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We’re only days into the new year and things already look rosy for savers.

Synchrony Bank has a 1-year CD that pays 2 percent APY. Currently, it’s the best 12-month CD rate available to consumers across the U.S.

Competitors like M.Y. Safra Bank and Limelight Bank offer 1-year CDs with yields around 1.8 percent APY. Ally Bank customers buying 12-month CDs could earn 2 percent APY for a limited time during the holidays.

You’ll qualify for Synchrony Bank’s offer if you can pony up at least $2,000. If that minimum deposit seems a little high (and you’re busy paying off the debt you racked up within the past couple of months), check out other high-yield CDs.

Best 1-year CD rates
Bank APY Minimum deposit
Synchrony Bank 2.00% $2,000
USALLIANCE Financial 1.87% $500
M.Y. Safra Bank 1.85% $5,000
Limelight Bank 1.81% $1,000
TIAA Direct 1.80% $1,000

The fine print

Investing in a CD isn’t like opening a savings or money market account. Once you make your initial deposit, you won’t be able to make any withdrawals until the end of your term. Fortunately, with a 1-year CD, you won’t have to wait too long before you can use the money you tied up or reinvest it.

If you have to withdraw your savings before your 12-month CD comes due, you’ll lose 90 days of simple interest based on how much money you deposited. On the bright side, you can withdraw any interest you earn without facing a penalty.

According to Synchrony’s consumer deposit account agreement, interest compounds daily and gets credited monthly. Super savers may disappointed—you won’t earn extra interest for depositing a large amount. Do the math and find out how much interest you could end up with.

How to buy Synchrony Bank CDs

You can buy Synchrony Bank CDs online or over the phone. You can also mail in an application. Since it’s an internet bank, there are no physical branches.

Applicants interested in CDs must:

  • Be at least 18 years old.
  • Be a U.S. citizen or permanent resident.
  • Have a U.S. permanent address.

Be prepared to provide personal information, including your Social Security number and date of birth.

When you’re ready to fund your CD, you can transfer money electronically from another bank, write a personal check or initiate a wire transfer. You can also ask your current bank for a cashier’s check.

About Synchrony Bank

Synchrony Bank was founded in 1988. Currently, it’s headquartered in Draper, Utah. It’s a subsidiary of Synchrony Financial and was formerly called GE Capital Retail Bank.

Besides certificates of deposit, Synchrony offers a money market account and a high-yield savings account. IRA CDs and money market accounts are also available. In Bankrate’s review of its financial health, the bank earned five out of five stars.