Synchrony vs. Marcus Which Bank Offers Higher Interest Rates?
Synchrony vs. Marcus Which Bank Offers Higher Interest Rates?
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Synchrony vs. Marcus: Two Competitors in the High-Interest Savings Account Landscape
When it comes to online banking, Synchrony and Marcus by Goldman Sachs stand out for their competitive interest rates on savings accounts. Both banks offer $0 minimum deposits, no monthly service fees, and the convenience of online accessibility. However, there are key differences between the two that can help you decide which one is the right fit for your needs.
Managing Your Accounts: Synchrony vs. Marcus
While both Synchrony and Marcus offer high-yield savings accounts, the way you manage these accounts differs. Synchrony provides the added benefit of an ATM card, allowing you to easily access cash whenever you need it. On the other hand, Marcus does not offer any accounts with debit or ATM cards. To withdraw money from a Marcus account, you would have to transfer funds to an external bank account, which may take at least one business day to process.
If robust savings tools are a priority for you, Marcus might be the better choice. Their mobile app includes Marcus Insights, a feature that helps you track your monthly cash flow and spending, giving you a clearer picture of where your money is going.
The Winner: Synchrony
While both banks offer strong savings accounts, Synchrony edges out Marcus as our top pick. Currently, Synchrony offers a slightly higher interest rate, making it an attractive option. Additionally, Synchrony provides the convenience of an ATM card for easy access to your savings. This is particularly beneficial since neither bank offers checking accounts, meaning without an ATM card, you would have to transfer money to an external bank account to access it.
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CD Comparisons: Synchrony vs. Marcus
If you’re interested in opening a Certificate of Deposit (CD), both Synchrony and Marcus offer regular CDs, no-penalty CDs, and CDs that allow you to request a rate increase at one point during your term. When choosing between the two, it’s important to consider the type of CD you want to open and the desired term length, as the interest rates differ between the two banks.
Synchrony may be the preferred choice if you’re looking to open a CD with a low account balance. Unlike Marcus, Synchrony allows you to open a CD with $0 upfront. Additionally, Synchrony offers higher CD rates for 6-month, 9-month, 1-year, 18-month, and 5-year terms.
The Winner: Synchrony
Considering the advantages of low initial deposits and higher interest rates for various term lengths, Synchrony takes the lead in the CD category.
Money Market Comparisons: Synchrony vs. Marcus
Money market accounts are interest-earning bank accounts that often come with debit cards or checks for easy access to funds. In this category, Synchrony takes the spotlight as the winner, as Marcus does not offer a money market account.
Synchrony’s Money Market Account is an excellent choice, featuring a low minimum opening deposit and no monthly service fees. With this account, you will also have the flexibility to use a debit card and write checks for accessing your funds. However, it is important to note that Synchrony only reimburses up to $5 per month in out-of-network ATM fees.
The Winner: Synchrony
Since Marcus does not provide a money market account, Synchrony automatically takes the crown in this category. With attractive interest rates and convenient access to funds, Synchrony’s Money Market Account is worth considering.
Trustworthiness: Synchrony vs. Marcus
To gauge the trustworthiness of both banks, we turn to the Better Business Bureau (BBB) ratings. Marcus earned an impressive A+ rating, as did Synchrony. While a good BBB rating is important, it’s also recommended to seek additional insights from current customers or online reviews to determine if a financial institution aligns with your needs.
While Synchrony has been involved in some public controversies, it is important to consider that these incidents occurred in 2023 and 2021. Although these events may raise concerns, it is always a good idea to do your own research and make an informed decision based on your individual preferences.
Conclusion: Choosing Between Synchrony and Marcus
Synchrony and Marcus are formidable contenders in the world of high-interest savings accounts. While both banks offer attractive benefits, Synchrony emerges as our top pick due to its higher interest rates, the convenience of an ATM card for easy access to funds, and its extensive range of account options, including CDs and money market accounts.
By carefully weighing your priorities and considering the specific features and advantages of each bank, you can make an informed decision that aligns with your financial goals.
Frequently Asked Questions: Synchrony vs. Marcus
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Can I open a CD with a low account balance? Synchrony allows you to open a CD with $0 upfront, making it a great choice for those with a low account balance.
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Does Marcus offer a money market account? No, Marcus does not offer a money market account. Synchrony, on the other hand, provides a highly regarded Money Market Account.
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How can I assess the trustworthiness of a bank? While BBB ratings serve as one indicator of trustworthiness, it’s essential to do additional research and consider customer reviews to gain a better understanding of a bank’s reputation.
