Finding a high-interest savings account is hard enough, but finding one that is affordable and offers great features on top of that is uncommon. In GOBankingRates’ Best Banks 2017 study, Synchrony Bank took the top spot in the Best Savings Account category because of its comprehensive features. Here’s why this online bank could be the answer to your savings needs in 2017.
Synchrony Bank offers some of the best savings account rates, minimal fees and easy accessibility, features that make its online savings account the best savings account you can find in the U.S.
The bank has a reputation for empowering people to really reap the benefits of opening a savings account, garnering numerous awards for its bank account rates. Last year, Synchrony also ranked among the best savings accounts offered by national and online banks in GOBankingRates’ annual Best Banks study, but in 2017, it takes the top spot.
One of the best features of Synchrony Bank’s account is its savings interest rates. Synchrony Bank’s High-Yield Savings account carries a 1.05% APY, one of the best interest rates in the study, which helped boost Synchrony to take first place among the banks in the running for best savings account.
An initial $5,000 deposit in this high-interest savings account can become $5,267 in 60 months. But bear in mind that as you earn and deposit money from a job, investment, or any other income stream, you will build on that initial deposit to an amount far higher than $5,267. If you deposit $2,500 a month on top of an initial $1,000 deposit, for example, you’ll have almost $160,000 in your high-yield savings account at the end of 60 months, not a mere $5,267.No Account Fees or Minimums
Although Incredible Bank has Synchrony beat with a 1.11% APY, which is the best savings interest rate in the category, Incredible Bank requires a minimum deposit of $2,500. By comparison, Synchrony requires no minimum deposit; no fees versus Incredible Bank’s $15 maintenance fee; and no minimum balance versus Incredible Bank’s $2,500 requirement.
Synchrony Bank’s lack of fees, service charges, minimum deposit or balance requirements are features that are not common among the accounts surveyed in GOBankingRates’ study. The overwhelming majority of the best bank accounts in the study required minimum deposits and balances, some in the thousands of dollars. Half of the top 10 savings accounts require minimum deposits.
Synchrony Bank also was a top 10 finalist in the Best Online Banks category of the GOBankingRates study. The bank offers its online savings account nationwide, so anyone in the U.S. can take advantage of this account’s favorable features, and opening an account with the bank online is easy.
Synchrony Bank also offers a loyalty program called Synchrony Bank Perks. The loyalty program requires no sign-up and begins when you open a deposit account with Synchrony, such as High Yield Savings Account, certificate of deposit, money market account, or individual retirement account. Depending on your account balance and the length of time you have been a customer, you can earn serious perks based on a tiered reward system.
For example, with a deposit less than $10,000 and less than a year of being a Synchrony customer, you get basic benefits such as ATM fee reimbursements. But when you’ve been banking for three years or more, and maintain a balance between $100,000 and $250,000, you’ll earn travel rewards and discounts such as hotel preferred pricing, theme park discounts, discounts on car rentals and exclusive hotel perks and amenities.Why You Should Open a Synchrony Account This Year
The average savings account interest rate is 0.06% APY, according to the FDIC, so with a Synchrony savings account that has a 1.05% APY, you will accrue interest more than 17 times faster than the average savings account.
Here is the bottom line when it comes to opening a Synchrony Bank savings account:
Check Out Last Year’s Winner: MySavingsDirect Offers Best Savings Account of 2016
Methodology: To compile its list of the top 100 banks, GOBankingRates surveyed the FDIC’s list of banks sorted by asset size, excluding non-active institutions, investment banks and any institutions that require customers to use investment services to access commercial bank accounts. This list of 100 banks includes 72 brick-and-mortar banks and 28 online-only banks according to the GOBankingRates database. No asset threshold was consulted for online-only banks.
Criteria for ranking: To determine its Best Savings Accounts category ranking, GOBankingRates scored each bank’s basic, personal savings account from most to least favorable on the following factors: (1) minimum deposit to open the savings account, (2) monthly maintenance fee, (3) minimum balance to avoid a fee and (4) annual percentage yield. APY was weighted more heavily than other ranking factors, and accounts were then ranked by overall score.
Data was compiled from and verified against the individual institutions’ websites between Oct. 11 and Oct. 26, 2016. Rates, terms and conditions are subject to change at the discretion of the individual financial institutions. APY was based on the minimum deposit required to open the account. Some interest rates might be short-term or promotional offers only, and it is possible additional terms and conditions must be met in order to obtain the interest rates listed. Rates and availability might vary by region. Please verify terms and conditions before opening an account.
GOBankingRates is a personal finance and consumer interest rate website owned by ConsumerTrack, Inc., an online marketing company serving top-tier banks, credit unions, and other financial services organizations. Some banks mentioned in the Best Banks of 2017 survey are clients of ConsumerTrack, Inc., which serves more than 100 national, local and online financial institutions. Rankings are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement.