Synchrony Bank review: High rates, zero fees, but no checking account option

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Synchrony Bank offers high interest rates on savings products, CDs, and money market accounts, with no monthly fees or minimum balance requirements. Plus, despite being an online bank, Synchrony offers free ATM access and reimbursements, making it easier to access your money when you need to. 

Here’s a closer look at Synchrony Bank’s offerings, examining the good, the bad, and everything in between. 

About Synchrony Bank

Synchrony Bank is the online banking arm of Synchrony Financial, a financial institution with over 90 years of experience. Synchrony is the largest provider of private-label credit cards in the United States, according to its website. It partners with major brands like Amazon, Lowe's, and PayPal.

As an online bank, Synchrony doesn't have physical branches, which allows it to offer higher interest rates on savings, CDs, and money market accounts. The bank also offers a range of credit cards and IRA accounts.

One key advantage of Synchrony Bank is its commitment to minimal fees. The bank doesn't charge monthly fees, and there are no minimum balance requirements for any of its accounts. However, the lack of a checking account may be a drawback if you want a full-service bank. 

Synchrony Bank accounts

Synchrony Bank offers a variety of savings accounts designed to help you grow your money. This includes savings, certificates of deposit (CDs), and money market accounts. Let's look at each account type and what they bring to the table.

Synchrony Bank savings account

The Synchrony Bank high-yield savings account is a standout option for those looking to maximize their savings. With an impressive 4.75% APY, this account surpasses the national average of 0.45%. 

Plus, this account offers daily compounding interest, credited to your account monthly. This means your money will grow faster just by sitting in your account.

You don't need a minimum deposit to open an account, making it an excellent choice for those just starting to build their savings. There are no monthly fees to worry about, so you can save without any costs eating into your returns.

While the account doesn't offer checks, you can request a debit card for easy ATM withdrawals. Keep in mind you're limited to six withdrawals per statement cycle. Exceeding this limit may result in fees or account closure.

Using a Synchrony Bank ATM is always free. If you use an out-of-network ATM and incur a fee, Synchrony will reimburse you up to $5 per statement cycle for domestic ATMs.

It's important to note that this account doesn't allow overdrafts. If a transaction could bring your balance negative, it will be declined. Additionally, if your account balance remains at $0 for 60 days, Synchrony may close the account.

Synchrony Bank CDs

If you’re able to give up some liquidity, Synchrony Bank's CDs offer an opportunity to earn even more interest, with rates reaching as high as 5.15%. 

Synchrony offers three types of CDs: traditional CDs, bump-up CDs, and no-penalty CDs. Traditional CDs come in a variety of term lengths — between 3 and 60 months — allowing you to choose the timeline that best fits your goals.

One standout feature of Synchrony's CD offerings is the lack of minimum deposit requirements. Whether you have $1 or $10,000, you can open a CD and start earning interest. Here’s a closer look at Synchrony’s current CD rates, as of August 2024. 

Synchrony’s bump-up CD is a unique offering, available only for a 24-month term. This account allows you to "bump up" your rate if Synchrony's rates rise during your term. This can be a good choice if you expect rates to increase but don't want to miss out on earning interest.

The no-penalty CD has an 11-month term and allows you to withdraw your funds at any time without facing a penalty. This flexibility can be helpful if you think you'll need access to your money before the CD matures.

Early withdrawal penalties apply for traditional CDs and vary based on the term. Terms of 12 months or less incur a penalty of 90 days' interest, terms between 12 and 48 months incur 180 days' interest, and terms of 48 months or more incur 365 days' interest. However, you can withdraw earned interest at any time without penalty, which will reduce your overall APY.

Synchrony Bank money market account 

With a 2.25% APY, no minimum deposit, and no monthly fees, Synchrony’s money market account offers a competitive place to park your savings while maintaining some flexibility.

Like Synchrony's savings account, the money market account offers daily compounding interest credited monthly. It also has the same monthly transaction limits, so you can't treat it like a regular checking account.

However, unlike the savings account, the money market account offers some liquidity. Features include check-writing privileges and an ATM card. 

The same ATM benefits apply here as with the savings account – free in-network ATM use and up to $5 in monthly domestic ATM fee reimbursements. Similarly, overdrafts are not permitted, and accounts with a $0 balance for 60 days or more may be closed at the bank's discretion.

Other services Synchrony Bank offers

While Synchrony Bank is known for its savings accounts, CDs, and money market accounts, it also offers a few added services worth noting. These include individual retirement account (IRA) options and credit cards.

Synchrony Bank offers IRA CDs and IRA money market accounts for those looking to save for retirement. These accounts combine the tax advantages of an IRA with the competitive rates of Synchrony's deposit accounts.

With an IRA CD, you can lock in a fixed rate for a set term, providing a predictable return on your retirement savings. The IRA money market account offers more flexibility, allowing you to write checks against your balance. However, as with the regular money market account, certain transaction limits apply.

In addition to its savings products, Synchrony Bank offers credit cards. These include cash back cards, a credit-building card, and a selection of co-branded credit cards. 

Synchrony Bank fees

Synchrony Bank is largely a fee-free bank. You won’t have to pay a monthly fee to keep your account open, and you don’t need to maintain a minimum balance to avoid fees. This is an advantage over many traditional banks, which charge $10 or more monthly unless certain balance or activity requirements are met.

Synchrony Bank also doesn't charge overdraft fees. Instead, if you attempt a transaction that would overdraw your account, the transaction is simply declined. It’s worth noting that you may be charged a non-sufficient funds (NSF) fee if you don't have overdraft protection set up. The exact amount of this fee is not specified on Synchrony's website.

Plus, Synchrony doesn't charge a fee for using out-of-network ATMs and will reimburse up to $5 per statement cycle in domestic ATM fees charged by other institutions. 

Of course, no bank is completely fee-free. Synchrony does charge for certain services — here’s a quick summary of the fee structure: 

• Monthly maintenance fee: $0
• Minimum balance fee: $0
• Overdraft fee: $0 (transactions declined)
• ATM fee (out-of-network): $0
• ATM fee reimbursement: Up to $5 per statement cycle (domestic ATMs)
• Outgoing wire transfer fee: $25
• Stop payment fee: $25
• Overnight check delivery fee: $25
   

Synchrony Bank banking experience

As an online bank, Synchrony Bank's success hinges on its ability to provide a solid digital experience. From account opening to everyday transactions, customers interact with the bank primarily through its website and mobile app.

Online and mobile banking platform

Opening an account with Synchrony Bank is a fully online process. Once your account is open, you'll manage it through the online banking portal and mobile app. 

The bank's mobile app is particularly well-regarded. As of this writing, the app boasts an impressive 4.8-star rating on the App Store and a 4.7-star rating on Google Play.

The app allows you to check your balances, view transaction history, make transfers, and even deposit checks remotely. It also offers direct access to customer service, allowing you to get help with just a few taps.

While most users praise the app's design and ease of use, some have reported occasional sign-in and load times issues. However, these seem to be the exception rather than the norm.

Customer service

Despite its strong digital offerings, Synchrony Bank's customer service has received mixed reviews. The bank offers support via phone and live chat. Automated phone support is available 24/7, but live support is limited to Monday through Friday from 8 a.m. to 10 p.m. ET and weekends from 8 a.m. to 5 p.m. ET. 

Some customers report that representatives can be unhelpful, often providing generic responses and failing to resolve issues. Others have noted that customer service seems unable to make account changes and struggles to find solutions to problems.

These issues are reflected in the bank's low ratings on customer review sites. Synchrony currently has a 1.1-star rating on Trustpilot and a 1.05-star rating with the Better Business Bureau.

It's important to note that online reviews often skew negative, as satisfied customers are less likely to leave feedback. But the consistency of the complaints suggests that Synchrony Bank may have room for improvement in its customer service.

Account security

All Synchrony bank accounts are insured up to $250,000 per person, per account category via the FDIC. This means that your money is safe even in the unlikely event of a bank failure. Synchrony Bank also employs a dedicated fraud team to monitor suspicious activity. 

How Synchrony Bank stacks up 

To fully evaluate whether Synchrony Bank is right for you, it's helpful to consider how it compares to other popular online banks. In this section, we'll look at how Synchrony stacks up against three major competitors: Ally Bank and SoFi. 

Synchrony Bank vs. Ally Bank

Ally Bank is a well-established online bank known for its competitive rates, minimal fees, and strong customer service. For savings accounts, Ally currently offers 4.20% APY, which is slightly lower than Synchrony's 4.75% APY.

However, Ally pulls ahead in some other areas. For example, Ally offers a checking account option, which Synchrony does not. Ally’s customer service also really shines. The bank is known for its responsive and helpful support, available 24/7 via phone, chat, and email. 

In terms of CDs, Ally's rates are generally lower than Synchrony's. Ally's highest CD rate is currently 4.85%, compared to Synchrony's top rate of 5.15%.

Both banks have similar fee policies, with no monthly maintenance fees on any account. 

Synchrony Bank vs. SoFi

SoFi offers an all-in-one account, which combines the features of checking and savings into a single product. This can be appealing to those who value simplicity in their banking.

SoFi’s savings account currently offers 4.60% APY, close to Synchrony's 4.75% APY. Like Synchrony, SoFi has no minimum balance requirements or monthly fees.

SoFi also offers a checking account option, while Synchrony does not. SoFi's checking account offers 0.50% APY, making it a strong choice for those looking to earn interest on their checking balance. 

SoFi offers a wider range of additional products than Synchrony, including personal loans, student loan refinancing, and investment accounts. However, SoFi doesn't offer traditional CDs like Synchrony does.

Is Synchrony Bank right for you?

Deciding whether Synchrony Bank is the right fit for your financial needs depends on a few factors. While the bank's high rates and minimal fees are appealing, consider how these features align with your banking habits and goals.

Synchrony Bank may be right for you if:

Synchrony Bank is a strong contender if you're primarily looking for a place to grow your savings. The bank's high-yield savings account, money market account, and CDs offer competitive APYs to help your money grow faster. 

Synchrony Bank's lack of balance requirements and monthly fees also appeal to those just starting to build their savings. You can open an account with any amount and not worry about fees eating into your balance. The bank's fee-free approach extends to its ATM policy, which is another plus for those who value easy access to their money.

Ultimately, Synchrony Bank is a great fit for those who:

• Prioritize earning high interest rates on their savings
• Want to avoid common bank fees
• Are comfortable with online and mobile banking
• Don't mind maintaining a separate checking account elsewhere
• Have fairly simple banking needs and don't anticipate needing frequent customer support

Synchrony Bank may not be right for you if:

If you're looking for a full-service banking experience, Synchrony may not be the best fit. The bank doesn't offer a checking account, so you'll need to maintain a separate account elsewhere for your day-to-day transactions. This can be inconvenient if you prefer to keep all your banking in one place.

Synchrony's online model may also be a drawback for those who prefer in-person banking. While the bank's digital tools are robust, some customers may want to be able to visit a physical branch and talk to a banker face-to-face.

How we rated this bank

Every bank review we publish has undergone a rigorous editorial process to ensure accuracy and objectivity. Learn more about our methodology here. 

Here are some of the factors that influenced this bank’s overall score: 

The bottom line

Is Synchrony Bank a good bank? We think so. With no monthly maintenance fees, minimum deposits, or overdraft fees, Synchrony Bank is a solid contender for customers looking to do their banking online. It also provides above-average interest rates to help your savings grow faster.

That said, it's not the perfect bank. Its main weaknesses are customer service and the lack of a checking account option.

Synchrony is best suited for customers who prioritize high interest rates and low fees and are comfortable with a primarily online experience. However, those who value comprehensive banking services (including checking) or highly rated customer support might want to consider other options.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.