This morning Synchrony Bank re-introduced a competitive 14-month CD special. The CD special earns 2.80% APY. Minimum opening deposit is $2,000. This is a limited-time offer. According to Synchrony’s front page, it will only be available through December 2, 2018.
Synchrony Bank first introduced a 14-month special on May 1st. At that time, the special CD was a rate leader for nationally available CDs with terms around 12 months. The rate went up on June 19th. The 14-month CD special ended on July 17, 2018. Since July, Synchrony has also come out with 13-month and 15-month CD specials. Its last special was a 15-month CD with a 2.75% APY. That began on October 2nd, and it ended this morning.
According to the small print of the offer, customers “must apply online. IRAs and Trusts are not eligible for offer.” For the full list of Synchrony CD and IRA CD rates, please refer to the CD rates section of our Synchrony Bank page.
My thanks to DA reader, solarado, for a DA Forum post on this CD special.
Synchrony CD Features
Below are two important CD FAQs that bear repeating:
Q: Can I withdraw my interest from a CD?
Any amount of interest paid during the current term of the CD can be withdrawn at any time without penalty
Interest can be transferred internally to a Synchrony Bank Money Market or High Yield Savings Account, a registered external account, or sent by check to the account address we have on file.
Q: Is there an early withdrawal penalty for CDs?
An early withdrawal penalty may be assessed if you make a withdrawal prior to the CD maturity date, which is the last day of the CD term. The penalty is applied to the amount of principal withdrawn (no penalty on interest). The bank does not charge an early withdrawal penalty on a CD for the death of an account owner with proper verification.
- Terms of 12 months or less: 90 days of simple interest at the current rate.
- Terms of more than 12 months but less than 48 months: 180 days of simple interest at the current rate.
- Terms of 48 months or more: 365 days of simple interest at the current rate.
High Yield Savings Account
Synchrony Bank High Yield Savings Account (HYS) remains at 2.05% APY for all balances. The last rate increase occurred on November 6th when the rate went up by 15 bps. This rate continues to be competitive for a no-minimum, non-promotional savings account. Please refer to my Synchrony High Yield Savings review for more details.
Additional Services for Deposit Account Customers
Synchrony Bank provides deposit account holders with complimentary Identity Theft Resolution Services through CyberScout which can offer assistance if you are ever a victim of Identity Theft.
Synchrony Perks Program offers additional rewards based on account balance size and the length of time you’ve been a customer. Diamond level is reached with a $250k balance or 5 years of tenure. Some of the perks that Diamond customers receive include three free wire transfers per statement cycle, a dedicated customer service phone number and unlimited ATM reimbursements.
Headquartered in Draper, Utah, Synchrony Bank is an internet bank that offers its services and product line to U.S. citizens and “U.S. lawful permanent residents” who are 18 years or older, have a permanent U.S. residential address, and possess a valid Social Security number.
Synchrony Bank accounts can be opened online, but IRA and Trust accounts require paper forms. Funding an account can be done with an electronic funds transfer. This is done by providing Synchrony with the account number and routing/transit number of an external bank account. If Synchrony can’t automatically verify your external account, it’ll use a trial deposit system. Once the online application completes, Synchrony Bank will mail a welcome kit within 7 to 10 days. The welcome kit includes a signature card that must be signed and mailed back. In addition, the welcome kit includes a deposit slip. If you decide to fund the account with a check instead of an online transfer, a check must be mailed with the deposit slip.
The online application can accommodate up to four beneficiaries per account. Unlike some other financial institutions, Synchrony Bank does not require Social Security numbers for beneficiaries: only name, address, and date of birth are necessary to add a beneficiary. CSR suggested having all information and documentation for the applicant and any beneficiaries on hand, since the online application is time sensitive and will time out if there’s a long period of inactivity.
Synchrony Bank has an overall health grade of “A" at DepositAccounts.com, with a Texas Ratio of 9.66% (excellent), based on September 30, 2018 data. In the past year, Synchrony Bank has increased its total non-brokered deposits by $6.35 billion, an excellent annual growth rate of 14.49%. Please refer to our financial overview of Synchrony Bank (FDIC Certificate # 27314) for more details.
Synchrony Bank can trace its origins to a brick-and-mortar institution, the Monogram Bank, USA, which was established in Ohio in 1988. From 1989 to 2014, the Bank moved its headquarters four times and re-branded five times, with the current name change occurring in June 2014. Prior to the name Synchrony Bank, the Bank was known as GE Capital Retail Bank, reflecting its tie to GE Capital, its parent company. In January 2013, GE Capital Retail Bank acquired the deposit base and online deposits business of MetLife Bank, N.A.
Currently, Synchrony Bank is the 30th largest bank in the country with assets in excess of $90.20 billion.
How the 14-Month CD Compares
When compared to 213 similar length-of-term CDs tracked by DepositAccounts.com which are available nationally and have minimum deposit requirements of $10k and under, only one bank and one credit union have a higher rate.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|3.00% APY||12-month CD ($1k min)||Greenwood Credit Union|
|2.81% APY||12-month eCD ($10k min)||Virtual Bank|
|2.80% APY||14-month CD ($2k min)||Synchrony Bank|
The above rates are accurate as of 11/26/2018.
To find the top CD rates, both nationwide and state specific, please refer to our CD Rates Table page.