How do you open a CD account with Synchrony Bank?


Quick Answer

To open a certificate of deposit at Synchrony Bank, the account holder first needs to open a bank account, according to Synchrony Bank. Once that is done, he goes to the CD page at SynchronyBank.com and chooses a savings option before depositing money into the CD.

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Full Answer

Interest rates for CDs vary by the terms, according to Synchrony Bank. Terms go from three to 60 months with annual percentage yield between 0.27 percent and 2.25 percent. The amount of money deposited in the CD also determines the interest rate. For example, as of July 2015, a six-month term for a deposit of between $2,000 and $14,999 has an interest rate of 0.41 percent, while a deposit of $25,000 to $49,999 for a six-month term is 0.6 percent. All CDs at Synchrony Bank are FDIC insured.

A CD is a savings option that financial institutions offer, says Nerd Wallet. With a regular savings account, withdrawing money from that account does not include a penalty. However, with a CD, early withdrawal of the money leads to penalty fees, also known as time deposits. The account holder should keep the money in the account until the end of the term. The benefit to a CD over a savings account is that a CD often allows the account holder to earn more interest as long as he doesn't withdraw from it. If the account holder chooses a longer term for the CD, it earns a higher amount of interest.

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