Yes, Synchrony Bank is FDIC insured. It has carried Federal Deposit Insurance Corporation coverage continuously since August 1, 1988 under FDIC Certificate Number 27314, and your deposits are protected up to $250,000 per depositor, per ownership category.1FDIC. BankFind Suite – Synchrony Bank Because Synchrony operates primarily online, some depositors wonder whether the protection is the same as at a branch-based bank. It is. FDIC coverage does not vary between online and brick-and-mortar institutions.
Synchrony is headquartered in Draper, Utah and regulated by the Office of the Comptroller of the Currency. It also displays the “Member FDIC” designation across its website and account documentation, as federal regulations require of every insured institution.2eCFR. 12 CFR Part 328 – FDIC Official Signs, Advertisement of Membership
What’s Covered at Synchrony
Synchrony’s core deposit products are a high-yield savings account and certificates of deposit in various terms. Both are fully insured.3Synchrony Bank. Online Banking, High Yield Savings, and CDs Coverage extends to the principal balance plus any interest accrued through the date of a potential bank closure.4Federal Deposit Insurance Corporation. When a Bank Fails – Facts for Depositors, Creditors, and Borrowers You never apply for the insurance or pay a fee for it; it attaches automatically the moment you open an eligible account.5Federal Deposit Insurance Corporation. Deposit Insurance
The $250,000 Limit and How Balances Combine
The FDIC insures up to $250,000 per depositor, per insured bank, for each ownership category. That number is not a per-account figure. It applies to the combined total of everything you hold in one ownership category at the same bank.6Federal Deposit Insurance Corporation. Understanding Deposit Insurance
So if you hold a $150,000 savings account and a $120,000 CD at Synchrony, both in your name alone, the FDIC treats them as a single $270,000 balance. Twenty thousand dollars of that would be uninsured.
Accrued interest counts toward the cap as well. A CD sitting right at $250,000 in principal can drift above the limit as interest builds. People often miss this. The principal feels safe, and the interest quietly pushes the total past what’s protected.4Federal Deposit Insurance Corporation. When a Bank Fails – Facts for Depositors, Creditors, and Borrowers
How to Insure More Than $250,000 at Synchrony
Because the limit applies separately to each ownership category, you can multiply your coverage at a single bank by holding accounts in different categories. The FDIC recognizes several:
- Single accounts, owned by one person with no beneficiaries named. All of yours at the same bank are added together and insured up to $250,000.
- Joint accounts, owned by two or more people. Each co-owner gets $250,000 of coverage, so a two-person joint account is insured up to $500,000.
- Retirement accounts. IRAs and certain self-directed retirement accounts form their own category with a separate $250,000 limit.
- Trust accounts, insured up to $250,000 per eligible beneficiary, capped at $1,250,000 per owner when five or more beneficiaries are named.
The FDIC also recognizes employee benefit plan accounts, business accounts, and government accounts as separate categories.6Federal Deposit Insurance Corporation. Understanding Deposit Insurance
What FDIC Insurance Does Not Cover
Being an FDIC-insured bank does not mean every product sold through the bank is insured. FDIC coverage applies only to deposit accounts. The following are excluded:
- Stocks and bonds
- Mutual funds
- Annuities and life insurance policies
- Crypto assets
- Safe deposit box contents
If Synchrony or any other insured bank offers access to investment products, those products carry market risk with no FDIC backstop.7Federal Deposit Insurance Corporation. Deposit Insurance At A Glance
What Happens If Synchrony Ever Failed
Bank failures are rare, and the resolution process is designed to be nearly invisible to insured depositors. The FDIC’s goal is to make insurance payments within two business days of a bank’s closure.8Federal Deposit Insurance Corporation. Payment to Depositors
The most common outcome is a purchase and assumption transaction, in which a healthy bank takes over the failed bank’s insured deposits. Your accounts transfer to the acquiring bank and you keep access to your insured funds right away. If no acquiring bank steps in, the FDIC pays depositors directly by check, usually within a few days.8Federal Deposit Insurance Corporation. Payment to Depositors
The Deposit Insurance Fund that finances these payouts is supported by quarterly assessments charged to insured banks and backed by the full faith and credit of the United States government. No taxpayer money is used.6Federal Deposit Insurance Corporation. Understanding Deposit Insurance
How to Verify Coverage Yourself
You can confirm any bank’s FDIC status through the agency’s BankFind Suite tool at banks.data.fdic.gov. A search returns the bank’s certificate number, insurance start date, regulator, and headquarters. Synchrony’s entry shows Certificate #27314 with continuous insurance since 1988.1FDIC. BankFind Suite – Synchrony Bank If BankFind isn’t giving you a clear answer, call the FDIC at 1-877-275-3342.