Synchrony Bank High Yield Savings Account Review

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Synchrony Bank High Yield Savings Account Review

The Synchrony High Yield Savings Account is a low-risk investment option you’ll want to explore if you’re looking for a solid interest rate with a trusted online bank.

About Synchrony Bank

Synchrony Bank is a well-known credit card issuer for many retail stores, including Walmart, Amazon and JCPenney. In 2014, GE Money Bank became known as Synchrony Bank. Although the name may be relatively new, Synchrony Bank has been around since 1988. Over $40 billion is deposited with Synchrony.

Products and Services

Synchrony Bank isn’t technically an online-only bank. However, there is only one single brick and mortar branch location, which is based in New Jersey. Fortunately, Synchrony offers a variety of online savings options for consumers throughout the country. It’s important to mention that although Synchrony Bank features savings products, they do not provide checking accounts. Some of the products and services offered include certificates of deposit, individual retirement accounts (IRAs), money market accounts and high-yield savings accounts.

High-Yield Savings Account Overview

If you’re looking for a safe and conservative investment option, a high-yield savings may be the right choice for you. As the name implies, a high-yield savings account is basically a regular savings account associated with a higher interest rate. Synchrony Bank also offers a money market account, which is a similar product. The interest rate on the money market account is lower than a high-yield savings account, but there is no opening balance requirement. You can open a high-yield savings account through Synchrony Bank with just a penny.

CDs Versus High-Yield Savings Accounts

A certificate of deposit, known as a CD, is an alternative to the high-yield savings account. The interest rates are often higher, but your funds are tied up for a specified period of time. CD terms can range from one to 10 years. If you access the money before the maturity date, you’ll get hit with a steep penalty. High-yield savings accounts are attractive options for people who may need to dip into their accounts. Unless you know you will not need to make a withdrawal, a high-yield savings is the better option.

Bank Security

In addition to the safety a high-yield savings account offers, you can rest assured knowing your money is safe with Synchrony Bank. They are a member of the Federal Deposit Insurance Corporation, which assures your accounts are protected up to $250,000.

Interest Rates

Synchrony Bank boasts some of the most competitive rates in the banking industry. Online banks are often able to provide higher interest rates because they save money by eliminating the cost of running physical branches. Keep in mind, interest rates are subject to change daily. At the time of publication, the rate for a $0.01 to $25,000 deposit is 1.05 APY. After six months, $4,000 will grow to $4,021. You can check the most current rates and even compare rates among leading banks here. Although high-yield rates are not as high as some riskier investment options, they provide safe, consistent growth and peace of mind.

Account Fees

The good news is that not only does this Synchrony savings account have no monthly service fee, but it also has no fee if you have a zero dollar balance. However, there are fees for outgoing wire transfers.

 

Withdrawing Your Funds

You can easily access your money as needed. There are no penalties if you need to close the account. You are not required to keep it open for a certain period of time. You can withdraw money over the phone, online or at an ATM. If you need help with the process, customer service representatives are available by phone to assist you.

Customer Service

Synchrony Bank provides excellent customer service over the phone. There is no online chat option to speak to a representative, but agents are readily available when you call customer service during business hours.

Summary

With no monthly fees, great customer support, and a high interest rate, Synchrony Bank should be one of the first banks you consider when opening a new online savings account. Here at Banks.org, you can compare Synchrony’s interest rate to the rates provided by other banks.