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Synchrony Bank was founded in 1988. While it’s been around for some time, you might not recognize it due to a name change that occurred a few years ago.
The bank was first known as GE Capital Retail Bank; it changed names to Synchrony Bank when it went public in 2014. Also, since it only has one physical location, it is hardly a household name, but that fact doesn’t mean Synchrony doesn’t have a lot to offer.
A subsidiary of Synchrony Financial, the bank offers various banking products including savings accounts, IRAs, certificates of deposit, and money market accounts. This Synchrony Bank high yield savings account review will fill you in on everything you need to know about opening an account.
What You Get With a Hight Yield Savings Account
Synchrony Bank makes opening and holding a high yield savings account easy and affordable. Since the bank predominately operates online, it doesn’t have to charge some of the fees the bigger banks charge. In addition, it doesn’t just go after big money accounts. There isn’t a minimum balance to maintain, and you can open the savings account for $0. You do need to maintain a balance of at least $1 to earn interest on the account, though. If it dips below $1, the account will remain open, but you won’t earn any interest.
Speaking of interest, the Synchrony Bank high yield savings account currently has an APY of 1.15 percent, which is high above the national average, which is 0.12 percent APY. That is also higher than the bank’s APY for its money market accounts. While its money market accounts still yield a higher than average interest rate, it caps out at 0.85 percent.
Since the APY is 1.15 percent, you can expect to net a nice amount of money from this savings account. If you deposit $5,000 when you open your account and never put any more money in, you will earn $294 in interest in 60 months. Of course, you will make quite a bit more if you continually deposit money into the account. The bank’s website has a handy calculator you can use to determine how much you will earn based on your deposits.
Once you open your Synchrony Bank high yield savings account, you will have access to your money at any time. The bank only has one physical location, but it lets people access funds through ATMs and online withdrawals. You can also withdraw your money by phone.
Synchrony Bank doesn’t charge an ATM fee, but the ATM you use might still charge a fee. However, the bank offers a $5 monthly rebate if you are charged at an ATM. Since most ATMs won’t charge more than $2 or $3, you should not have an issue as long as you don’t make a habit of using an ATM too often.
Unlike many banks out there, Synchrony doesn’t charge fees for its high yield savings accounts. You won’t be charged for ATM withdrawals or opening your account. You won’t have to pay a monthly service fee. Online transfers are also free. If you go over the six allowed transfers for the month, you won’t be charged, although the bank might shut your account down for misuse.
Other Synchrony Bank Products
While the high yield savings account might be the most popular offering, it is far from the only account you can open with Synchrony Bank. The bank also offers individual and joint money market and certificate of deposit accounts. The rates for all of these accounts are above the national average.
Synchrony Bank’s high yield savings account is one of the best in the business. With high interest rates and low deposit requirements, earning money is easier than with most other accounts. If you don’t mind doing all of your banking online, this is a great choice for you. In fact, the online banking comes with a benefit of its own. You are more likely to keep your money in the bank where it can earn interest since you won’t go by it every day on your way to work.
Author: Jeff Gitlen