CD Review Bank: Synchrony Bank Insurance: FDIC to $250K Last updated: 2026-06-27

Synchrony 5-Year CD Rate (2026)

Quick take: Synchrony 5-Year CD pays ~4.00% APY — middle of the online-bank pack. No minimum deposit but a heavy 365-day interest penalty for early withdrawal. A 5-year MYGA pays ~5.50%, tax-deferred; the gap is meaningful on $250K+.

Hero stats · Synchrony 5-Year CD

APY

4.00%

Insurance

FDIC

Min Deposit

$0 (no minimum)

EWP

365 days simple interest

As of

2026-06-27

Synchrony CD rates — full term ladder

The 5-year CD highlighted on this page is one of several terms Synchrony offers. Here's the full ladder so you can compare:

Term	APY
3-Month	0.25%
6-Month	4.30%
9-Month	4.40%
1-Year	4.60%
18-Month	4.30%
2-Year	4.20%
3-Year	4.10%
5-Year (this page)	4.00%

Rates as of 2026-06-27. Synchrony repricing tends to follow Fed funds moves within 1-3 weeks. Confirm current rate on the Synchrony site before funding.

Pros and cons

Pros

Competitive 5-year APY (4.00%)
No minimum deposit
Branchless, low-fee structure
Optional ATM card for direct CD interest withdrawal
Wide CD term selection (3-month through 5-year)

Cons

Heavy 365-day interest penalty on 5-Year CD (one of the harshest)
No checking account
Brand association with retail credit cards puts off some buyers
5-Year APY (4.00%) trails MYGAs (~5.50%) by ~150bps
ATM card is opt-in, not standard

How the Synchrony 5-Year CD compares to peers

At the 5-year term, here's how this CD stacks up against the most-shopped competitors:

Bank	5-Year APY
Synchrony	4.00%
Marcus	4.00%
Ally	4.00%
Discover	3.85%

For a broader view of top 5-year rates across 30+ banks and credit unions, see Best 5-Year CD Rates 2026.

When a MYGA beats this CD

A Multi-Year Guaranteed Annuity (MYGA) is the insurance-industry equivalent of a CD: lock a fixed rate for a fixed term, principal-protected. Right now at the 5-year term, A-rated carriers are paying ~5.50% — versus Synchrony's 4.00%.

Math at $250,000 over 5 years (using simple annual compounding):

Synchrony 5-Year CD @ 4.00%: $304,163 ending balance
5-year MYGA @ 5.50%: $326,740 ending balance
Difference: $22,577 in favor of the MYGA

MYGAs also defer tax on interest until withdrawal — CDs are taxed annually as ordinary income whether you touch the interest or not. The trade-off: MYGAs have a fixed surrender schedule (usually with 10%/yr free withdrawal); CDs have shorter penalty periods. For taxable retirement money you don't plan to touch, the MYGA almost always wins. See CD vs MYGA Comparison for the full breakdown.

Lock in now or wait?

Short answer: lock in at least a portion now. The 2026 rate curve is inverted at the long end — short-term CDs pay more than long-term ones, which historically signals the Fed is near a cutting cycle. If you wait for "better" rates, you risk reinvesting at lower rates 6-12 months from now.

Practical move: ladder. Put 1/3 in a 1-year CD or MYGA, 1/3 in a 3-year, and 1/3 in a 5-year. You capture today's still-elevated rates on the long end while keeping liquidity rolling.

FAQ — Synchrony 5-Year CD

What is the current Synchrony 5-Year CD rate?

As of 2026-06-27, the Synchrony Bank 5-Year CD pays approximately 4.00% APY. Rates change frequently — confirm on the Synchrony website before opening.

Is the Synchrony 5-Year CD FDIC-insured?

Yes. Synchrony Bank is FDIC-insured up to $250,000 per depositor, per ownership category. Couples with joint accounts get $500,000 of coverage.

What is the minimum deposit for the Synchrony 5-Year CD?

$0 (no minimum). If you have more to deposit, FDIC coverage caps at $250,000 per depositor per bank — split large balances across multiple institutions if needed.

What is the early withdrawal penalty?

365 days simple interest. Withdraw before maturity and the penalty is deducted from your interest (or principal if interest isn't enough). Plan your maturity date carefully.

Can I add money to my Synchrony CD after opening?

No — like most traditional CDs, this is a single-deposit account. To add funds, you must open a new CD at the rate available at that time.

What happens at maturity?

Synchrony typically gives you a 10-day grace period to withdraw, change terms, or accept auto-renewal at the current posted rate. Set a calendar reminder — auto-renewal often locks you in at a worse rate.

Should I pick a CD or a MYGA at this term?

At the 5-year term, a MYGA from an A-rated insurance carrier currently pays around 5.50% — meaningfully above this CD. MYGA interest is tax-deferred (CDs are taxed annually). Trade-off: MYGAs have surrender schedules; CDs have shorter penalty periods. For taxable retirement money, the MYGA usually wins. See CD vs MYGA Comparison.

Before you lock in — get the MYGA comparison

Hans Goldstein, independent licensed insurance producer.

If you're considering the Synchrony 5-Year CD, you should see what a 5-year MYGA from an A-rated carrier pays at the same risk level. Often it's 50-150 basis points higher, with tax deferral.

Drop your info and you'll get a written side-by-side: this CD vs. the top 3 MYGAs at the same term, with end-of-term math at your actual deposit amount. No pitch, no follow-up calls unless you ask.

Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers

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Disclosure

This review reflects publicly posted bank rates and approximate APYs as of 2026-06-27. CD rates change frequently — confirm current rates directly with Synchrony Bank before opening an account. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific banking or insurance product. Synchrony Bank is FDIC- or NCUA-insured to the limits stated; coverage is per depositor, per ownership category. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated annuity carriers; he is NOT a bank employee, broker-dealer, or registered representative, and is not paid by Synchrony Bank for this review. No compensation has been received from Synchrony Bank in connection with this content. MYGA comparisons reference rates from A-rated carriers as of the date stated; carrier rates change monthly. Always read the actual CD disclosure or annuity contract before purchasing.