Synchrony Financial Bank Online Savings Account Review

Synchrony Financial Bank, formerly GE Capital Retail Finance which was spun off by G.E. Capital, is offering one of the best savings rates available. The current savings rate at Synchrony Bank is 1.04 percent with an APY of 1.05 percent. The national average savings account rate is much lower at 0.54 percent.

Synchrony Financial (NYSE:SYF) has been around in one form or another since 1932. Synchrony is currently the largest provider of private credit cards in the United States with over 62 million accounts.

Though issuing 62 million accounts, it is likely you have never seen a Synchrony Financial credit card because unlike American Express, Visa and MasterCard, Synchrony is an issuer of private credit cards. In lieu of Synchrony's name on these cards, they usually bear the names of national retailers, manufacturers, buying groups, industry associations, and groups.

Synchrony Bank is an internet-based bank without the higher cost structure of traditional brick-and-mortar banks. Because Synchrony and other internet banks have a lower cost structure, they are able to offer higher deposit rates. Besides offering a really good rate, Synchrony's savings accounts have the following benefits:

• Withdrawals can be made online, over the phone, or with an ATM card
• You have access to your accounts either online with their banking portal or by speaking with one of their Banking Representatives
• If you keep a $30 minimum balance in your savings account there are no monthly fees
• FDIC insures up to $250,000 per depositor for each ownership category

Like any other traditional savings account that is subjected to federal regulation, you can only make a maximum of 6 withdrawals per billing cycle. Synchrony will charge you $20 for each withdrawal over the 6 you're allowed. Make sure you don't exceed this limit because your 1.05% yield will quickly turn into a negative yield.

On a lighter note, Synchrony has teamed up with Marvel Entertainment on a series of "Save Like A Hero Videos" that include some videos including a Mall Cop, Cookout, and other videos.

Synchrony and Marvel also have a contest going on right now. You can enter their "Save Like A Hero Contest" and be featured on Marvel Entertainment's Facebook page and win $100 movie gift card. All you have to do is submit a photo of yourself in a homemade Team Captain America or Team Iron Man costume and say what makes you a savings hero. If you're interested, the full contest rules can be found at Save Like A Hero Contest Official Rules.