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Synchrony Bank VS State Farm Bank

Which bank is better for you?

  • Financial Rates: 5.0 Star Icon
  • Customer Service: 5.0 Star Icon
  • Variety of Terms: 5.0 Star Icon
  • Required Opening Amount: 4.0 Star Icon
4.15%APY
CD Account
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Pros:

  • Competitive interest rates on CDs
  • Good variety of CD terms available
  • Encourages CD laddering
  • Fifteen-day interest rate guarantee

Cons:

  • Fee for quickly closing the account
  • CDs have required amounts to open
  • Rate guarantee does not apply to renewal
  • Best perks for diamond customers
  • Financial Rates: 5.0 Star Icon
  • Customer Service: 5.0 Star Icon
  • Variety of Terms: 4.0 Star Icon
  • Required Opening Amount: 5.0 Star Icon
No Rate Information
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Pros:

  • Low opening required amount
  • Good variety of CD terms offered
  • Competitive interest rates on CDs
  • Can open accounts online

Cons:

  • No CDs shorter than 12-month term
  • Does not offer interest rate guarantees
  • Early withdrawal fees are high
  • Jumbo CD rates similar to regular rates
Synchrony Bank CD Review

The interest rates for Synchrony CDs are competitive. Each of the CD terms offers competitive interest rates. They are competitive with other online CD accounts. Synchrony rates are much higher than typical bank rates. They are not tiered, so any balance over $2,000 earns the competitive rate.

There are a good variety of CD terms available through Synchrony Bank. The CDs range from 3-months to 60-month terms. There is a total of nine CD terms available. Synchrony Bank also offers a Special Rate 15-month CD term.

Synchrony encourages CD laddering to earn more interest. By laddering CDs, you earn competitive rates from investing in longer-term CDs. Laddering means one long term CD matures each year. This means you can access your money more often, without paying a fee. Your money earns the best rate, but one CD matures each year in case you need to access it.

When you open a CD with Synchrony, you receive the interest rate the day you open the account. If the rates increase during the time Synchrony receives and processes your deposit you will receive the higher rate. The window for the rate to increase is 15 days for regular CDs. IRA CDs have a 60-day window. Once Synchrony determines the rate, it is locked in for the life of the CD term.

If you open a Synchrony account and quickly change your mind, there is a fee for closing the account. Customers can close their CD within six calendar days after the CD funds. The fee for withdrawing money within the first six days is seven days of interest. If you close the account after one day, you are still charged seven days of interest.

The minimum required amount to open any of the Synchrony CDs is $2,000. The deposit must be from one single transaction. With the $2,000 you can open any of the CDs offered, including the 15-month CD. You cannot open a CD with Synchrony Bank without at least $2,000.

Synchrony offers a 15-day rate guarantee for regular CDs and a 60-day rate guarantee for IRA CDs. The rate guarantees do not apply when you renew a CD after it reaches maturity. The interest rate guarantee only takes effect when you open a new CD.

Synchrony offers perks to each of its customers. To earn the best perks, you must be a Diamond member and meet those set requirements. To be a Diamond member, you must have account deposits over $250,000 and be a customer for more than five years.

Read the full Synchrony Bank review.

State Farm Bank CD Review

The set amount required to open State Farm Bank CDs is low. Each regular CD term only requires $500 to open. You must keep $500 in the CD to earn interest. State Farm Bank offers personal deposit CDs and business CDs. The required amount is the same for business and personal CDs. To open a jumbo CD requires $100,000 to open.

State Farm Bank offers a good variety of CD terms. They offer CDs specific to personal deposit and business CDs. There are six different CD term lengths for personal deposits as well as business CDs. The terms range from 12-months to 60-months. State Farm Bank also offer jumbo CDs in the same terms as regular CDs.

The interest rates for State Farm Bank CDs are competitive. They are competitive with other online CDs. All the CD terms offer rates competitive with other online CDs of the same term length. The rates of State Farm Bank CDs are much higher than typical bank interest rates. You must keep $500 in the regular CDs and $100,000 in the jumbo CDs to earn interest.

State Farm Bank CDs can be opened online. You can fund your account by linking an external account to your State Farm CDs. Once you are approved for an account, your account is completely online. You can view everything for your State Farm accounts online or on their mobile app.

State Farm Bank does not offer CD terms shorter than 12-months. They do not offer a three, six, or nine-month CD terms. The shortest terms available is the 12-month term. This term is available as a personal deposit CD as well as a business CD term.

State Farm Bank does not offer an interest rate guarantee. If you open a CD with State Farm and the interest rates increase soon after, your rate does not increase. The interest rate on the day you open your CD is the rate you receive for the entire CD term.

All State Farm Bank CDs have a fee if you withdraw money before the CD reaches maturity. The penalty for early withdrawals is high. If you withdraw money from a CD term between 12 and 23 months, the fee is 180 days of interest. For terms from 24 to 47 months, the fee is 365 days of interest. The fee is 545 days of interest if you withdraw money early from CD terms for longer than 48 months. There is also a minimum withdrawal penalty of $25 if your fee does not total more than that.

State Farm Bank offers jumbo CDs. To open a jumbo CD requires an opening balance of $100,000. The interest rates for the jumbo CDs are the same as the regular CD rates. These CDs do not offer interest rates any higher than the other CD rates. Jumbo CDs are available in personal deposit accounts and business accounts.

Read the full State Farm Bank review.

Favorite Rates

Capital One
1 Year CD 12/7/2022
APY 4.00%
Rate 4.00%
For APY $0
Monthly Fee $0.00
Checkbook Yes
Get peace of mind with fixed rates and guaranteed returns
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