Synchrony CD Rates Today
Business Insider’s personal finance team compared Synchrony’s CDs to the best CD rates and found it to be an industry leader.
Synchrony Bank CD rates are some of the best for people who don’t have much money to open an account. It’s also a good choice for people who want to work with a well-known bank, or who want to open multiple types of CDs.
Current Synchrony Bank CD Rates
Synchrony has three types of CDs: standard CDs, a bump-up CD, and a no-penalty CD. Its standard CDs and bump-up CDs offer good rates, but its no-penalty CD offers a low rate compared to the best no-penalty CD rates.
Synchrony Standard CD Rates
Besides the bank’s 3-month CD, Synchrony pays high rates on most standard CD terms. You might find some banks with higher rates for specific terms, but compared to most brick-and-mortar banks or popular online banks, Synchrony rates still stand out. The bank also has more terms to choose from than most other banks.
Synchrony No-Penalty CD Rates
The Synchrony No-Penalty CD has an 11-month term. It pays 0.25% APY. Other online banks might have higher minimum opening deposit requirements but also more competitive rates.
Synchrony Bump-Up CD Rates
The Synchrony Bump-Up CD has a 2-year term and pays 3.00% APY. With a bump-up CD, you can request a rate increase to your CD’s normally fixed interest rate once during the term if Synchrony increases its rate on the CD.
It’s worth noting that Synchrony’s regular 2-year CD pays a higher rate right now. If you want a more straightforward CD, the regular 2-year term may be more suitable.
Overview of Synchrony CDs
Synchrony’s standout CD feature is its low minimum opening deposit. All of its CDs have a $0 minimum opening deposit, which is very rare for CDs. It’s common for CDs to have minimum opening deposits of $1,000, so if you’re thinking of opening a CD with a small amount of money, Synchrony might be a good choice for you.
Synchrony’s CD rates are strong overall, with the exception of its no-penalty CD. That being said, you can find slightly higher CD rates at other online banks and credit unions if Synchrony’s minimum opening deposit isn’t a draw for you.
Synchrony CD Pros and Cons
Synchrony CD Rate Pros
- Variety of regular CD terms, including terms you wouldn’t find at most banks
- Access to specialty CD terms that aren’t commonly available, like a no-penalty CD and bump-up CD
- Pays more than average CD rates for most standard CD terms
- Bump-up CD rate pays a good rate
- $0 minimum opening deposit for CDs
- Standard early withdrawal penalties
Synchrony CD Rate Cons
- No-penalty CD pays a low rate compared to the best no-penalty CDs
- Must manage the account online (bank does not have physical branches)
- Other online financial institutions may offer slightly higher CD rates right now for standard terms
- Must call to cash out CD (other online banks may allow you to handle this through online banking)
Synchrony Bank CD Alternatives
Synchrony CDs vs. Ally CDs
Synchrony and Ally CDs are very similar. Both banks have $0 minimum deposits, and both offer three types of CDs.
For regular high-yield CDs, Synchrony pays 0.25% to 4.40% APY, and Ally pays 2.90% to 4.05% APY. The better rate will depend on which term you choose. It’s worth noting that Synchrony has more term options than Ally, such as 15-, 16-, and 19-month CDs.
Both banks have an 11-month no-penalty CD; Synchrony pays 0.25% APY, and Ally pays 3.75% APY.
Synchrony has a bump-up CD — Ally offers something similar, but the bank calls it a Raise Your Rate CD. They work the same way: If the bank increases its rate on that type of CD during your term, you can request that your rate go up, too.
There are a couple of differences, though. Both banks have 2-year terms that let you request an increase once. But Ally also has a 4-year term that allows two increases. Synchrony pays 3.00% APY, while Ally pays 3.40% APY on both the 2-year and 4-year Raise Your Rate CDs.
Synchrony CDs vs. American Express CDs
American Express® CDs are another good option if you don’t have much money to open an account, because like Synchrony, American Express National Bank has a $0 minimum deposit.
American Express National Bank (Member FDIC)’s offerings are much more limited, though. It only has regular CDs, with no special options like no-penalty or bump-up CDs. It also has fewer terms. American Express National Bank pays 3.00% to 3.75% APY (Annual Percentage Yield), so you’ll earn higher rates with Synchrony.
American Express National Bank Review
Synchrony CDs: Understanding Your Options
Synchrony CD Online Banking Experience
Synchrony is an online-only financial institution. You won’t be able to go to a branch, although customer support is available online or by phone. Ultimately, if you prefer a traditional banking experience, consider other options. But if you’re open to having an online-only account, Synchrony is a strong choice.
Synchrony CD Minimum Opening Deposit and Fees
The amount of money you’ll deposit in a CD also impacts your interest earnings. If you deposit more money, you’ll be able to earn more interest. Synchrony doesn’t charge any monthly service fees for its CDs, which is standard. Most CDs will not come with monthly service fees, which means you won’t need to consider them when calculating your overall rate of return.
Synchrony CDs’ Standard Early Withdrawal Penalties
Synchrony CDs and Synchrony’s Bump-Up CD have early withdrawal penalties. You’ll only have to pay a penalty if you take out money before your CD matures. If you keep money in the CD for the entire term, you won’t have to pay any fees.
Here are Synchrony’s early withdrawal penalties:
- 90 days interest penalty for a term of 12 months or less
- 180 days interest penalty for a term over 12 months but under 48 months
- 365 days interest for a term of 48 months or more
Synchrony’s early withdrawal penalties are pretty standard when compared to other banks. You might find some with more lenient penalties or ones with more costly charges.
Synchrony also lets you make penalty-free interest withdrawals, which not every CD offers. This means you can withdraw the interest you made on the CD at any time without paying early withdrawal penalties on it. Just keep in mind when budgeting that you won’t be able to earn interest on the interest that you withdraw, which could impact how much money you make.
CD Laddering Strategy with Synchrony CDs
Because Synchrony Standard CDs offer strong rates across the board, you might want to use a CD ladder strategy for increased flexibility. To make a CD ladder, you take out multiple CDs with different term lengths instead of opening just one CD with your money.
For example, instead of opening a 12-month CD with $30,000, you’d instead create a CD portfolio by opening a 6-month CD, a 12-month CD, and an 18-month CD with $10,000 each. This lets you get access to some of your money earlier than you would otherwise in case of an emergency while simultaneously locking in a high interest rate for longer than you would otherwise.
What Impacts Your Synchrony CD Earnings?
The amount of interest you’ll earn on a Synchrony CD will depend on current CD rates, the term you choose, and how much money you deposit.
You might notice that Synchrony CD rates frequently go up and down over time. That’s because they’re impacted by economic conditions. We’ll explain more about that below.
Market and Economic Conditions and Synchrony CDs
CDs pay a fixed interest rate during the term. That said, the interest rate can still fluctuate, so when your account matures, the term may have a different rate. CD rates are impacted by the Federal Reserve’s decisions. Generally, when the Federal Reserve raises rates, Synchrony CD rates rise. When the Fed cuts rates, Synchrony CD rates drop. You can keep track of what will happen at the next Fed meeting to see if savings rates will change in the future.
Synchrony CD Term Lengths
The terms you choose will also impact the amount of interest you’ll earn. Right now, short-term CD rates have higher interest rates than long-term CD rates. Synchrony follows this larger trend to some extent.
Keep in mind that while short-term CDs offer a higher interest rate right now, there are still other reasons why you might prefer a long-term CD. For example, longer-term CDs allow you to earn a fixed interest rate for longer. If you don’t need access to money for a couple of years, a long-term CD might actually be beneficial because you’ll be able to earn more interest in the long run. Experts also recommend choosing a CD based on your goals.
Should You Invest in Synchrony CDs?
Synchrony Bank is an excellent option overall for CDs. It has the best CD rates for no opening deposit. We’ve also ranked it as one of the best banks in America because of its high-yield savings account.
Consider other banks if you aren’t comfortable with using an online bank or if you aren’t interested in either its high-yield savings account or its CDs. Synchrony also has unique CDs that are worth exploring, although you can find higher no-penalty CD rates at other online financial institutions.
Why You Should Trust Us: How We Reviewed Synchrony Bank CDs
To review Synchrony Bank CDs, we used our certificate of deposit methodology. We rate each account on a scale from one to five stars.
For CDs, we looked at ethics, security, the mobile app, customer support, interest rates, minimum deposits, term variety, miscellaneous features, and early withdrawal penalties.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person’s overall banking experience.
FAQs
Synchrony offers competitive CD rates for most standard terms and its bump-up CD. Its no-penalty CD isn’t as competitive as other online banks. Synchrony Bank pays 0.25% to 4.40% APY on its regular CDs, 0.25% APY on its 11-month no-penalty CD, and 3.00% on the 24-month bump-up CD.
The best Synchrony CD rate is on its 16-month term, which pays 4.40% APY.
Synchrony often has promotional CDs that have special interest rates. These accounts may only be available for a limited time.
Synchrony CD rates can change frequently. Right now, Synchrony CD rates are still competitive, but that might change in the future since CD rates will drop as the Federal Reserve will likely continue to cut rates in 2025.
Synchrony CDs are safe and federally insured by the FDIC. Up to $250,000 per depositor, per account category is protected in Synchrony CDs.
Synchrony has two unique types of CDs: a no-penalty CD and bump-up CD. A bump-up CD lets you request a rate increase if rates rise while your account is open. No-penalty CDs allow you to make a penalty-free withdrawal while your account is open.
SoFi® Checking and Savings (Member FDIC)
Earn up to a $300 bonus with qualifying direct deposits for eligible customers through 1/31/2026. Earn up to 3.80% APY on savings balances (including Vaults) with direct deposit or qualifying deposit.