rates
Synchrony’s traditional CDs earn a set interest rate for the term and charge a penalty for withdrawing early. Some Synchrony CDs offer higher interest rates as high as 4.50% APY, compared with its high-yield savings account, which yields 3.50% APY. While its CD terms of between one year and five years offer higher APYs than its high-yield savings account, account holders can face an early withdrawal penalty for pulling their money out of their CD account before the CD term’s maturity. Penalties range between 90 days’ and one year’s worth of simple interest.
Additionally, the bank offers two alternative types of CDs that allow for greater flexibility. Here are Synchrony’s current CD terms and rates:
Synchrony CDs and rates
| CD term | APY |
| 3 months | 2.25% |
| 6 months | 4.25% |
| 9 months | 4.30% |
| 11 months -- No-penalty CD | 4.10% |
| 12 months | 4.75% |
| 13 months | 4.50% |
| 14 months | 5.15% |
| 15 months | 4.50% |
| 18 months | 5.00% |
| 19 months | 4.50% |
| 24 months | 4.30% |
| 24 months, Bump-up CD | 3.70% |
| 36 months | 4.30% |
| 48 months | 4.00% |
| 60 months | 4.00% |
Synchrony’s specialty CDs
Synchrony also offers two CDs that function a bit differently from traditional CDs: A no-penalty CD and a one-time bump-up CD.
Synchrony’s no-penalty CD is a good fit if you’re worried about needing your money during your CD term. The CD has an 11-month term and doesn’t require a minimum balance. However, the CD APY is slightly lower than Synchrony’s six- and nine-month CDs right now, which are 4.25% and 4.30%, respectively. Synchrony’s high-yield savings account is also slightly higher at 4.15%.
Synchrony’s “bump-up” CD lets you raise your APY one time if Synchrony adjusts its interest rate offering for this product. This bump-up CD has a 3.70% APY and a 24-month term. That’s the same as the 4.30% APY of Synchrony’s traditional 24-month CD. In a rising rate environment, you may benefit from Synchrony raising the APY on its bump-up CD, giving you the option to increase your interest rate after depositing your cash. But as rates remain stagnant, a bump-up CD isn’t the best option in today’s rate environment.
How much can you earn with a Synchrony CD?
Synchrony offers competitive APYs on its CDs, ranging from 2.25% APY for a three-month CD to 5.15% APY for a 14-month CD. Right now, Synchrony’s longest term gives you a 4.00% APY for a five-year term. Interest compounds daily, offering you a little more money than CDs that compound monthly or yearly. That places Synchrony in the upper tier of the competition when it comes to CD rates. Here’s how much you’ll earn from each term if you deposit $1,000.
How much you earn with Synchrony CDs
| CD term | APY | Earnings on $1,000 deposit |
| 3-month | 2.25% | $5.58 |
| 1-year | 4.75% | $47.50 |
| 3-year | 4.30% | $134.63 |
| 5-year | 4.00% | $216.65 |
Penalties for early withdrawal at Synchrony
Like other banks, Synchrony charges a fee for withdrawing money from your CD before it reaches maturity -- the final day of the CD’s term. The fee will be applied to the amount of money you withdraw, meaning how much you pay will depend on how much you take out and what your current interest rate is.
Penalties for early withdrawal at Synchrony
Like other banks, Synchrony charges a fee for withdrawing money from your CD before it reaches maturity -- the final day of the CD’s term. The fee will be applied to the amount of money you withdraw, meaning how much you pay will depend on how much you take out and what your current interest rate is.
Synchrony CD penalties
| Term | Penalty |
| One year or less | 90 days of simple interest |
| More than one year but less than four years | 180 days of simple interest |
| Four years or more | 365 days of simple interest |
How Synchrony CD rates compare with other banks
Synchrony has above-average CD rates right now, offering a max of 5.15% APY on a 14-month CD.
While big banks with physical branches have been increasing some of their CD rates -- Wells Fargo, for example, is offering 1.50% on a 13-month CD -- rates at big banks are still much lower than the earning potential you’ll find at Synchrony and other online-only banks.
Many other online banks offer CDs with APYs on par with Synchrony -- including Ally and Barclays. Here’s how Synchrony stacks up when comparing five-year CDs.
CD rates, compared
| Bank | Five-year CD APY | Interest earned with $1,000 deposit |
| Synchrony | 4.00% | $216.65 |
| Ally | 4.25% | $231.35 |
| Barclays | 4.50% | $246.18 |
| Chase | 1.50% | $77.28 |
| Wells Fargo | 1.50% | $77.28 |
What to consider before opening a CD with Synchrony?
If you’re thinking about opening a new CD with Synchrony, make sure you think about these questions before setting up a new account:
How long are you comfortable locking your cash away? If you’re confident you won’t need the money for at least 14 months, Synchrony’s 14-month CD is your best bet. The 5.15% APY is better than any of this bank’s other CD rates, including long-term options such as the three-year and five-year CDs. However, you can still earn a good return by locking in a long-term CD with Synchrony.
Would a Synchrony savings account be a better fit than a CD? With a 4.15% APY, the bank’s high-yield savings account offers a competitive rate without the worry of an early withdrawal penalty. In fact, it still beats the bank’s own no-penalty CD.
How much are you planning to deposit? While Synchrony’s zero-dollar minimum deposit requirement is appealing, CD investing is only successful if you can contribute a sizable amount of money. Some of the best CD rates have minimum balance requirements. If you can meet them, you might earn just a bit more than you will at Synchrony. For example, Alliant Credit Union requires a $1,000 deposit, and its one-year CD offers a higher APY of 5.05% compared with Synchrony’s 4.75% APY.
How to open a CD with Synchrony Bank
Opening a CD with Synchrony is fairly simple. Here’s what you’ll need to do: If you’re a customer, you can log in to get started. If not, you’ll need to create an account online before you get started. Here’s what to expect:
- Fill out an online application: You’ll need your Social Security number and other personal identification information -- including your phone number, email address and physical address. You’ll also need to share your current employment.
- Select the account type you’re looking for: You’ll also be able to see the current CD rates for terms you’re interested in before opening an account.
- Review the fine print: Make sure you read the details of potential withdrawal penalties, options for transferring your interest and other terms and conditions of your CD.
- Transfer money into the account: The easiest option for funding your CD is arranging an ACH transfer from your checking account. You can, however, also snap a photo of a physical check and deposit it via the bank’s mobile app, or you can mail a check to the bank’s PO box address in Atlanta.
Read more: The Clock Is Ticking to Lock In a Long-Term CD: Why Experts Say You Shouldn’t Wait
FAQs
A certificate of deposit, or CD, is a type of savings account that pays you fixed interest when you deposit money for a set period of time, called the term. A CD’s term could be as short as one to three months and typically goes up to five years (though there are a few longer-term CDs out there).
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). With compound interest, you’ll earn interest on not only the money you deposited into the CD (the principal), but also on any interest that accumulates. The more often interest compounds, the more money you’ll earn over time. So, a CD that compounds daily would earn you a little more money than a CD that compounds weekly at the same rate.
Most banks charge early withdrawal penalties, but the exact penalty depends on the bank. Many banks, like Synchrony, will calculate a penalty as a number of days’ simple interest at the current interest rate. That will be deducted when you withdraw money from the CD. The amount you pay in these circumstances depends on the length of the CD term and the amount of money you’re withdrawing (for example, a longer CD term will typically have a greater penalty). Other banks may simply deduct from the interest you’ve earned, deducting anywhere from 90 days to one year of interest.
There aren’t caps on how much of a penalty banks can charge for withdrawing early. Therefore, it’s a good idea to read the fine print before investing in a CD, especially if you think you may withdraw money before the CD matures. If you’ll need the money before the term ends, a high-yield savings account may be the better option. You’ll earn slightly less interest but have direct access to your savings without penalty.
A CD is a more stable investment that offers guaranteed growth. It’s a good savings option if you don’t need to touch your money right away, and you want to earn a guaranteed interest rate. If you’re looking for a longer-term, safer savings option, you might consider an I bond -- secure government-backed investments sold directly to the public -- which right now earns 6.89% APY and allows you to withdraw your money penalty-free after five years (and you can leave your money in there for up to 30 years).
If you want to access your money at will and don’t mind earning slightly less interest, a high-yield savings account may make more sense. With a high-yield savings account, you can earn a higher-than-average interest rate (though not as high as some CDs), but have easier access to your savings.
Those looking to grow their money even more may be less enthusiastic about the safe and stable gains from CDs. While it’s possible to earn more through the stock market or other investment strategies, the stock market is much higher risk -- and in the current bear market, it isn’t the safest place to invest right now.
A no-penalty CD lets you withdraw your money before the term is up. The benefit of being able to withdraw early without penalty is certainly attractive, but, depending on the bank, this also means you might be earning a lower APY. This isn’t the case with all banks, though, so it’s important to understand your options in the market. If you think you’ll need money out of your CD before it matures, consider going with a no-penalty CD.
More savings rates
- Best CD Rates
- Best High-Yield Savings Accounts
- Best Savings Accounts
- Chase Savings Account Rates
- Bank of America Savings Account Rates
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.