Synchrony Bank CD Rates: How They Compare

Synchrony Bank has among the highest rates for certificates of deposit among online banks, and there’s no minimum opening deposit. The bank also offers two types of specialty CDs — a no-penalty and bump-up CD — with solid yields.

Synchrony offers three types of CDs, all with a minimum deposit of $0:

• High-yield CDs: These CDs have a fixed rate and are subject to early withdrawal penalties. Rates for these are the highest among Synchrony’s CDs.

• No-penalty CDs: These CDs also have a fixed rate and the added benefit of no early withdrawal penalty, meaning you can withdraw the full amount any time after the first six days without cost.

• Bump-up CDs: These CDs have fixed rates with the possibility of one or more rate increases if the bank raises the rate on newly issued Bump-Up CDs and you request an increase. The CDs are subject to early withdrawal penalties.

Synchrony’s no-penalty CD balances flexibility and a solid return. It’s on our list of the best no-penalty CD rates.

Synchrony’s bump-up CD has a key advantage during a rising-rate environment. You may have the chance to get a rate increase during the CD term, which is a rare perk that reduces the risk of missing out on higher rates in the near future.

If you’re considering high-yield, no-penalty and bump-up CDs, there are three online banks that have them all: Ally Bank, Marcus by Goldman Sachs and Synchrony Bank. See how they differ based on three CDs each:

• Interest rates are fixed. If you open a Synchrony CD today, its annual percentage yield will stay the same until the CD expires. (The exception is a bump-up CD.) This fixed rate enables you to lock in a CD if rates are relatively high, though there is a risk of losing out if rates continue to rise. It’s hard to know when CD rates will go up, but CD rates are trending upward thanks to multiple Fed rate increases this year. Here’s a quick look at historical CD rates, including this year’s. Or, if you want a sample of rates each month, see current CD rates.

• You lose interest if you withdraw early. CDs are built to keep your money out of sight, out of mind. If you dip into a standard Synchrony CD before it expires, there’s an early withdrawal penalty, which means losing some or all of the interest you earned. There is an exception: a Synchrony no-penalty CD (compare with other no-penalty CDs).

Synchrony is an online-only bank with a focus on two main product categories: credit cards and savings accounts. Its three types of savings accounts include a regular savings account, a money market account and CDs. All have competitive rates, and none of them have monthly fees or minimum balance requirements. Synchrony doesn’t have a checking account, but it provides free ATM access through an optional ATM card linked to the savings account or MMA. The bank has highly rated mobile apps, and phone support is available every day for savings customers.

Synchrony Bank has a strong lineup of CDs thanks to competitive yields, no minimums and several types of CDs. If you want to compare more options, check out our list of best CD rates this month.

Learn more about the journey of choosing, understanding rates, opening and closing CDs.

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Compare the best rates for various CD terms and types:

Here’s a quick list of CD rates at traditional and online banks and a brokerage: