Synchrony Bank CD Rates of June 2024

Synchrony Bank CD rates

Synchrony certificates of deposit have terms ranging from as little as three-month CDs to as long as five years. Interest rates are competitive across the board, but the exact percentages vary. 

One major perk is that rates are offered regardless of how much you deposit. You don’t have to meet a funding threshold to receive a favorable rate; Synchrony has no minimum deposit requirement at all.

Here’s a category-by-category look at Synchrony Bank CD rates today.

Standard CDs

Synchrony’s standard CDs have fixed interest rates. That rate is currently 5.00% APY for a 14-month CD, with no minimum balance.

Bump-up CDs

While most CD interest rates are considered set in stone for the duration of the CD’s term, bump-up CDs offer you a chance to increase your return. If the bank boosts the APY for its bump-up CDs at any time during your initial two year investment term, you have a one-time opportunity to ask for a rate increase to match.

Synchrony’s 24-month bump-up CDs offered 3.60% APY, with no minimum balance requirement.

No-penalty CDs

While most CDs levy penalties on investors who choose to withdraw money or close the CD before it reaches maturity, Synchrony’s no-penalty CD does away with those fees. But fee-free access to the money you stick into a CD comes at a cost — in this case, you’ll pay the price by agreeing to a low 0.25% APY. 

Below you can see Synchrony CDs APY against their term length:

*Figures are correct as of June 2024.

Synchrony Bank CD rates: What you need to know

Before you funnel your extra dough into a Synchrony Bank CD, take a moment to get to know how CDs work, what kind of return you can expect and what protections are in place to help safeguard your money.

Are Synchrony Bank CDs safe?

Synchrony Bank CDs are safe for two reasons:

• CDs are a stable form of investment. There is little risk involved in opening a CD. Your interest rate is locked in, meaning your ROI is unaffected by market fluctuations. CDs are also predictable — barring early withdrawals, you know exactly how much total money will be in the account when your CD matures.
• Synchrony accounts are FDIC-insured. Synchrony Bank is a member of the Federal Deposit Insurance Corporation. This independent agency insures consumer deposits up to $250,000 per depositor, per bank, per ownership category (joint account, single account, retirement account, etc.). Even if the bank fails, the money in your FDIC-insured CD is protected.

How interest is compounded

Synchrony CD rates compound daily. The more often interest is compounded, the more you stand to earn on top of your original deposit amount. Even better, compounded interest is calculated using each day’s new account total. This is different from simple interest, which only takes your account principal into account.

Although interest is earned daily, it’s added to your monthly statement once at the end of every cycle.

Early withdrawal penalties

Unlike a transactional account, such as your standard savings or checking account, you’re not meant to make additional deposits or withdrawals after the CD is funded. 

Ideally, you open the CD and then wait until the CD has matured, or reached the end of its term, to collect your funds. If you need to withdraw money early, you may be subject to early withdrawal penalties.

The amount you’ll pay in fees depends on how much you withdraw. 

With Synchrony, the penalty tiers are as follows:

• CDs with terms of one year or less: The equivalent of 90 days of simple interest
• CDs with terms of more than one year but less than four: The equivalent of 180 days of simple interest
• CDs with terms of four or more years: The equivalent of one year (365 days) or simple interest

You can avoid early withdrawal penalties by opting for Synchrony Bank’s no-penalty CD. However, that flexibility will cost you in terms of interest, with no-penalty rates hovering at just 0.25%.

Keep in mind that Synchrony has a 10-day grace period when a CD matures. This is a window of time during which you can withdraw your funds before the CD automatically renews and you’d have to pay a penalty to retrieve your money.

How much can you earn with a Synchrony Bank CD?

The amount of money you can earn with a Synchrony Bank CD depends on several factors, including how much money you deposit, what interest rate you have and the length of your CD’s term. 

For instance, Synchrony Bank’s six-month CD rates won’t be the same as the rates for a CD with a shorter or longer term. And if you withdraw money early, that will affect your final total.

One way to maximize your ROI while maintaining some financial flexibility is to build a CD ladder. 

With this strategy, you open several CDs with terms of various lengths. As the short-term CDs mature, you have access to funds and can either pay bills or reinvest that money in more short-term CDs. Meanwhile, your longer-term CD investments are still earning silently in the background, undisturbed.

Amount earned with a Synchrony Bank CD on a $10,000 initial deposit

*Figures are correct as of June 2024. The calculations shown are just a simple example. Always seek advice from a qualified professional before making important financial decisions or long-term agreements.

Is a Synchrony Bank CD right for me?

Synchrony Bank CDs are a widely accessible investment option suitable for both novice and experienced investors. 

With features like no minimum deposit, no monthly fees and terms ranging from just a few months to several years, it’s easy to choose the product that best suits your needs. CDs are also low risk, so you won’t have to worry about losing your cash if the market wobbles and interest rates veer off track.

On the other hand, Synchrony’s CD portfolio does not include jumbo CDs (CDs with a $100,000 minimum deposit) or CDs with terms exceeding five years. Therefore, consumers looking for long-term investments or interest-earning possibilities for larger amounts might want to explore alternatives.

Pros and cons of Synchrony Bank CDs

To make the decision-making process easier, see all our info about Synchrony Bank CDs in this list of pros and cons.

How to open a Synchrony Bank CD

It only takes a few minutes to open a Synchrony Bank CD. Because Synchrony is mostly an online institution with only five brick-and-mortar locations, it’s best to use the bank’s website to fill out an application. 

You’ll likely be asked to provide the following information (and, in some cases, a copy or digital image or certain documentation):

• Your legal name
• Your current residential and mailing addresses
• Your Social Security number
• A government-issued ID, such as a driver’s license
• Your checking account and existing bank routing numbers to help when funding your CD

How do CD rates from Synchrony Bank compare?

Synchrony Bank CDs compare favorably to CDs from other banks due to competitive interest rates, no minimum deposit requirements and no fees. You have plenty of term lengths to choose from, and specialty products like bump-up and no-penalty CDs give you even more ways to earn and save money.

But Synchrony’s commitment to accessibility falls a little short when it comes to high-end investment opportunities. You won’t find jumbo CDs or CDs with terms of more than five years here. Still, it’s hard to ignore how Synchrony’s rates stack up against other big institutions. 

Synchrony Bank CD rates vs. Capital One 360

Synchrony Bank and Capital One 360 have similar CD rates, but Synchrony comes out on top thanks to a superior six-month CD rate that interest compounds daily vs. Capital One’s monthly compounding schedule.

Check out how the rates compare:

*Figures are correct as of June 2024.

Synchrony Bank CD rates vs. Marcus CD rates

Marcus edges out Synchrony for six-month and one-year CD rates. However, unlike Synchrony, Marcus requires a minimum $500 deposit.

See how the rates compare:

*Figures are correct as of June 2024.

Synchrony Bank CD rates vs. Ally CD rates

Synchrony Bank offers far more CD term lengths and better rates than Ally. With other features like a $0 minimum deposit coming up a tie, Synchrony has a distinct edge.

Here’s how the rates compare:

*Figures are correct as of June 2024.

Other ways to save at Synchrony Bank

While Synchrony’s CD rates can be a tempting option for consumers interested in building a nest egg, the institution also has other ways it can help you grow your money.

High-yield savings account

Synchrony Bank offers high-yield savings accounts with interest rates of 4.75% APY. These accounts carry a host of benefits, including no minimum deposit, no minimum balance requirement and absolutely zero monthly fees. If you’re likely to need funds before a CD term ends, you may want to consider a savings account rather than a CD, as you can access funds without incurring an early withdrawal penalty. 

Money market account

Money market accounts (MMAs) are an attractive product because they offer consumers the flexibility of a checking account meshed with the opportunity to amplify savings. 

Synchrony Bank’s MMAs come with a number of key benefits:

• Complete transactions in person or online using checks, transfers and ATM withdrawals
• Synchrony-branded app allows for 24/7 banking
• MMA accounts are FDIC-insured

Money market accounts at Synchrony come with a 2.25% APY, with no minimum deposit, minimum balance or monthly fees.

IRA CD and IRA money market account

IRA CDs are certificates of deposit that earn interest, just like a regular CD, but the interest is tax-deferred until the account holder retires. That’s a marked difference from the way the IRS views a typical CD — any interest you earn there must be declared as regular income in the same tax year in which that interest is earned.

IRA money market accounts are also tax-deferred. You make your initial deposit through a traditional or Roth IRA and pay income taxes on any interest earned either when you withdraw money (if you have a traditional IRA) or never (if you have a Roth IRA). 

With a money market IRA, you can save for retirement without losing access to your money, and that kind of liquidity can be priceless. These accounts also have a distinct advantage over CDs in that you can add more money at any time.

Synchrony Bank IRA CD rates vary just like regular CD rates. Currently, an IRA CD with a 12-month term has an interest rate of 4.80% APY. Money market IRAs at Synchrony have a lower interest rate of 2.25% APY.