1.55% APY on a high-yield account that comes with ATM access.
Looking for a safe place to store the hard-earned cash you’ve been piling up? A savings account can efficiently maximize your saving potential. Whether you’re putting money aside for an investment or simply saving for a rainy day, a high-yield savings account can help you meet your financial goals.
Here’s a savings account option offered by the online Synchrony Bank.
- High interest savings rates that go well beyond the national average.
- Manage your account easily online.
- Peace of mind through FDIC Insurance.
Pros
- No minimum balance or monthly service fee.
- Easy withdrawals online, by phone or ATM*.
- 1.45% APY.
Cons
- Limited transactions.
- $25 wire transfers.
What is Synchrony Bank?
Synchrony Bank is an online bank that specializes in savings products, offering everything from savings and money market accounts to CDs and IRAs. They have 24-hour network security monitoring, secure firewalls to protect from unauthorized Internet traffic, and FDIC insurance up to $250,000 per depositor.
When you open an account with Synchrony, you’ll get automatically enrolled in their Synchrony Bank Perks program. Earn rewards based on both the balances you keep and the length of time you’ve been a customer.
What makes Synchrony Bank unique?
Synchrony Bank is a subsidiary of Synchrony Financial, a financial services company based in Stamford, Connecticut. It’s the largest provider of credit cards in the US and offers a specialized CareCredit card for healthcare procedures and services.
What are the benefits of a savings account with Synchrony Bank?
Synchrony Bank’s high-yield savings account offers many advantages over a traditional bank’s:
- 1.55% APY. Synchrony’s APY is higher than those offered by many of its competitors.
- No minimum daily balance. Save on as much or as little as you want with interest accrued on your full balance.
- No fees. With no associated maintenance fees, your savings can grow with ease.
- Free ATM card. Unlike other online accounts, this one comes with ATM access for easy withdrawals.
- Customer rewards. Earn access to ATM fee reimbursements, free wire transfers and other perks just for being a Synchrony customer.
What should I look out for?
Synchrony Bank’s savings account offers several ways to save, but keep in mind a few potential drawbacks.
- Limited transactions. Exceeding six transactions monthly could result in Synchrony closing your account.
- $25 wire transfers. Outgoing wire transfers are subject to a high fee.
- Limited in-person support. Synchrony has only one brick-and-mortar branch in Bridgewater, New Jersey.
What does the Internet have to say about Synchrony Bank?
Synchrony Bank has been accredited by the Better Business Bureau (BBB) since June 2006, and received an A+ rating. However, of the 800+ reviews left on the website, a whopping 94% of them were negative. The majority of complaints related to billing and collections issues with their credit cards, including: unwarranted late fees, accidentally cancelled credit cards and mistakes in interest charges.
And that’s not all. Synchrony Bank was also involved in the largest-ever credit card settlement back in 2014. When Synchrony was still known as GE Capital Retail Bank, the US Department of Justice led an investigation into GE Capital’s “deceptive and discriminatory practices.”
GE Capital allegedly sold credit card add-ons without notifying its consumers of the charges associated with these services. It was also accused of discriminating against Latino-American customers by failing to offer several promotional credit deals to customers who had asked to receive communications from the bank in Spanish.
GE Capital ultimately reached a $255 million settlement with the US DOJ, paying $169 million in relief to more than 100,000 Hispanic borrowers affected by its discriminatory practices.
How do I apply?
1. Go to Synchrony’s website and click Open an Account.
2. Click Get Started to begin your application.
3. Select High Yield Savings and indicate whether you’re interested in an Individual or Joint account. Tell Synchrony how you heard about its products from the drop-down menu. Click Next: Select Options.
4. Enter the opening deposit you’d like to make, and indicate whether you would like to receive an ATM card. Click Next: What you will need.
5. Review the required information to open an account. When you’re ready, click Next: Provide Owner Information.
6. Complete the required fields with your full name, your Social Security number, your date of birth and your email address. Click Next: Provide Address Information.
7. Provide your address. Click Next: Verify Identity.
8. Verify your identity by providing your phone number, a secret question and answer, your employment information and either your driver’s license number, military ID or state ID. To add a beneficiary, select Next: Add Beneficiaries. Or click Skip/Add Beneficiaries Later.
9. Indicate your funding method and source of funds, then provide your banking information, including your routing number, account number and account type. Click Next: Review Selections.
10. Review your account information and the Terms and Agreements, and submit your application.
What information is required to apply with Synchrony?
To open a Synchrony savings account, you’ll need to submit your:
- Full name and contact information.
- Date of birth and Social Security number.
- Driver’s license or state ID number.
- Bank account details for your external funding account.
What other savings options does Synchrony Bank offer?
In addition to its high-yield savings account, Synchrony also offers:
- A money market account. Easily access your funds with no minimum balance, no service fees, an ATM card and up to 0.85% APY.
- CDs. Terms range from three to 60 months, with APYs of 0.25% to 2.35%. A minimum deposit of $2,000 is required.
- IRAs. Sign up for Roth and traditional IRAs with terms of three to 60 months and 0.25% to 2.35% APYs. A minimum deposit of $2,000 is required.
Bottom line
Synchrony’s high-yield savings account offers a competitive 1.55% APY, no fees and access to ATM withdrawals. But transfers are limited, and you won’t get the extensive in-person support of traditional banks. Compare savings accounts to find the best one for you.