CD Review Bank: Synchrony Bank FDIC Cert: #27314 Last updated: 2026-06-27

Synchrony Bank CDs Review (2026) — Honest Take from an Independent Advisor

Quick take: Synchrony has one of the most complete online-bank CD menus: standard High Yield, Bump-Up, No-Penalty, and IRA CDs (Traditional / Roth / SEP). $0 minimum, FDIC, and APYs from 2.25% to 4.60% across the term curve. Strong fit for short-to-medium savers who want optionality. For 5+ year money — especially inside an IRA — a MYGA at ~5.50% beats Synchrony's 5-year 4.00% CD by about $18,750 on $250K, plus the tax-deferral compounding edge.

Safety Profile · Synchrony Bank (Synchrony Financial)

FDIC Insurance

$250K / depositor

Moody's (Bank)

Baa2

S&P (Bank)

BBB

Fitch (Bank)

BBB+

How to read this: Synchrony Bank deposits are insured by the FDIC up to $250,000 per depositor, per ownership category. Synchrony Bank is a single FDIC charter (Cert #27314). Synchrony Financial's credit ratings are mid-investment-grade — solid, with most of the parent's business in retail-store credit cards. For balances at or under FDIC cap, ratings don't matter — your deposit is federally backed. Above $250K, split across institutions or stack ownership categories.

Hans is independently licensed and is NOT affiliated with Synchrony Bank or Synchrony Financial. CD information below is sourced from Synchrony's public rate pages and FDIC filings as of June 2026 and rotates frequently — confirm current rates at synchronybank.com before deciding.

Current Synchrony CD Rates (June 2026)

Term	APY	$100K Earnings at Maturity	Notes
3 months	~2.25%	~$560	Lowest of the curve
6 months	~4.30%	~$2,130	—
9 months	~4.40%	~$3,275	—
1 year	~4.60%	~$4,600	Sweet spot of the curve
18 months	~4.30%	~$6,470	—
2 years	~4.15%	~$8,475	Also: Bump-Up option
3 years	~4.10%	~$12,810	—
5 years	~4.00%	~$21,665	Best MYGA comp = ~5.50%
No-Penalty CD (11mo)	~4.10%	~$3,755	Withdraw full balance after 7 days, no fee

Minimum deposit: $0. Funding: ACH, wire, check. Compounding: Daily. IRA CDs: Traditional, Roth, and SEP available at the same APYs.

What we like

FDIC backed — full $250K coverage per depositor, classic deposit insurance
$0 minimum deposit — accessible to any saver
Most complete CD menu of any online bank — High Yield, Bump-Up, No-Penalty, and IRA CDs (Traditional / Roth / SEP) all in one platform
1-year at ~4.60% — competitive with Marcus (4.75%) and Ally (4.50%), top of the short-term market
Bump-Up CD on the 2-year — useful hedge if you think rates might rise
No monthly fees, no opening fee, no maintenance fee

What we don't

5-year rate trails MYGAs by ~150 bps — Synchrony 5yr at ~4.00% vs best 5yr MYGAs at ~5.50%. On $250K that's ~$18,750 more from the MYGA over 5 years
CDs taxed annually on accrued interest — 1099-INT every year even if you don't withdraw. MYGAs are tax-deferred until withdrawal (this matters most for IRA CD shoppers who could just use a MYGA inside their IRA)
3-month rate at 2.25% is uncompetitive — far below the 6-month and 9-month tiers; clearly a "we don't want this short money" rate
Bump-Up starting rate is lower than the standard High Yield CD — the bump-up has to actually trigger to make sense
10% IRS early-withdrawal penalty stacks on top of bank penalty for IRA CDs pulled before 59½
Long-term penalty is harsh — 365 days of interest on 49+ month CDs; one of the steepest in the industry
Auto-renew at maturity — miss the 10-day grace window and you're locked at whatever the current posted rate is

Who Synchrony CDs are best for

Liquid savers with under 3-year horizon who want the broadest CD menu in one place
Anyone considering a Bump-Up or No-Penalty CD — Synchrony has both, which most banks don't
People who want a IRA CD at a competitive rate with Roth, Traditional, and SEP options under one roof
Savers with under $250K in a single ownership category who don't need physical branches
Savers not in a high tax bracket — CD interest is ordinary income, expensive at 32%+ federal

CDs vs MYGAs — when MYGAs beat them

A Multi-Year Guaranteed Annuity (MYGA) is the insurance industry's version of a CD: lock a rate for X years, get it back at maturity. Different chassis (insurance contract, not bank deposit), but the experience is nearly identical. Two big differences matter — especially for the IRA CD shoppers Synchrony attracts:

1. The rate gap. As of June 2026:

Vehicle	5-Year Rate	$250K Growth (5yr)
Synchrony 5-Year CD	~4.00%	~$54,160
Top 5-Year MYGA	~5.50%	~$72,910
MYGA advantage	+1.50%	+$18,750

2. Tax deferral. CDs throw a 1099-INT every January whether you take the interest or not — you pay tax now on money you haven't touched. MYGAs defer all gains until withdrawal, so the interest compounds on pre-tax dollars. For a buyer in the 32% federal bracket, that tax-deferral effect adds the equivalent of another ~15–20% boost to your real after-tax yield over 5 years.

For Synchrony IRA CD shoppers specifically: if you were going to lock 5-year money inside an IRA, you can buy a MYGA inside that same IRA with no tax difference (both are tax-deferred wrappers) — but at ~150 bps higher yield. That's the cleanest apples-to-apples MYGA win on this page.

Trade-offs are real: MYGAs have surrender charges (typically 7–9% in year 1 dropping to 0% at maturity), no FDIC (state-guaranty-association coverage instead — usually $250K–$300K depending on state), and a 10% IRS penalty on gains pre-59½ if non-qualified. For money you genuinely won't touch for 5+ years and are okay holding to maturity, MYGAs win on a risk-adjusted basis.

See: 5-Year MYGA — Peace of Mind Review

Bottom line

Synchrony Bank runs the most complete online-bank CD menu out there: standard, Bump-Up, No-Penalty, and a full IRA CD lineup at the same APYs. The 1-year at ~4.60% is genuinely competitive, and for any short-term cash bucket you're parking under $250K, it's a solid pick.

For 5+ year locks — and especially for 5+ year IRA locks — Synchrony loses to a MYGA. A 5-year MYGA from a top A-rated carrier currently pays ~5.50% vs Synchrony's ~4.00%, and that ~$18,750 difference on $250K compounds further once you factor in CDs being taxed annually outside of an IRA. Inside an IRA, the rate gap is the whole story — and it's a clean ~150 bps win for the MYGA. CDs and MYGAs aren't competitors — they're complements for different time horizons. Use Synchrony for liquid 1–2 year money; consider a MYGA for the bucket you genuinely won't touch for 5+ years.

About Hans Goldstein: Independent retirement income specialist. CA Life License #4163961. NPN #20602398. Reviews 30+ carriers + every major online bank. Phone: 213-414-2808. Email: hans@goldsteinco.net.

🧮 Goldstein Complexity Index — Synchrony CDs

The more complex a product, the worse it scores. Complexity is where buyers get burned. CDs are about as simple as financial products get — which is why they score so well here.

This product's score: 15/100 — Grade A+ (Extremely Simple)

Synchrony scores slightly higher than Marcus or Ally only because of the menu breadth — four CD types (High Yield, Bump-Up, No-Penalty, IRA) means you have a small selection decision to make. Each individual product is still trivially simple compared to anything with a rider or index strategy.

Score breakdown

Dimension	Score (1–10)	What this measures
Riders	0/10	CDs have no riders. Nothing to opt into, nothing to pay extra for.
Crediting strategies	2/10	One fixed APY per term. Bump-Up adds a one-time rate-increase option — still trivially simple.
Surrender complexity	4/10	Early withdrawal penalty = 90/180/365 days of simple interest depending on term. No-Penalty CD waives the fee entirely after 7 days. The 365-day penalty on 49+ month CDs is steep.
Benefit-base separation	0/10	Account value IS the value. No phantom "benefit base" lurking elsewhere.
Bonus structure	0/10	No bonus. No vesting. No recapture. The rate you see is the rate you get.

How to read this

A+/A (0–40): You can understand what you bought. CDs, MYGAs, SPIAs. Low risk of mis-selling.
B (41–60): Read the contract carefully and get a second opinion.
C (61–80): Many buyers don't fully understand what they own.
D (81–100): Demands an independent second opinion before signing.

Why this matters: Synchrony's CDs are fully audit-able — APY is the APY, and you can verify your interest credit to the penny each month. The one watch-out is the steep 365-day penalty on 49+ month CDs; if you might need the money early, the 24-month Bump-Up or 11-month No-Penalty CD are far safer choices.

Explain it like I'm 12 — how a CD actually works

A Certificate of Deposit (CD) is a piggy bank with a contract. You hand the bank money, and they promise to pay you a guaranteed interest rate for a fixed period — say, 1 year at 4.60%. In exchange, you agree not to touch the money until the year is up. If you do, the bank takes back some of the interest as a penalty.

The math:
- Put $10,000 into a Synchrony 1-year CD at 4.60% APY
- After 1 year, you have $10,460 ($460 interest)
- Withdraw early at month 6: bank keeps 90 days of interest = roughly $115 forfeited
- Hold to maturity: full $10,460 plus a 10-day grace period to decide what's next

The "fees" are non-existent:
- No monthly fee, no funding fee, no maintenance fee, no minimum
- The bank makes money by lending your deposit out at ~6–8% and paying you ~4.60%
- Your only "cost" is the opportunity cost if rates go up and you're stuck (or the Bump-Up CD trade if you bought one)

The safety net:
- FDIC insures up to $250,000 per depositor per bank — federally backed, never failed to pay
- If Synchrony Bank failed, you'd get your money back within days

Synchrony CD FAQ

What is APY and how is it different from interest rate?

APY (Annual Percentage Yield) includes compounding; interest rate does not. Synchrony quotes APY on every CD. On a 1-year CD at 4.60% APY, you earn $4,600 on $100K at maturity. APY is the right number to compare across banks.

How much does FDIC insure at Synchrony?

FDIC insures up to $250,000 per depositor, per insured bank, per ownership category. Synchrony Bank is one FDIC charter (Cert #27314). If you have more than $250K, split between banks or stack ownership categories (joint, POD, IRA) to expand coverage.

What's the early withdrawal penalty on Synchrony CDs?

90 days simple interest for terms ≤12 months, 180 days for 13–48 months, 365 days (one full year) for terms 49+ months. Synchrony's No-Penalty CD (11-month) lets you withdraw the full balance after 7 days with zero fee.

IRA CD vs taxable CD — what's the difference?

Synchrony offers IRA CDs (Traditional, Roth, and SEP) with the same APYs as taxable. Inside the IRA, no annual 1099-INT — taxes deferred until distribution. Withdrawals before 59½ trigger a 10% IRS penalty in addition to the bank's early-withdrawal fee. For 5+ year IRA money, a MYGA inside the IRA often pays more and behaves similarly.

Brokered CD vs Synchrony bank CD — which is better?

Synchrony is bank-direct: simple, FDIC, no brokerage needed, early-withdrawal penalty if you exit early. Brokered CDs (Schwab, Fidelity) trade on a secondary market — sell early at market price (could be a loss) with no penalty. Brokered sometimes has slightly higher headline rates. For most savers, Synchrony's simplicity wins.

How does the Synchrony Bump-Up CD work?

The 2-year Bump-Up CD lets you request a one-time rate increase if Synchrony raises that CD's APY during your term. The starting rate is lower than the standard High Yield CD, so the bump-up has to actually trigger for the math to work. If you expect rates to rise within 12–18 months, it's a reasonable hedge.

What happens when my Synchrony CD matures?

Synchrony gives you a 10-day grace period after maturity. During grace you can withdraw, change term, or add funds. Default behavior is auto-renew at the then-current rate for the same term. Synchrony emails the maturity notice ~30 days out — set your own calendar reminder too.

What if CD rates drop right after I lock in?

Synchrony has no rate-lock guarantee like Ally's 10-day Best Rate. If rates drop after you lock, you're fine — you keep the higher rate. If rates rise after you lock, you're stuck unless you eat the early-withdrawal penalty (or use a Bump-Up if you bought one). This is why MYGAs (5+ yr locks at higher rates with tax deferral) are worth comparing for long-term money.

📩 MYGA vs CD comparison — get my independent take before locking in

Talk to a licensed independent expert. Hans.

Before you lock a 5-year CD or IRA CD at Synchrony, see what the top-shelf MYGAs are actually paying right now and whether tax-deferral helps your situation. Independent, no carrier loyalty, no quotas.

Drop your info — within 24 hours, you'll get a side-by-side written comparison of the Synchrony CD you're considering vs. the top 3 MYGAs available to you, plus a no-pressure 15-minute call if you want one.

📞 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 available Synchrony Bank rate sheets and FDIC filings as of the date stated above. CD APYs change frequently — sometimes weekly. Always confirm current rates at synchronybank.com before opening an account. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific bank or insurance product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated annuity carriers; Hans is not a bank employee, not affiliated with Synchrony, and receives no compensation from any bank for this review. Comparisons between CDs and MYGAs reflect representative top-of-market rates as of June 2026 and are illustrative — your individual rate, tax situation, and suitability will vary. Always read the actual CD disclosure or annuity contract and consult a licensed advisor before purchasing. FDIC coverage is subject to current FDIC rules and the $250,000 per-depositor, per-bank, per-ownership-category limit. State guaranty association coverage on annuities varies by state. Tax treatment is subject to change.