Synchrony Bank is a digital bank owned by Synchrony Financial that issues credit cards and holds savings accounts, but has no physical branches

Synchrony Bank is a subsidiary of Synchrony Financial, a publicly traded company. It operates entirely online — there are no Synchrony Bank branches you can walk into. The bank issues credit cards (often co-branded with retailers like Amazon, Target, and Best Buy), holds savings accounts and money market accounts, and manages loans. You interact with it through their website, mobile app, or phone.

The parent company, Synchrony Financial, is one of the largest credit card issuers in the United States. Synchrony Bank itself is a federally chartered bank, which means deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account holder per account type. This is the same protection you get at any traditional bank.

Most people encounter Synchrony through a retail credit card — the kind that offers discounts or financing when you shop at a specific store. But Synchrony also operates a direct banking division where you can open a savings account or money market account without any retail connection, purely to hold cash.

Key Takeaways

  • Synchrony Bank is an online-only bank owned by Synchrony Financial, with no physical locations to visit in person.
  • Your deposits in Synchrony Bank savings and money market accounts are FDIC-insured up to $250,000, the same as at a traditional bank.
  • Most people know Synchrony through retail credit cards (Amazon, Target, Best Buy), but you can also open a standalone savings account there.
  • Synchrony Financial, the parent company, is a major credit card issuer and is publicly traded on the New York Stock Exchange under the ticker SYF.

How Synchrony makes money and why it matters to you

Synchrony makes money primarily from credit card interest and fees — when you carry a balance on a Synchrony card, they earn the interest you pay. They also earn from annual fees on some cards, late fees, and from merchants who pay Synchrony a percentage of each transaction. This business model is why Synchrony can afford to offer high interest rates on savings accounts: they use deposits to fund their lending operations.

This matters to you because it explains why Synchrony's savings rates are often higher than rates at traditional banks. A traditional bank might offer 0.01% on savings; Synchrony often offers rates closer to 4% to 5%, depending on market conditions. The tradeoff is that you have no branch access and all customer service happens by phone or online.

It also means Synchrony has a strong incentive to keep you as a customer — both for the credit card side and the deposit side. If you have a problem with a Synchrony credit card or savings account, the company wants to resolve it, because losing you costs them future interest income.

Synchrony credit cards versus Synchrony Bank savings accounts

These are two separate products, and it is important not to confuse them. A Synchrony credit card is a line of credit issued by Synchrony Bank. When you use it, you are borrowing money that you must pay back. A Synchrony Bank savings account is a place to deposit your own money and earn interest on it.

You can have a Synchrony credit card without ever opening a savings account at Synchrony Bank, and vice versa. Many people have a Synchrony credit card (often without realizing it — your Amazon card or Target card is likely issued by Synchrony) and never interact with Synchrony Bank's deposit products at all.

If you have a problem with a Synchrony credit card, you contact Synchrony Financial's customer service. If you have a problem with a Synchrony Bank savings account, you also contact Synchrony, but the department handling your issue is different. Both are part of the same company, but they operate as separate business units.

What happens if Synchrony Bank fails

Synchrony Bank is a federally chartered bank, which means it is regulated by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve. If Synchrony Bank were to fail, the FDIC would step in. Your deposits up to $250,000 would be protected and transferred to another bank, or you would receive a check from the FDIC for the full amount of your account.

This protection applies to savings accounts, money market accounts, and checking accounts at Synchrony Bank. It does not explore to credit card balances — if you owe money on a Synchrony credit card, that is a debt, not a deposit, and the FDIC does not insure debts.

In practice, large banks like Synchrony are unlikely to fail because they are subject to regular stress tests and capital requirements by federal regulators. Synchrony Financial is a large, profitable company with a long history. But the FDIC insurance exists precisely so you do not have to bet your savings on that.

How Synchrony compares to other online banks

Synchrony Bank competes with other online banks like Marcus (owned by Goldman Sachs), Ally Bank, and American Express Personal Savings. All of these offer higher interest rates than traditional banks because they have lower overhead — no branches, fewer employees in physical locations. All are FDIC-insured.

The main differences are in interest rates (which change constantly and vary by account type), customer service quality, and the features of their apps. Synchrony's rates are competitive but not always the highest. Some online banks offer slightly higher rates on savings accounts; others offer better rates on money market accounts. The difference between a 4.5% rate and a 5.0% rate matters if you have a large balance, but is negligible on small amounts.

One advantage Synchrony has is that if you already have a Synchrony credit card, you can manage both your card and your savings account in one place. One disadvantage is that Synchrony's customer service reputation is mixed — some customers report long wait times and difficulty reaching a person.

Synchrony and fraud or dispute issues

If you believe there is an unauthorized charge on a Synchrony credit card, you have the right to dispute it. Synchrony must investigate and respond within 30 days. During the investigation, the charge is typically removed from your balance temporarily. If Synchrony determines the charge was authorized, they will put it back.

If you have a problem with a Synchrony Bank savings account — for example, if money goes missing or you see a transaction you did not make — contact Synchrony when ready. Synchrony is required by federal law to investigate and respond within a set timeframe. The specifics depend on whether the issue involves a debit card, an ACH transfer, or a wire transfer.

Synchrony is also subject to the same consumer protection laws as any other bank. If you believe Synchrony has violated your rights, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), which investigates complaints against financial institutions and publishes the results publicly.

How to contact Synchrony if you have a problem

For a Synchrony credit card issue, call the number on the back of your card. For a Synchrony Bank savings account issue, go to Synchrony.com and look for the "Contact Us" link, or call 1-844-839-5914. You can also reach Synchrony through the CFPB's complaint portal if you want to file a formal complaint.

Have your account number and any relevant transaction details ready before you call. If you are disputing a charge or reporting fraud, be specific about what happened and when. Synchrony will ask for this information anyway, and having it ready speeds up the process.

If you are not satisfied with Synchrony's response, you can escalate to the CFPB or to your state's banking regulator. Most states have a department of financial regulation or similar agency that oversees banks operating in that state.

Frequently Asked Questions

Is my money safe at Synchrony Bank?

Yes, up to $250,000 per account type. Synchrony Bank is FDIC-insured, which means if the bank fails, the FDIC will transfer your deposits to another bank or send you a check. This is the same protection you get at any traditional bank.

Can I go to a Synchrony Bank branch to deposit cash?

No. Synchrony Bank has no physical branches. All deposits must be made electronically — through ACH transfer from another bank account, wire transfer, or mobile check deposit if you have a checking account with Synchrony.

Is Synchrony the same as Synchrony Financial?

No. Synchrony Bank is a subsidiary of Synchrony Financial. Synchrony Financial is the parent company that owns Synchrony Bank and also issues credit cards under various retail brands. When you have a question about a Synchrony credit card or Synchrony Bank account, you are dealing with Synchrony Financial's customer service.

What interest rate does Synchrony Bank pay on savings?

Rates change frequently and vary by account type. Synchrony typically offers rates between 4% and 5% on savings accounts, but you should check Synchrony.com for the current rate before opening an account. Rates are higher than traditional banks but may be lower than some competitors on any given day.

What do I do if I see a fraudulent transaction on my Synchrony account?

Contact Synchrony when ready by phone or through your online account. For a credit card, call the number on the back of your card. For a savings account, call 1-844-839-5914. Synchrony must investigate and respond within 30 days. Do not delay — the sooner you report it, the faster the investigation moves.