Synchrony Bank Review

When it comes to online banking, most customers are technologically savvy and looking for the best deals on the market.

Everything they need to know about the competitors is available online and reputations spread like wildfire when it comes to an online business.

One prominent name when it comes to online banking is Synchrony Bank.

Synchrony Bank was established in 2014. Before, it was the GE Capital Retail Bank, who are the financial framework upon which the company is still running.

Synchrony Bank is set up as an institution that offers all financial services of deposit, credit, financing, and lending. This also includes everything from account services to mortgage, car loans, and so on.

One of their bigger sources of income has been private label credit cards that are provided to big corporations such as Amazon, Walmart, etc.

The company has a branch in Bridgewater, New Jersey and is marketed as an online bank that provides an entire suite of services through their app and website.

Types of Accounts

Synchrony High Yield Savings Account

One of the first things that you will notice when visiting the Synchrony Bank website, is that they do not have  checking accounts available.

Their flagships are high yield savings accounts as well as the CDs that they offer at competitive rates.

The high yield savings account offers one of the highest rates in the market at 1.65% APY. The rates are extremely high and way over the national averages, but that is not the only thing that the bank offers.

It does not require a minimum deposit nor does the account attract a monthly maintenance fee of any type.

Another general issue that today’s customers have is the fee of using ATMs over six times in a month. The Synchrony high yield savings account comes with a provision of zero-charge even if you transact more than 6 times.

It also offers a free convenience card to all customers, along with the banking app which is user-friendly and offers a range of options.

Synchrony Bank Money Market Accounts

While the money market accounts are not the most lucrative when it comes to interest rates, it is ranked pretty high compared to its competitors and certainly much higher than the national average. At 1.05% APY.

Moreover, there is an associated peace of mind due to the FDIC insurance that comes with every account at Synchrony Bank.

It does not require a minimum balance or any monthly service fee, so you can be assured that there won’t be random cuts from your account for specific services.

The bank also offers easy withdrawals online and by phone.

Synchrony Bank Certificates of Deposit (CDs)

When it comes to certificates of deposit (CDs), Synchrony Bank once again ranks very high on its interest rates.

The minimum deposit is $2,000 for the accounts and the term lengths vary from 3 months to 60 months.

The rates are highly competitive and have been at the top of the market for all CD accounts available. There are penalties for early termination of the CDs:

• For a term under 12 months, the penalty is worth 90 days of simple interest at the current rate.
• CDs between 12 and 48 months attract 180 days of simple interest at the current rate if terminated before the maturity period.
• For terms over 48 months, the penalty is 365 days of simple interest at current rates.

Pros

• Extremely high interest rates are certainly a huge attraction for online customers.
• No minimum balances. This works well for younger generations who are just starting off.
• Partnerships allow for access to a vast ATM network, and Synchrony Bank also allows more than 6 transactions every month. This makes the accessibility to cash much higher with this bank.
• Synchrony Bank offers free cheques for the money market accounts. Not only this, if you encounter an ATM which is out of service, you get a $5 reimbursement.
• Account linking is also very easy. You can link your Synchrony Bank account with another account to easily transfer money.
• Loyalty Perks like credit card rewards and lounge access for longtime customers are an added bonus on top of everything else.
• Account management is very easy when it comes to Synchrony, this is largely due to the application and the variety of services that are offered through the app itself.

Cons

• There is only one bank physical location in Bridgewater, New Jersey. Making it an uncomfortable situation for those who need personal help with certain facets of their accounts.
• Due to the excessive dependence on online systems, it is often difficult to move away from the bank when you want to.
• People have often complained about transactions taking much longer than expected when using a Synchrony Bank ATM card at another ATM. It might take even longer to deposit money into your account especially if it is a cheque.
• The bank does not have a checking account option, which might deter potential customers who would want to take care of all their financial requirements under one roof.

Synchrony Alternatives

There are so many online banks these days that it is hard to pick just one. Here are some of the other top online banks

• CitBank – CitBank consistently has some of the top interest rates on deposit accounts and they are constantly competing with Synchrony.
• CapitalOne360 – ING Direct was one of the first online banks in the United States. Capital One bought out ING as they exited the US market and have maintained the organization under the name CapitalOne 360.
• American Express Bank – We all think of Amex as a credit card, but they are also a banking institution. Amex Bank frequently has one of the best interest rates on savings deposits.

Synchrony Bank Review Bottom Line

Synchrony Bank is one of the best online banks, providing very competitive interest rates, offers, and basic services to all its customers.

The service provides features for its customers like ATM reimbursements and no other service charges for the account.

While high yield savings accounts and money market accounts require no minimum balance, Certificate of Deposit accounts require a minimum of $2,000.

If you are looking for a service that offers very good interest rates, Synchrony Bank is a good option.