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Synchrony Bank: Online bank accounts, community focus

Money Rates Columnist.

As yet another contender in the growing field of online banks, Synchrony Bank uses a model favored by many of the top institutions in its category: leveraging its modest overhead to offer high bank rates on online savings accounts and certificates of deposit (CDs).

Chartered in Utah and fully insured by the FDIC, Synchrony Bank's online banking account options currently offer some of the most competitive terms available.

Opening a Synchrony Bank account

Online bank account types available

Synchrony Bank offers a variety of online banking account choices, including high interest savings accounts, money market accounts and certificates of deposit (CDs), which are available in a variety of terms ranging from 6 months to 5 years.

Perks rewards program for savings

The bank features savings accounts with added rewards and bonuses through its Synchrony Bank Perks program: basic, silver, gold, platinum and diamond tiers. Customers are automatically enrolled in the savings rewards program.

They can receive benefits like free money market checks, travel discounts and more, potentially saving them even more money. Members earn these rewards by maintaining a minimum balance (ranging from less than $10,000 to $250,000+ for the different tiers) or by being with the bank for a certain amount of years.

High interest, no minimum balance savings options

The bank's high yield savings account is a strong option for those who need complete liquidity. There is no minimum opening deposit and no monthly minimum balance requirement.

There are also no transaction fees, though federal law limits depositors to six withdrawals per statement cycle on this type of account.

Click here to open a Synchrony Bank savings account.

The bank also offers individual retirement account (IRA) CDs. All Synchrony Bank accounts can be opened online, and you can fund your account via a check, wire transfer or electronic transfer from an existing bank account.

Synchrony Bank CD accounts

Synchrony Bank CDs are ideal for those who don’t mind locking up their money in exchange for a higher interest rate. These CD accounts currently require a minimum opening deposit of $2,000. The bank's CD accounts are insured by the FDIC for up to $250,000 per depositor, per institution. 

Funds cannot be added to a CD outside of its grace period (between its maturity date and the time it rolls over), but new Synchrony Bank CDs can be opened anytime.

Click here to open a Synchrony Bank CD.

Synchrony Bank stays competitive among online banks

Synchrony Bank's current terms reflect a strong desire to be competitive in the marketplace of online banks, but there are countless other banks vying for supremacy in this category. Still, Synchrony Bank stands as a great option for consumers who seek the high yields and zero maintenance fees offered by today’s top online banks.

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