Synchronous Bank CD Rates: How They Compare – NerdWallet

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Synchronized Bank CD Rates 2022

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24-Month Bounce: 2.75% APY

11 Months No-Penalty: 2.40% APY

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NerdWallet’s ratings are determined by our editorial team. Scoring formulas take into account a number of data points for each financial product and service.

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Synchronous Bank has the highest rates for certificates of deposit among online banks, and there is no minimum initial deposit. The bank also offers two types of special CDs – no-penalty and bump-up CDs – with solid returns.

Synchronous CD: 3 Types

Synchrony offers three types of CDs, all with a minimum deposit of $0:

High-yield CDs: These CDs have a fixed rate and are subject to early withdrawal penalties. The rates for these are among the highest on Synchrony CDs.

No-Penalty CDs: These CDs also have a fixed rate and the added benefit of no early withdrawal penalty, which means you can withdraw the full amount at no cost at any time after the first six days.

Bump-up CDs: If the bank raises the rate on newly issued bump-up CDs and you request an increase, these CDs have fixed rates with the possibility of one or more rate increases. CDs are subject to early withdrawal penalties.

Synchronous No-Penalty CD Rate

Synchronous’s no-penalty CD balances flexibility and solid returns. It’s on our list of the best no-penalty CD rates.

synchronous bump-up CD rate

Synchronous has a significant advantage of bump-up CDs during rising-rate environments. You may have the chance to receive a rate hike during the CD term, which is a rare perk that reduces the risk of missing out on higher rates in the near future.

Compare CD Rates: Synchronous vs. Marcus vs. Ally

If you’re considering high-yield, no-penalty and bump-up CDs, there are three online banks that have them all: Ally Bank, Marcus by Goldman Sachs, and Synchronous Bank. See how they differ based on each of the three CDs:

Synchronous’s 2-Year Bump-Up CD

Ally’s 2-Year Increase Your Rate CD

Marcus’s 20 Month Rate Bump CD

More information about synchronous CD

None, which is common for CDs.

90 days (3 months) interest for CD terms of 1 year or less.

180 days (6 months) interest for CD terms from 13 months to 3 years.

1 year interest for CD terms of 4 years or more.

*If withdrawals are made early enough, the penalty may include more than the interest earned.

Daily. (This description helps you estimate what you can earn using a CD calculator or other compound interest calculator.)

10 days after the maturity date of CD. Synchronized CDs renew automatically, so this 10-day window is the only time you can withdraw without penalty (except for CDs without penalty).

Is Synchronous IRA CD Available?

What to Consider When Opening a CD

Interest rates are fixed. If you open a synchronous CD today, its annual percentage yield will remain the same until the CD expires. (The exception is a bumped-up CD.) This fixed rate enables you to lock in a CD if rates are relatively high, although there is a risk of losing if rates continue to rise. It’s hard to know exactly when CD rates will go up, but several Fed rate hikes this year have seen CD rates trending upward. Here’s a quick look at historical CD rates, including this year. Or, if you want a sample of rates each month, check out Current CD Rates.

If you withdraw early you lose interest. CDs are made to keep your money out of sight, out of mind. If you dip into a standard synchronous CD before it expires, there is an early withdrawal penalty, which means you lose some or all of the interest you earned. There is one exception: a synchronous no-penalty CD (compare with other no-penalty CDs).

More about Synchronous Bank

Synchrony is an online-only bank with a focus on two main product categories: credit cards and savings accounts. Its three types of savings accounts include a regular savings account, a money market account, and CDs. All have competitive rates, and none of them have monthly fees or minimum balance requirements. Synchrony doesn’t have a checking account, but it does offer free ATM access through a savings account or an optional ATM card linked to an MMA. The bank has a high-end mobile app, and phone support is available every day for thrift customers.

Synchronization has stellar CD rates and three types of CDs

nerdwallet rating

NerdWallet’s ratings are determined by our editorial team. Scoring formulas take into account a number of data points for each financial product and service.

read review

Synchronous Bank has a strong lineup of CDs thanks to competitive returns, no minimums and a wide variety of CD types. If you’d like to compare more options, check out our list of the best CD rates this month.

How do CDs work?

Learn more about the journey of choosing a CD, understanding rates, opening and closing rates.

To understand CD rates:

View CD rates by term and type

Compare the best rates for different CD terms and types:

View CD Rates by Bank

Here is a quick list of CD rates at traditional and online banks and brokerages:



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