In today’s digital banking landscape, online-only institutions have gained significant traction. This Synchrony Bank review takes a comprehensive look at one of the leading online banks in the United States. Known primarily for its credit card partnerships with major retailers, Synchrony Bank offers much more, including competitive high-yield savings options and other financial products. Let’s explore what this financial institution has to offer, its strengths and weaknesses, and whether it might be the right banking choice for your needs.
What is Synchrony Bank?
Synchrony Bank is a federally insured online-only bank that specializes in savings products and retail credit cards. Without physical branch locations, Synchrony operates entirely online, allowing it to offer higher interest rates on deposit accounts and fewer fees compared to traditional brick-and-mortar banks. The bank is particularly well-known for issuing store credit cards for over 120 major retailers including Amazon, Lowe’s, Sam’s Club, and many others.
Founded in 1932 as GE Capital Retail Bank, it rebranded to Synchrony Bank in 2014 when it separated from General Electric. Since then, it has established itself as a major player in the online banking and retail credit card space.
Key Features of Synchrony Bank
Find out what sets Synchrony Bank apart from other financial institutions.
Competitive Interest Rates
Convenient Mobile App
Excellent Customer Service
Fraud Protection
Variety of Financial Products
Online Account Management
Security and Fraud Protection Measures
Synchrony Bank employs robust security protocols to protect customer accounts and personal information. These include multi-factor authentication, automatic session timeouts, SSL encryption for all online transactions, and 24/7 fraud monitoring systems that flag unusual account activity.
Additional security features include:
- Account alerts for login attempts and transactions
- Secure messaging within the online banking platform
- Zero liability protection for unauthorized transactions
- Regular security updates and vulnerability testing
- Dedicated fraud investigation team
- Educational resources for customers about identifying phishing attempts
- Option to freeze cards instantly through the mobile app
Synchrony Bank : Products and Services
Synchrony Bank is a leading financial institution specializing in consumer financing. It offers a range of products aimed at helping individuals manage their finances effectively while enhancing business customer experiences. A standout offering is its high-yield savings accounts, which feature competitive interest rates that allow customers to grow their savings more quickly than traditional banks.
The online banking platform is user-friendly, enabling customers to easily access accounts, transfer funds, and manage their savings from anywhere. Additionally, Synchrony Bank provides attractive certificate of deposit (CD) options, allowing savers to earn higher interest over specific terms, catering to those looking for investment opportunities.
Synchrony Bank also stands out for its consumer financing options. The bank offers retail credit cards and special financing plans that make it easier for customers to make big purchases. Customers can take advantage of deferred interest payment plans, which can be very helpful. These financing products not only build customer loyalty, but they also boost overall customer satisfaction. In the end, Synchrony Bank provides a wide range of products that support the financial goals of both individual customers and businesses.
Interest Rates and Financial Products
Competitive APY Across Accounts
Credit Card Partnerships
Synchrony Bank High Yield Savings
One of Synchrony’s flagship products is its High Yield Savings Account, which consistently offers competitive annual percentage yield (APY) rates well above the national average. As of this writing, the account features:
- No minimum balance requirements
- No monthly fees
- Competitive interest rates that compound daily
- Easy online and mobile access
- FDIC insurance up to $250,000 per depositor
The high-yield savings account is particularly attractive for those looking to grow their emergency funds or save for short to medium-term goals without worrying about fees eating into their balance.
Money Market Account
Synchrony’s Money Market Account combines elements of both savings and checking accounts, offering:
- Competitive interest rates (though typically slightly lower than their High Yield Savings)
- Check-writing privileges
- ATM card access
- No minimum balance requirements after account opening
- No monthly maintenance fees
This account provides more flexibility than the standard savings account while still offering an interest rate higher than most traditional banks.
Certificates of Deposit (CDs)
Synchrony offers a range of CD terms from 3 months to 5 years with:
- Competitive interest rates that often rank among the highest available
- Multiple-term options to match various financial goals
- $2,000 minimum deposit requirement
- FDIC insurance coverage
- Early withdrawal penalties that vary by term length
For those with specific time horizons for their savings goals, Synchrony’s CDs provide guaranteed returns at fixed rates.
IRA CDs and IRA Money Market Accounts
For retirement savers, Synchrony offers tax-advantaged options:
- Traditional, Roth, and SEP IRA options
- Same competitive rates as regular CDs and money market accounts
- Long-term savings potential with tax benefits
- $250 minimum opening deposit for IRA Money Market accounts
- $2,000 minimum for IRA CDs
Credit Cards
Perhaps Synchrony’s most widely known service is its vast portfolio of retail credit cards. The bank partners with more than 120 retailers to offer both store-only and co-branded credit cards, including:
- Amazon Store Card
- Lowe’s Advantage Card
- PayPal Cashback Mastercard
- Sam’s Club Mastercard
- Care Credit (for healthcare expenses)
These cards typically offer special financing options, rewards programs specific to the retailer, and occasional promotional offers.
Synchrony Bank Pros and Cons
Pros
Competitive Interest Rates
Synchrony consistently offers above-average annual percentage yields (APYs) on its savings products. Its high-yield savings account, money market account, and CDs frequently rank among the top rates nationwide, making it an excellent choice for savers focused on maximizing returns.
Minimal Fees
Unlike many traditional banks that charge monthly maintenance fees, minimum balance fees, and various service charges, Synchrony keeps fees to a minimum:
- No monthly fees on savings or money market accounts
- No minimum balance requirements to maintain accounts
- Free ATM withdrawals (though other banks may charge their own fees)
- Free standard withdrawals and transfers
No Minimum Balance Requirements (for Most Products)
Most of Synchrony’s accounts can be opened and maintained without minimum balance requirements. The exception is CDs, which require a $2,000 minimum deposit.
Robust Digital Banking Experience
Synchrony’s online banking platform and mobile app provide:
- 24/7 account access
- Mobile check deposit
- Account management tools
- Secure messaging with customer service
- Bill pay features
ATM Fee Reimbursements
Synchrony reimburses ATM fees up to $5 per statement cycle for its savings and money market account holders, providing more convenient access to funds.
Cons
No Physical Branches
As an online-only bank, Synchrony does not have physical locations where customers can conduct transactions in person or speak face-to-face with representatives. This can be a significant drawback for those who prefer in-person banking.
No Checking Account Options
Unlike many online banks that offer checking accounts, Synchrony focuses primarily on savings products. The lack of a checking account means customers need to maintain accounts with other institutions for everyday banking needs.
Limited Cash Deposit Options
Without physical branches, depositing cash into Synchrony accounts can be challenging. Customers typically need to deposit cash elsewhere and then transfer funds electronically.
Early Withdrawal Penalties
Like most banks, Synchrony charges early withdrawal penalties on CDs. These penalties can be significant:
- For terms of 12 months or less: 90 days of simple interest
- For terms over 12 months: 180 days of simple interest
Variable Customer Service Quality
Based on customer reviews, Synchrony’s customer support can be inconsistent. While some customers report positive experiences, others cite long wait times and difficulty resolving complex issues.
Potential Drawbacks
No Checking Accounts
Synchrony does not offer any checking accounts, which might be a dealbreaker for those who want to keep all their banking in one place.
Limited Customer Support Options
While customer support is available, some users have expressed dissatisfaction with the level of service. Support is offered via phone and secure message, but there is no in-person assistance or 24/7 live chat.
No Physical Branches
As an online-only bank, you won’t have access to in-person services. For those who prefer face-to-face interactions, this could be a limitation.
ATM Access Limitations
Though ATM access is available, Synchrony does not reimburse all ATM fees. It only offers up to $5 per statement cycle for out-of-network ATM reimbursements.
Digital Banking Experience
Online Banking Platform
Synchrony’s online banking portal offers a clean, straightforward interface that allows customers to:
- View account balances and transaction history
- Transfer funds between Synchrony accounts or external accounts
- Configure alerts for account activities
- Update personal information
- Access tax documents and statements
- Message customer service
Mobile App
The Synchrony Bank mobile app provides similar functionality to the online portal with added convenience:
- Mobile check deposit capability
- Fingerprint or facial recognition login (device-dependent)
- Account alerts and notifications
- ATM Locator
The app receives mixed reviews, with some users praising its simplicity while others note occasional technical issues.
Customer Service
Synchrony offers several customer support channels:
- Phone support (7 days a week)
- Live chat through the website
- Secure messaging within online banking
- Email support
Customer service hours are more extensive than many online banks, with representatives available on weekends and evenings.
Fees and Minimum Balance Requirements:
Synchrony Bank stands out for its consumer-friendly fee structure, charging no monthly maintenance fees on its savings and money market accounts. Unlike many traditional banks, Synchrony imposes no minimum balance requirements to maintain accounts after opening, eliminating the stress of maintaining specific balances to avoid penalties. While their CDs require a $2,000 minimum initial deposit, this amount remains competitive among online banks. ATM fee reimbursements (up to $5 monthly) further enhance value, though wire transfer fees ($25 outgoing) and excessive withdrawal fees (after six monthly transactions) still apply to certain activities.
Security and Legitimacy
Synchrony Bank is FDIC-insured, providing customers with the same level of protection as traditional banks. The institution maintains robust security protocols to protect customer information and prevent unauthorized access.
Synchrony Bank implements several security measures to protect customer accounts:
- Multi-factor authentication
- Automatic logout after periods of inactivity
- SSL encryption for online transactions
- Account alerts for unusual activity
- Fraud monitoring
- FDIC insurance coverage up to $250,000 per depositor
Exploring Popular Credit Cards from Synchrony Bank
- Amazon Store Card offering 5% cash back for Prime members and special financing options on larger purchases
- Care Credit designed specifically for healthcare expenses with promotional financing for medical procedures and veterinary care
- PayPal Cashback Mastercard providing 2% cash back on all purchases with no annual fee
- Sam’s Club Mastercard featuring tiered cash back rewards including 5% on gas and 3% on dining
- Lowe’s Advantage Card offering 5% off eligible purchases or special financing options for home improvement projects
Customer Support and Service Quality:
1. Synchrony Bank provides customer service 7 days a week through phone support, live chat, and secure messaging with extended evening and weekend availability.
2. Representatives address account inquiries, technical issues, and transaction disputes, but service quality varies depending on problem complexity.
3. Customer feedback is mixed—some praise quick resolutions while others express frustration with automated systems and long wait times during busy periods.
4. The bank maintains specialized support teams with separate contact numbers for retail credit cards and deposit accounts.
5. Despite having no physical branches, Synchrony’s comprehensive digital support channels generally meet most customers’ routine banking needs.
Compares - Other Online Banks
Synchrony vs. Traditional Banks
Compared to brick-and-mortar banks like Chase, Bank of America, or Wells Fargo, Synchrony typically offers:
- Higher interest rates on savings products
- Fewer fees
- Lower or no minimum balance requirements
- More limited product selection (no checking accounts, mortgage loans, etc.)
- Less personal service without physical branches
Synchrony vs. Other Online Banks
When compared to other popular online banks like Ally, Marcus by Goldman Sachs, or Capital One 360, Synchrony:
- Offers similarly competitive rates on savings products
- Provides fewer everyday banking products (notably lacking checking accounts)
- Excels in its breadth of CD term options
- Stands out for its extensive credit card partnerships
- Provides comparable digital banking experiences
Synchrony Bank Reviews and Real-World Feedback
One common theme is satisfaction with the interest rates, though some express frustration with the mobile app and customer support delays. This feedback reflects the trade-offs of banking with a digital-first institution.
Synchrony Bank review has covered the institution’s primary offerings, strengths, weaknesses, and suitability for various banking needs. For savers focused on earning competitive interest rates with minimal fees, Synchrony provides compelling options, particularly with its high-yield savings account and certificate of deposit selections. The bank’s extensive credit card partnerships also make it a familiar name to many shoppers.
However, the online-only nature of Synchrony Bank and its limited product range means it’s best suited as a complementary banking option rather than a complete banking solution for most customers. Without checking accounts and physical branches, customers will likely need relationships with other financial institutions to fulfill all their banking needs.
To sum up this Synchrony Bank review, it’s clear that the bank is a solid choice for savers seeking high returns and low fees. With its standout Synchrony Bank high yield savings account and a variety of CDs and money market accounts, it offers excellent options for those looking to grow their money online. The trade-off comes in the form of limited services such as the absence of checking accounts and a relatively basic mobile app.
Still, if you prioritize strong APYs, no monthly fees, and don’t need daily banking features like checking, Synchrony Bank delivers considerable value. It’s a legitimate, well-backed institution offering competitive financial products in the online banking space. Whether you’re building an emergency fund, saving for a large purchase, or looking for a retirement savings vehicle, Synchrony Bank deserves a spot on your shortlist.
FAQs (Frequently Asked Questions)
Synchrony Bank is an online-only bank offering high-yield savings, CDs, money market accounts, and retail credit cards. It’s a subsidiary of Synchrony Financial.
Yes, the HSN credit card has changed from Synchrony Bank. In 2020, Capital One took over as the issuing bank for the HSN credit card from Synchrony Bank. This transition affected existing cardholders, who received new Capital One HSN credit cards to replace their Synchrony-issued cards. Any customers who still have questions about this transition should contact Capital One directly for the most current information.
Yes, Synchrony Bank is a legitimate and established financial institution. It is:
- FDIC insured (FDIC #27314) up to $250,000 per depositor
- Regulated by federal banking authorities, including the Office of the Comptroller of the Currency (OCC)
- A publicly traded company on the New York Stock Exchange
- One of the largest providers of private-label credit cards in the United States
Despite occasional customer complaints (common to most large financial institutions), Synchrony Bank is a legitimate and financially stable banking option.
For general banking questions and account services, customers can reach Synchrony Bank at 1-866-226-5638. The customer service team is available:
- Monday through Friday: 8:00 AM to 10:00 PM ET
- Saturday and Sunday: 8:00 AM to 5:00 PM ET
For specific credit card inquiries, the phone number varies depending on the retailer’s partnership. These numbers can typically be found on the back of the credit card or the specific retailer’s credit card page.
Synchrony Bank is owned by Synchrony Financial (NYSE: SYF), a publicly traded financial services company. Synchrony Financial was formerly part of General Electric (GE) as GE Capital Retail Bank but became an independent company following an IPO in 2014. Today, it operates as a standalone financial institution with its own board of directors and leadership team.
No, Synchrony Bank is not part of PayPal. However, there is a significant partnership between the two companies. Synchrony Bank is the issuer of PayPal’s credit products, including the PayPal Cashback Mastercard and the PayPal Credit service. This means that when customers apply for PayPal credit products, they’re actually entering into an agreement with Synchrony Bank, which handles the underwriting, account management, and credit decisions.
Yes, Synchrony Bank ensures the security of your funds with advanced fraud protection measures.
Synchrony Bank offers a variety of financial products including savings accounts, CDs, and credit cards.
Yes, Synchrony Bank provides a user-friendly online platform for managing your accounts and finances.
Yes, you can access your Synchrony Bank account internationally through their online banking platform.
Synchrony Bank stands out for its competitive interest rates, excellent customer service, and variety of financial products.
Ideal for:
Rate-conscious savers: Those primarily interested in earning the highest possible interest on their savings will appreciate Synchrony’s consistently competitive rates.
Fee-averse customers: People who want to avoid monthly maintenance fees and minimum balance requirements will find Synchrony’s fee structure appealing.
CD ladder builders: With multiple term options and competitive rates, Synchrony is excellent for creating CD ladders.
Retail credit card users: Customers who frequently shop at retailers partnered with Synchrony can benefit from their store card offerings.
Self-service bankers: Those comfortable with online banking and who rarely need branch services will adapt well to Synchrony’s digital-first approach.
May not be ideal for:
- Cash-heavy customers: Without physical branches, depositing cash is difficult with Synchrony.
- Daily transaction users: The lack of checking accounts makes Synchrony unsuitable as a primary bank for everyday transactions.
- In-person service seekers: Customers who value face-to-face interactions will be better served by traditional banks.
- One-stop financial shop customers: Those looking for a full suite of financial products (checking, loans, investments) under one roof will find Synchrony’s offerings too limited.
