Vault’s Viewpoint on Synchrony Bank
- The Synchrony Bank High Yield Savings account has an APY of 4.75%, which is over 10x higher than the national average.
- The account also has no minimum deposit, no minimum balance requirement and no monthly fees.
- If your goal is to earn the maximum APY possible, you’d be better served with another high-yield savings account.
Overview of the Synchrony Bank Savings Account
Synchrony Bank only offers one savings account—the High Yield Savings. Interest is compounded daily in the account and credited monthly on your statement date. You don’t have to pay any fees to open or maintain the account. In fact, the only fees the bank charges are $25 for outgoing wires, $25 for stop payments and $25 for an overnight check.
To open your account, you don’t need a minimum deposit. You also don’t have to maintain a minimum balance to avoid fees. The only caveat is that, if your account has a $0 balance for more than 60 days, Synchrony may close it. There is a maximum account limit of $3 million across all of your individual and joint accounts.
As a bonus, your Synchrony savings account also comes with an optional ATM card. This is a rarity for savings accounts. Having an ATM card can be useful if you want to withdraw cash while on the go. Synchrony doesn’t charge ATM fees, and it even refunds up to $5 of domestic ATM fees charged by other institutions each month. However, the savings account does not come with checks. Just keep in mind that you’re limited to six total transfers or withdrawals every month, whether that’s through an ATM or external transfer.
| Savings Account | APY | Minimum Deposit | Monthly Fees |
| High Yield Savings | 4.75% | $0 | $0 |
Pros and Cons of a Synchrony Bank Savings Account
Pros
The Synchrony savings account has a lot of positives. Overall, it’s a good account for people who want a secure place to store their money while also earning a high APY.
- Above-average APY
- Ability to make ATM withdrawals
- No monthly fees or minimum balance requirements
Cons
As with any banking product, the Synchrony High Yield Savings account does have a few drawbacks. Here are some things you may want to consider before opening an account.
- Limited to six transfers or withdrawals a month
- No in-person branches
- Checks not available with savings account
How Much Can You Earn With a Synchrony Bank Savings Account?
You might be wondering how the Synchrony Bank savings interest rate translates into real-world earnings. While you might not earn interest to live off of, you’ll be able to add a nice boost to your savings that should help with your goals.
To help you better understand your estimated earnings, the table below assumes you make an initial $10,000 deposit and don’t touch the money for the length of the investment period. It also assumes the 4.75% APY stays steady during that time. However, since APYs typically fluctuate with the market, chances are it would go up and down and affect your overall earnings.
Your earnings will also vary if you make withdrawals or additional deposits, so consider the below information more of an estimation rather than a steadfast projection. If you make additional deposits, you’ll stand to earn more in interest—and if you withdraw some of the money, it’ll decrease your earnings.
| Savings Account | Investment Period | APY | Estimated Earnings |
| High Yield Savings | 6 months | 4.75% | $234.74 |
| High Yield Savings | 1 year | 4.75% | $475.00 |
| High Yield Savings | 2 years | 4.75% | $972.56 |
| High Yield Savings | 5 years | 4.75% | $2,611.60 |
How to Open a Savings Account With Synchrony Bank
- Decide how you want to open the account. You can open your account online, over the phone or by filling out a paper application. Opening an account online is the easiest option, as the process takes about 10 minutes.
- Provide your personal information. To verify your identity and comply with the USA PATRIOT Act, Synchrony Bank will collect some of your personal information. This includes your name, address, phone number, email and Social Security number.
- Answer additional questions. Next, you’ll need to tell Synchrony your country of citizenship. To qualify for an account, you have to be a U.S. citizen or U.S. permanent resident alien. You’ll also create a security question and provide information on your occupation.
- Choose your account type. Synchrony will ask you what kind of account you want to open—select the High Yield Savings. You’ll have the option to make it an individual or joint account. You can also decide at this stage whether or not you want an ATM card.
- Review the terms. At this stage, Synchrony verifies your information and provides you with final account disclosures to review. Agree to the terms to get online access to your account.
- Fund your account. The final step in opening your Synchrony account is to fund it. You can transfer money from an existing Synchrony Bank account, an external account, a mobile check deposit, direct deposit, wire transfer or a personal or cashier’s check.
Alternatives to a Savings Account With Synchrony Bank
If the Synchrony Bank savings interest rate isn’t quite as high as you were hoping for, there are other ways to earn a higher APY on your money. Here are a few of them.
Synchrony Bank CD
If you choose a Synchrony Bank certificate of deposit (CD), you can earn up to 5.15% APY on your money. This APY is valid for 9-month terms, but Synchrony Bank also offers eight other terms should you desire a shorter or longer investment. You don’t need a minimum balance to open an account, which is helpful if you don’t have a ton of extra cash sitting around.
Unlike savings accounts, CDs don’t let you make withdrawals without penalty until the end of the term. Your money is locked away, so to speak, unless you want to forfeit up to 365 days of interest as a penalty. However, if you don’t have a problem letting your money sit, then a CD is a solid pick.
UFB Direct Secure Savings
The UFB Direct Secure Savings account made our list of the best 5% interest savings accounts for a reason. UFB Direct currently offers up to 5.25% APY with no minimum deposit requirements or monthly service fees. Like with the Synchrony account, you also get a free ATM card.
UFB Direct is another online bank, so it’s not a good pick if you prefer in-person customer service. That said, it does offer 24/7 customer service online or over the phone.
Synchrony Bank Money Market Account
If the thing that was holding you back from opening a Synchrony High Yield Savings was the lack of check-writing privileges, then Synchrony’s Money Market Account may be the answer. The bank’s money market account gives you the option for both an ATM card and check writing, so you can treat it almost like you would a checking account—although you are still limited to six transfers or withdrawals each statement cycle.
Naturally, the main difference is the APY. The APY for this account is currently sitting at 2.25%, which is lower than Synchrony’s savings account. However, you still have no minimum deposit requirements and no monthly fees—so that could outweigh this con, at least partially.
Frequently Asked Questions
Is the Synchrony High Yield Savings Account FDIC Insured?
Yes, the Synchrony High Yield Savings account comes with up to $250,000 in FDIC insurance per ownership category. That means if you have both the High Yield Savings and Money Market Account, the values of these accounts combine to count toward the $250,000 limit.
Is Synchrony Bank Safe Right Now?
Synchrony Bank is a safe place to store your money. It offers 24/7 security monitoring to protect your account as well as identity theft protection and emergency assistance if you ever lose your card. Additionally, the $250,000 in FDIC insurance means you’re protected should the bank become financially unstable.
How Often Does the APY Change at Synchrony Bank?
Synchrony notes that its APYs are subject to change at any time without notice. Typically, APYs fluctuate along with the federal funds rate. This rate is reviewed by the Federal Open Market Committee eight times a year, so you might see changes to your APY around those times.
