Our experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
Synchrony and Marcus by Goldman Sachs are two online banks known for paying high interest rates on savings accounts. If you’re trying to figure out which bank is a good match for you, we’re here to help.
We’re comparing individual bank accounts, so you can see if Synchrony or Marcus is right for you. We’ll also assess the banks’ trustworthiness for you to learn more about how each bank responds to customers’ dilemmas.
Compare Today’s Savings Rates
Pros and Cons of Synchrony
Pros and Cons of Marcus
Synchrony vs. Marcus Savings Account Comparisons
Synchrony vs Marcus savings accounts
The Synchrony High Yield Savings Account and Marcus High Yield Online Savings Account share many features — a $0 minimum opening deposit, zero monthly service fees, and online-only accessibility.
The primary difference between the two accounts is how you’ll manage them.
The Synchrony High Yield Savings Account comes with an ATM card which isn’t commonly offered with most savings accounts. An ATM card might be a useful tool if you need to have access to cash quickly. Marcus doesn’t have any accounts with a debit card or ATM card. If you’d like to withdraw money from a Marcus account, you’ll have to transfer funds to an external bank account. Outgoing transfers may take at least a business day to process — it’ll depend on your external bank and when you initiated the transfer.
You may prefer the Marcus High Yield Online Savings Account if you prioritize robust savings tools, though. The Marcus mobile app has a feature called Marcus Insights. Marcus Insights can help you track your monthly cash flow and spending, so you know where your money is going.
Synchrony High Yield Savings Account
Fees
no monthly service fee
Annual Percentage Yield (APY)
4.75%
Minimum Deposit Amount
$0
- Competitive APY
- Comes with an ATM card
- No required opening deposit or minimum account balance
- No monthly service fee
- No physical branch locations
- Only reimburses up to $5 of out-of-network ATM fees per month
Product Details
- Access your cash online, by phone or via ATM
- Manage your accounts from virtually anywhere in the Synchrony app
- No minimum balance
- Interest compounded daily, paid monthly
- FDIC insured
Synchrony vs. Marcus CD Comparisons
For CDs, both banks have regular CDs, no-penalty CDs, and CDs that let you request a rate increase at one point during your term. (Synchrony calls these bump up CDs, Marcus calls them rate bump CDs.)
The best choice will depend on which type of CD you want to open, and which term length. Depending on these two choices, you could earn a higher rate with one bank over the other.
If you are specifically looking to open a CD for less than $500, you may favor Synchrony to Marcus. Synchrony lets you open a CD with $0 upfront.
Synchrony Bank CD
Annual Percentage Yield (APY)
2.25% to 5.50%
Minimum Deposit Amount
$0
- Competitive APY
- Variety of term lengths
- No minimum deposit
- No terms over 5 years
- Standard-to-high early withdrawal penalties
Insider’s Take
Synchrony Bank pays some of the best CD rates for people who don’t have much money to open an account, because it has a $0 minimum deposit. Synchrony Bank is also a good choice for people who want to work with a well-known bank, or who want to open multiple types of CDs. It has a no-penalty and bump-up CD, plus multiple terms for regular CDs — and they all pay competitive rates.
Synchrony Bank CD
Product Details
- Terms ranging from 3 months to 5 years
- Early withdrawal penalty of 90 days simple interest for terms of 12 months or less; 180 days simple interest for terms over 12 months but under 48 months; 365 days interest for terms of 48+ months
- When you’re ready to cash out your CD, you must call Synchrony
- Interest compounded daily, paid monthly
- FDIC insured
Synchrony vs. Marcus Money Market Comparisons
Money market accounts are interest-earning bank accounts that often include debit cards or checks.
Marcus only offers a high-yield savings account and CDs, not a money market account. Synchrony does have a money market account, though.
The Synchrony Money Market Account is a strong account overall. It has a low minimum opening deposit and doesn’t charge monthly service fees. The account also offers many ways to access your funds — you can use a debit card and write checks.
One downside to the account is Synchrony only reimburses $5 per month in out-of-network ATM fees. If you exceed $5 per month, you’ll have to pay charges from out-of-network ATM providers.
Synchrony Money Market Account
Fees
no monthly service fee
Annual Percentage Yield (APY)
2.25%
Minimum Deposit Amount
$0
- No opening deposit or minimum account balance
- No monthly service fee
- Comes with an ATM card and paper checks
- No physical branch locations
- Earn a higher interest rate with other online banks
- Only reimburses $5/month in out-of-network ATM fees
Product Details
- Access your cash online, by phone, or via ATM
- No opening deposit or minimum account balance
- Comes with a debit card and paper checks
Synchrony vs. Marcus: Which Bank is More Trustworthy?
We use ratings from the Better Business Bureau so you can see how a bank deals with customer issues.
Marcus received an A+ rating, and Synchrony has an A+ rating.
A good BBB rating isn’t necessarily the be-all and end-all. Talk to current customers or read online customer reviews to see if a financial institution might be a good fit.
Synchrony has been involved in a few public controversies. In 2023, Synchrony was required to pay $2.6 million in a settlement when accused of calling customers about bank accounts they didn’t have. In 2021, the bank also was required to pay $3.5 million in a settlement when accused of making unreasonable phone calls to debtors living in California.
Synchrony vs. Marcus: Frequently Asked Questions
Choosing between Synchrony and Marcus will likely depend on how you plan to use your account. If you frequently require cash or use ATMs, Synchrony might be a better option. The Synchrony High Yield Savings Account has an ATM card, and the Synchrony Money Market Account comes with a debit card and checks. You might favor Marcus over Synchrony if you don’t mind transferring money to another bank account or if you’re searching for savings tools. The Marcus mobile app has Marcus Insights. You can link your Marcus High Yield Online Savings Account to the app, and it tracks things like your spending and monthly cash flow.
Credit: Source link