Synchrony is a financial services company known for its store-branded bank cards for big firms akin to Walmart, Amazon and Lowe’s. Moreover, Synchrony Bank offers a big number of consumer savings products, including money market accounts, certificates of deposit (CDs), IRAs and high-yield savings accounts.

We researched Synchrony’s high-yield savings account (HYSA) to supply a comprehensive review of its rates of interest, fees, customer support and accessibility. Read on to search out out if Synchrony’s HYSA account or other savings products could be a superb fit to your personal finance goals.

Best high-yield savings account for easy accessibility to funds

One of the vital attractive features of Synchrony’s high-yield savings account is the variability of the way to access your funds. Unlike many other high-yield savings accounts, Synchrony’s HYSA comes with an ATM card to withdraw funds at ATMs. Moreover, you possibly can link your savings account to an external checking account for electronic transfers, schedule wire transfers or request a transfer by phone.

Note that Synchrony imposes limits on some transactions — outgoing electronic transfers, phone transfers, wire transfers and phone or point-of-sale purchases are capped at six per statement cycle. You might be charged a $25 fee in case you exceed this limit.

Nonetheless, withdrawals via ATMs are unlimited, and you should utilize any Plus or Accel ATM at no charge. If you happen to use an out-of-network ATM, Synchrony won’t charge a fee, however the ATM owner or operator might, and Synchrony reimburses only $5 in ATM fees per statement cycle.

Synchrony high-yield savings accounts pros and cons

Pros explained

ATM card with no limits on the variety of ATM withdrawals per cycle

Virtually all high-yield savings accounts offer withdrawals via electronic transfer, but just some include access to funds via ATMs. Synchrony Bank’s high-yield savings account includes an ATM card you could use totally free at any ATM with a Plus or Accel logo. There isn’t any limit on what number of withdrawals you possibly can make per cycle. Nonetheless, you can not withdraw greater than $1,000 per day.

Note that Synchrony doesn’t charge for using out-of-network ATMs, but it’s possible you’ll still incur a fee from the ATM operator — and Synchrony only reimburses as much as $5 in ATM fees per cycle.

Competitive annual percentage yield (APY)

Synchrony offers competitive rates on all its savings products — high-yield savings accounts, certificates of deposit (CDs) and money market accounts (MMAs). While these rates can vary, Synchrony consistently offers customers a number of the highest rates available in the marketplace.

No monthly fees or minimum balance requirement

Synchrony doesn’t charge a monthly maintenance fee for its high-yield savings account. Moreover, there’s no minimum balance requirement. This implies you’re free to withdraw funds as needed without worrying a few possible low-balance penalty or overdrafting your account consequently of a monthly fee.

No minimum initial deposit required

There isn’t any minimum deposit requirement to open a Synchrony high-yield savings account. It is a plus for anyone who’s ready to begin saving but can’t commit to a substantial sum just yet.

Cons explained

ATM card shouldn’t be similar to a debit card and will not be accepted by some businesses

The ATM card included with the Synchrony high-yield savings account shouldn’t be similar to a debit card, which usually carries a card network logo (e.g. Visa, Mastercard) and works anywhere that card network is accepted. Moreover, a debit card often has a security code, called a Card Verification Code (CVV), on the back. Synchrony’s high-yield savings account card has neither of those features, so it will not be accepted by some merchants, whether for shopping online or in-person transactions.

Non-ATM withdrawals (e.g. electronic transfer) are limited to 6 per statement cycle

Synchrony allows only six electronic transfers or withdrawals from its high-yield savings and money market accounts every month. Point-of-sale purchases are included on this limit; the one sort of withdrawal that has no limit is withdrawal by ATM card at an ATM.

This withdrawal limit for savings accounts was originally set by the Federal Reserve under Regulation D. Nonetheless, in 2020, the Fed suspended this regulation, allowing banks to permit unlimited transfers and withdrawals. Some banks have done away with limits, while others haven’t, and Synchrony is one that also imposes this rule.

No physical branches

Synchrony doesn’t have any physical locations, meaning customers might want to handle all their banking needs online, via mobile app or by phone. This is usually a challenge for those more comfortable with in-person service.

Synchrony high-yield savings account offerings

Synchrony Bank offers quite a lot of savings products starting from IRA and certificates of deposit (CD) accounts to high-yield savings and money market accounts (MMAs). These accounts include FDIC insurance as much as $250,000 per depositor, but they vary by way of rates of interest, terms, transfer limitations and tax implications. Read on to learn the main points of every savings product.

High-yield savings account

Synchrony Bank’s high-yield savings account contains a competitive annual percentage yield (APY) and no monthly fees or minimum balance requirement. There’s also no initial deposit required to open an account. (Note, nonetheless, that accounts left with a $0 balance for greater than 60 days could also be subject to closure.)

You may fund a Synchrony high-yield savings account via mobile deposit on the Synchrony app, electronic transfers from external bank accounts, wire transfers or transfers coordinated by phone with a Synchrony representative. The account comes with an ATM card, and customers can withdraw as much as $1,000 every day fee-free at any ATM with a Plus or Accel logo. Synchrony reimburses as much as $5 in out-of-network ATM fees per statement cycle.

Interest earned on a high-yield savings account is compounded every day and is credited to the account monthly on the statement date. While Synchrony currently offers a competitive annual percentage yield, this rate is variable and might change at any time, so it is vital to examine the rates periodically.

Money Market account

Synchrony’s money market account comes with all the same features and advantages because the high-yield savings account, but customers also get check-writing privileges. Note that this withdrawal method can also be subject to Synchrony’s cap of six withdrawals per cycle limit. Moreover, the annual percentage yield on the Money Market account is significantly lower than that of the high-yield savings account.

Certificate of deposit (CD)

Synchrony Bank also offers certificates of deposits (CDs), which earn a hard and fast rate of interest in your deposit (principal) over a certain amount of time. Whenever you purchase a CD, you comply with leave your money within the account for a set time period. The top of this era, generally known as the maturity date, is if you will receive your principal plus the interest earned.

Nonetheless, all Synchrony CD accounts allow customers to withdraw interest earned without penalty. Still, withdrawing the principal before the maturity date will end in a penalty starting from 90 to one year of easy interest at the present rate.

Synchrony offers three different CD options: a regular CD, a bump-up 24-month CD and a no-penalty 11-month CD. The usual CD has terms that range from three months to 5 years. Rates of interest differ depending on the length of term chosen, with the best rates currently being offered for terms between six and 18 months.

The bump-up 24-month CD offers the power to “bump up” your rate of interest one time through the term, allowing you to profit from any potential rate increases. The no-penalty 11-month CD allows customers to withdraw their principal with out a penalty before the maturity date as early as six days after account funding.

IRA CD

An Individual Retirement Account Certificate of Deposit (IRA CD) is a sort of retirement savings account that mixes the guaranteed returns of a CD with the tax benefits of an IRA. Synchrony offers its IRA CDs in each traditional and Roth formats with access to the identical term lengths offered for the usual CD.

Along with the early withdrawal penalty related to CDs, withdrawals from an IRA CD may also be subject to additional penalties and taxes from the IRS.

IRA money market account

Synchrony also offers an IRA money market account with no minimum balance requirement. This account is analogous to the IRA CD in that it combines a money market account with the tax benefits of an IRA. While you possibly can access the funds on this account at any time without penalty from Synchrony, it’s possible you’ll still be subject to IRS penalties for withdrawing funds from the account prior to the age of 59.5.

Synchrony high-yield savings account pricing

Synchrony offers competitive rates of interest on all of its accounts, although the annual percentage yield is particularly strong on its high-yield savings account. As well as, there are not any monthly maintenance fees or minimum balance requirements for its various savings accounts.

Synchrony high-yield savings account financial stability

Financial evaluation firm Fitch gives Synchrony Bank a BBB- financial stability rating with a stable outlook, while Standard & Poor’s has provided a BBB rating with a stable outlook. These investment grade rankings indicate that the corporate is in a position to meet its financial obligations but could also be subject to some risk from opposed economic conditions. Synchrony Bank can also be an FDIC-insured institution, meaning your deposits are protected as much as $250,000 per depositor.

Synchrony high-yield savings account accessibility

Availability

Synchrony Bank serves U.S. customers in all 50 states, Washington, D.C. and U.S. territories. Nonetheless, the corporate has no physical locations, so you possibly can only access your account online or by phone.

Contact information

You may reach Synchrony Bank’s customer support team via live chat on the corporate’s website or mobile app. Customer support representatives are also available by phone at 1-866-226-5638, Monday through Friday from 8 a.m. to 10 p.m. ET and on weekends from 8 a.m. to five p.m. ET.

User experience

Synchrony’s website and mobile app simplify the management of your high-yield savings account. The intuitive and user-friendly interface allows effortless fund transfers between accounts, provides visibility into check deposits made via the mobile app and permits you to check your account balance easily.

Moreover, the corporate offers detailed product pages displaying current rates of interest. Plus, its website contains a comprehensive FAQ section, ensuring quick answers to common questions.

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Synchrony high-yield savings account customer satisfaction

Third-party customer reviews for Synchrony Bank are mixed. Nonetheless, most reviews are for Synchrony’s bank card offerings, not its savings products. The few customer complaints related to its savings products mention issues with website login and difficulties with ATM card activation, while positive reviews concentrate on its competitive rates, easy-to-use website and responsive customer support.

The corporate is not accredited by the Higher Business Bureau but does hold an A+ rating from the organization. It also demonstrates its dedication to customer support on the platform, with nearly 2,500 customer complaints successfully closed out previously 12 months.

How we evaluated Synchrony high-yield savings account

We evaluated Synchrony’s online savings products and determined crucial criteria. Our research led us to contemplate the next as paramount:

• Rates of interest: We evaluated the varied Synchrony Bank savings rates and compared them to the very best savings account rates from other firms.

• Accessibility: We looked relaxed of access to account funds, online services and customer support support.

• Fees: We considered fees related to opening a Synchrony savings account in addition to whether there are any monthly or annual fees.

• Withdrawal methods and limits: We looked into the withdrawal methods available for Synchrony Bank’s high-yield savings accounts, in addition to any limits imposed on withdrawals.

• Customer reviews: We checked out Synchrony Bank high-yield savings account customer reviews and complaints to get an overall feel for customer satisfaction.

Summary of Money’s Synchrony high-yield savings account review

Whether you are just learning what a high-yield savings account is or already looking for the best high-yield savings accounts, it is vital to contemplate what separates an important product from the remainder.