Short-term savings goal? Check out Synchrony Bank’s 15-month CD

2 min read

Synchrony Bank has a great offer for consumers saving with a purpose in mind.

The online bank added a 15-month CD special in early June. If you have at least $2,000 ready to sock away, you can earn 1.55 percent APY.

In exchange for leaving your savings locked up for an extra three months, you’ll earn a higher yield than the top 12-month CD rates.

Best 12-month CD rates
Institution APY Minimum deposit
Connexus Credit Union 1.50% $5,000
First Internet Bank of Indiana 1.47% $1,000
VirtualBank 1.46% $10,000
Live Oak Bank 1.45% $2,500
EverBank 1.45% $5,000

Who should buy this CD

The Synchrony Bank CD deal could be appealing whether you’re saving for a mortgage down payment or preparing to walk down the aisle.

Its low minimum deposit requirement also makes it an alluring option for new savers. Calculate how much interest you could earn before your CD matures.

If you expect interest rates to continue rising, tying up your funds for a year and three months shouldn’t prevent you from taking advantage of other attractive offers. Still, if 15 months seems like a long time to lose access to your money, consider opening a high-yield savings account instead.

How to buy Synchrony Bank CDs

To open a Synchrony Bank CD, you can make a phone call or complete an online application. You can also print the form and mail it in. Account holders must:

  • Be at least 18 years old
  • Have a Social Security number
  • Be a U.S. citizen or permanent resident
  • Have a valid ID (such as a driver’s license or state ID card)
  • Know the addresses and birth dates of beneficiaries (there’s a maximum of four)

The bank will ask for personal information, including your date of birth and physical address. If you’ve lived in your current home for less than two years, prepare to provide your previous address.

You’ll need a bank account number and routing number if you’re planning to fund your new account through an electronic transfer. Otherwise, you can mail in a check or initiate a wire transfer (the fee is $25).

The early withdrawal penalty

Hopefully you’ll avoid tapping into your CD before it matures. The Synchrony Bank Account Agreement states that the early withdrawal penalty is 180 days simple interest on the amount withdrawn.

The agreement also says that “depending on how early in the term and how much you withdraw, the early withdrawal penalty may be greater than the interest earned on the CD and may result in a reduction of principal.”

You’ll avoid the penalty altogether if you only withdraw the interest earned and credited to your account. You can transfer your interest to an external account or have the bank mail you a check at any time.

About Synchrony Bank

Synchrony Bank is an FDIC-insured institution based in Draper, Utah. Previously, it was called GE Capital Retail Bank. It’s part of Synchrony Financial, a consumer financial services company.

The bank earned five out of five stars on Bankrate’s latest Safe & Sound Ratings, which measures the financial health of banks and credit unions throughout the United States.