Synchrony Bank IRA Review 2017
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 2017. Is Synchrony Bank IRA good and safe way to invest?
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) 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-$14,999 || $15,000-$24,999 || $25,000-$49,999 || $50,000-$99,999 || $100,000+
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, GE Capital Retail Bank, 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, GE Capital Retail 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 Bankrate.com® 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
GE Capital Retail 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 60 days to avoid penalty). Additionally, multiple IRA’s that may be
maturing at the same time can be combined into one account.
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
Article was updated on 1/22/2017.
Synchrony Bank IRA
reviewed by IRA-Reviews.com on