Which Bank Pays Higher Interest Rates?

Which Bank Pays Higher Interest Rates?

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Synchrony and Marcus by Goldman Sachs are two online banks known for paying competitive 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 determine 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.

Synchrony vs. Marcus

  • Synchrony

  • Marcus by Goldman Sachs

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Easy access to your savings or money market account

Marcus Insights helps track your spending and monthly cash flow

Pros and cons of Synchrony

Pros and cons of Marcus

Synchrony vs. Marcus savings account comparisons

Below, we’ve compared high-yield savings accounts offered by each bank.

The Synchrony High-Yield Savings Account and Marcus by Goldman Sachs 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 a 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 by Goldman Sachs 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.

Annual Percentage Yield (APY)

1.65% APY

Minimum Deposit Amount

None

Annual Percentage Yield (APY)

1.65% APY

Minimum Deposit Amount

None

More Information

  • 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

Below we’ve compared Synchrony and Marcus’s regular CDs.

For CDs, it’ll probably be a toss-up between the two banks. Synchrony and Marcus CDs are almost identical. The two institutions pay comparable rates and charge similar early withdrawal penalties.

There are only a few situations where you might find a clear preference between the two banks.

For example, you might be more inclined to choose Marcus over Synchrony if you’re searching for no-penalty CDs. Most banks don’t have no-penalty CDs, but Marcus is unique in that it has a 7-month, 11-month, and 13-month no-penalty CD. No-penalty CDs let you withdraw money from a CD before the end of a term.

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.

Annual Percentage Yield (APY)

1.00% to 3.25% APY

Minimum Deposit Amount

None

Annual Percentage Yield (APY)

1.00% to 3.25% APY

Minimum Deposit Amount

None

More Information

  • 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
  • Interest compounded daily, paid monthly
  • FDIC insured

Annual Percentage Yield (APY)

1.30% to 3.20% APY

Minimum Deposit Amount

$500

Annual Percentage Yield (APY)

1.30% to 3.20% APY

Minimum Deposit Amount

$500

More Information

  • Terms ranging from 6 months to 6 years
  • 90 days interest early withdrawal penalty for a CD term of under 12 months, 270 days interest penalty for a CD term of 12 months to 5 years, 365 days interest penalty for a CD term of more than 5 years
  • Compounding interest to maximize your earnings
  • No monthly maintenance fees
  • FDIC insured

Synchrony vs. Marcus money market account 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.

Annual Percentage Yield (APY)

1.10% APY

Minimum Deposit Amount

$0

Annual Percentage Yield (APY)

1.10% APY

Minimum Deposit Amount

$0

More Information

  • Access your cash online, by phone, or via ATM
  • No opening deposit or minimum account balance
  • Comes with a debit card and paper checks

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.

Neither Synchrony nor Marcus has been involved in any recent public scandals.

Frequently asked questions

Is Synchrony or Marcus better?

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.

Marcus doesn’t have accounts with debit cards or ATM cards, so you’ll have to transfer money to an external bank account.

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 by Goldman Sachs High Yield Online Savings Account to the app, and it tracks things like your spending and monthly cash flow.

In terms of CDs, both banks are equally strong options and pay high interest rates.

Which bank,  Synchrony or Marcus, has the highest interest rate?

The Synchrony High-Yield Savings Account pays 1.65% APY, while the Marcus by Goldman Sachs High Yield Online Savings Account offers 1.50% APY. In regards to CDs, the two banks have similar CD rates for most terms.

Keep in mind interest rates fluctuate, and savings rates are expected to increase throughout 2022.

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