Synchrony Bank is offering 4.30% APY on a 16-month certificate of deposit as of August 12, 2026, marking the highest rate available for that term across the market. The offer arrives as deposit yields continue to decline across financial institutions, yet short-term CDs between six and 12 months still deliver between 4% and 4.5% APY.
Yield curve dynamics currently favor shorter commitment periods over traditional long-term accounts. The highest average yield now belongs to 12-month CDs, reflecting expectations of lower future interest rates. Online banks and credit unions consistently outpace brick-and-mortar competitors because lower overhead costs allow them to pass more return to depositors.
Major banks ranked by FDIC data are offering APYs up to 4.25% as of August 11, 2026, with terms running from four to 15 months. That ceiling sits 5 basis points below the Synchrony 16-month offer, illustrating the premium that online-only institutions can command.
The national average for a 1-year CD stood at 1.65% APY as of July 18, 2026, according to FDIC data published by CalcFi. Top-tier 1-year CDs cluster around 4.10% to 4.20% APY, with Bread Financial advertising 4.20% and Synchrony Bank at 4.15%. E*TRADE leads the 12-month segment at 4.40% APY with a $500 minimum deposit.