Synchrony Bank IRA Review 2020

Synchrony Bank (GE Capital Retail Bank) IRA review: Roth IRA, Traditional IRA, rollover, CD IRAs, SEP IRA. IRA fees, rates, APY/APR, promotion offer for 2020. Is Synchrony Bank IRA good and safe way to invest?

Synchrony (GE Capital Retail Bank) IRA Account

GE Capital Retail Bank, not to be confused with GE Capital Bank, (which is probably the reason for the recent name change to Synchrony Bank) is a good choice for IRA accounts. Their Optimizer rates outpace anything being offered by conventional brick and mortar establishments such as Wells Fargo or Bank of America, and are very competitive when compared to other “so-called” online banks such as Ally. In addition, their customer service associates, particularly in the IRA department, are extremely knowledgeable, courteous and helpful when explaining all of the options.

Synchrony Bank Interest Rates

When asked how they can offer such high interest rates, the explanation was simple – they have a low overhead since most of their business is done online or via phone through call centers across the country. However, unlike other online banks, they actually have one brick and mortar location in Bridgewater, New Jersey. This fact tends to favor those investors who are uneasy about online only institutions.

Synchrony Bank IRA Options

- An IRA Money Market Account – which requires a minimum deposit of $250 and currently earns 0.85% APY

- An IRA CD (Roth or Traditional) – which requires a minimum deposit of $2,000 which can earn up to 2.25% APY for 60 months

- A 15-month IRA CD – which earns 1.15% on a minimum balance of $2,000 or more

For those looking to make their annual maximum contribution, for tax purposes, these IRA CD rates guarantee a fixed rate of return from 0.30% for deposits up to $14,999 for 3 months to 2.30% for deposits over $100,000 for 60 months. Currently, the maximum contribution for IRA deposits with respect to eligibility for a tax deduction is $5,500 for those under 50 years of age and $6,500 for those over age 50.

Terms $2,000-
3 MONTH 0.30% 0.35% 0.35% 0.35% 0.35%
6 MONTH 0.45% 0.55% 0.65% 0.65% 0.65%
9 MONTH 0.50% 0.65% 0.70% 0.70% 0.70%
12 MONTH 1.05% 1.05% 1.10% 1.10% 1.10%
18 MONTH 0.95% 1.00% 1.05% 1.05% 1.05%
24 MONTH 1.10% 1.10% 1.15% 1.20% 1.20%
36 MONTH 1.25% 1.25% 1.30% 1.35% 1.35%
48 MONTH 1.70% 1.70% 1.75% 1.75% 1.75%
60 MONTH 2.25% 2.25% 2.30% 2.30% 2.30%

Comparison With Traditional Banks

With traditional banks offering little in the way of acceptable rates (0.01% to 0.15%) for IRA depositors and generally promoting brokerage accounts for IRA contributions, Synchrony Bank offers a solid investment option for the majority of investors who are wary of the stock market despite recent positive gains. Unlike, brokerage options such as Vanguard or Merrill Edge (offered by Bank of America) there are never any fees for IRA depositors.

By comparison, their minimum rate of 0.30% is twice the maximum rate of 0.15% being promoted by the traditional banking institutions. Their closest competitor, Ally Bank, despite offering 0.87% for an online Savings IRA, has a maximum rate of 1.60% for 60 months on an IRA CD. Depending upon future goals for retirement and the long term or short term objectives of the individual, Synchrony Bank, is able to provide a safe, comfortable rate of return that far outpaces their competitors. Of course, all funds are guaranteed up to $250,000 of FDIC insurance per depositor, per insured bank, for each ownership category.

Synchrony Bank has received the® Top Tier award for consistently offering annual percentage yields (APYs) that were among the highest reported in the 100 Highest Yields®.

Customer Service is the Key

Synchrony Bank, provides some of the best customer service associates in the business particularly with respect to IRA accounts. They are willing to spend as much time as necessary to explain all of the options. Of course, they make it a point to inform new customers that they do not provide tax advice, and advise them to consult a tax advisor for actual advantages and any potential tax implications before establishing or making contributions to an IRA.

For customers who may be looking to move IRA accounts from their current location, upon maturity of course, they make the process seamless. By utilizing either the online application, or contacting a representative on the phone, they set up the timing of your IRA CD rollover into a new Optimizer account. All transactions are done electronically and the customer is notified when the transaction is completed. They can also arrange to have your current annual contribution coincide with the rollover date so there is no need for additional accounts.

Their customer service representatives make sure that the new account is established in a timely manner and confirm with the customer that it can be funded within 45 days with the IRA disbursement (which must be reinvested within 2 months to avoid penalty). Additionally, multiple IRA’s that may be maturing at the same time can be combined into one account.

The Facts

Synchrony Bank had $609.09 million in non-current loans and owned real-estate with $8 billion in equity and loan loss allowances on hand to cover it. (A+ rating) In the past year, Synchrony Bank has increased its total deposits by $5.55 billion, resulting in 24.71% growth for the year.


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