Synchrony Bank CD Interests Rates: Month of May 2025
Let's Talk Synchrony Bank CDs
Synchrony Bank, an online banking powerhouse, offers a variety of financial services, with a focus on certificates of deposit (CDs) that come with terms between three months and five years. Synchrony Bank CD rates of up to 4.25% are competitive with some of the best CDs out there for select term lengths.3
No need to worry about minimum balance requirements with Synchrony Bank, as they don't have any.4 Besides ordinary CDs, Synchrony Bank also provides two specialty options for those interested in bump-up CD accounts and no-penaly CD choices.
Synchrony Bank CDs at a Glance
Before diving headfirst into a new CD, it's smart to explore offers from several banks and compare interest rates, account features, balance requirements, and perks. By comparing various financial institutions, you'll be well-equipped to decide if a CD from Synchrony Bank is the best fit for you.5
Keys to Synchrony Bank CDs
In addition to appealing annual percentage yields (APYs), especially on their long-term products, Synchrony Bank CDs feature no minimum balance requirements. If you withdraw funds before the maturity date, you'll face an early withdrawal penalty—ranging from 90 to 365 days' worth of simple interest at the current APY, depending on your account's terms.6
Worth noting is that Synchrony Bank provides a short 10-day grace period after your maturity date. During this time, you can add additional funds to your account, renew your CD, transfer cash to another account, or withdraw your money. If you don't make a decision, Synchrony Bank will automatically renew the CD for you and send a renewal notice.7
Pro Tips for CD Shopping
When searching for a new CD, remember to consider factors beyond the interest rates offered. Although earning a high return on your savings matters, it's crucial to pay attention to other account features that may impact you.
Synopsis of Synchrony Bank CD Benefits and Drawbacks
- Competitive rates
- No minimum balance requirement
- Less competitive rates
- Early withdrawal penalty
Pros Explanation
- Competitive rates: Synchrony Bank offers rates of up to 4.25%, which is higher than many other CDs.
- No minimum balance requirement: Unlike many CDs, Synchrony Bank CDs do not have minimum balance requirements.
Cons Explanation
- Less competitive rates: Certain Synchrony CDs have average rates; you can easily find higher rates by shopping around.
- Early withdrawal penalty: Although many CDs have an early withdrawal penalty like Synchrony's, you can find some CDs without this restriction if flexibility is important to you.
Background on Synchrony Bank
Primarily an online bank, Synchrony offers competitive interest rates on savings, money market, and CD accounts. The bank partners with various retailers to provide co-branded credit cards. Synchrony Bank also offers CareCredit financing for healthcare procedures and purchases. The bank currently does not provide checking accounts, mortgages, investments, or other products typically offered by other financial institutions.8
Synchrony Bank's banking products include savings accounts, money market accounts, CDs, and credit cards.
Alternatives to Synchrony Bank CDs
- High-yield savings accounts: If you're willing to open an online savings account elsewhere, you may be able to earn higher rates than Synchrony offers.
- High-yield checking accounts: Some checking accounts offer relatively high rates. Just be aware of their limitations.
- CDs: Synchrony Bank's CD rates are competitive, but you can also explore CDs from other financial institutions.
- Money market account: You can find a return on your savings with a money market account.
- Treasury securities: These government-backed investments sometimes offer even higher rates than CDs and may be more liquid.
Frequently Asked Questions
Are Synchrony Bank CDs Worth It?
CDs, including Synchrony Bank CDs, may be worth considering under the following circumstances:
- You prefer a low-risk way to grow your savings
- Keeping your funds locked in a CD for a set period doesn't inconvenience you
- Synchrony Bank's rates and benefits seem like a good fit for your financial goals
Are Synchrony Bank CDs FDIC-Insured?
Synchrony Bank is a member of the Federal Deposit Insurance Corporation (FDIC). Therefore, deposit accounts with the bank, including CDs, are insured up to $250,000 per ownership category.
Should I Get a Synchrony Bank CD?
While Synchrony Bank's highest CD rate may not be the highest available APY, the bank offers higher APYs than many competitors for longer-term CDs. If you're looking for a bank without minimum deposits, Synchrony stands out. Furthermore, the financial institution offers a wide range of CD terms and specialty CD products, providing added flexibility when seeking low-risk savings opportunities.
- Synchrony Bank, known for its online banking services and focus on Certificates of Deposit (CDs), provides competitive rates of up to 4.25%, attractive to investors.
- In the banking and finance industry, Synchrony Bank is notable for offering CDs with no minimum balance requirements, making these financial products more accessible to a broader demographic of personal-finance enthusiasts.
- When exploring CD options in the industry, it's essential to compare offers from various banks, considering factors like interest rates, account features, balance requirements, and perks, to find the best fit for your financial objectives.
- Synchrony Bank CDs may require an early withdrawal penalty, ranging from 90 to 365 days' worth of simple interest, if the account holder withdraws funds before the maturity date.
- Within the 10-day grace period following the maturity date of a Synchrony Bank CD, account holders can add additional funds, renew the CD, transfer cash to another account, or withdraw their money without any automatic renewal, giving them some flexibility in managing their personal finance and banking needs.
