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Reviews

Market USA Federal Credit Union Review: Checking, Savings, CD, Money Market and IRA Accounts

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Year Established1953
Total Assets$0.1B
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Market USA Federal Credit Union was originally founded in Washington, D.C. as Giant Food Department Stores Federal Credit Union. It has since merged with four other credit unions to become Market USA Federal Credit Union, headquartered in Laurel, Md.

Membership in Market USA Federal Credit Union is currently open to anyone who joins the Market USA Cares Foundation (with a minimum donation of $5), regardless of residency status. Without this donation, any resident of Maryland, Georgia, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia, and Washington D.C. is eligible for membership, as are employees of Giant Food, BILO, C&S Wholesale and other select employer groups. Prospective members join the credit union by also opening a Membership Savings account with a minimum $5 opening deposit, and are then able to open any other deposit account. Accounts are federally insured to at least $250,000 by the National Credit Union Share Insurance Fund.

In this review, we’ll give you the details on Market USA Federal Credit Union’s checking, savings, CD, IRA and money market accounts. Read on to see how they stack up to the competition and to determine if any of these accounts are right for you.

Market USA Federal Credit Union’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.05%

Savings

Market USA Federal Credit Union Savings Account

2.10%

American Express National Bank High Yield Savings Account

on American Express National Bank’s secure website

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2.41%

CD Rates

Market USA Federal Credit Union 12 Month Preferred CD

2.75%

Goldman Sachs Bank USA High-yield 12 Month CD

on Goldman Sachs Bank USA’s secure website

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2.81%

CD Rates

Market USA Federal Credit Union 36 Month Preferred CD

3.10%

Goldman Sachs Bank USA High-yield 5 Year CD

on Goldman Sachs Bank USA’s secure website

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Market USA Federal Credit Union checking account options

VIP Checking

This checking account earns you a generous APY at two different tier levels
APYMinimum Balance to Earn APY
3.01% (Platinum tier)$0.01
2.01% (Gold tier)$0.01
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on outside ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Additional out-of-network bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This account offers the opportunity to earn generous interest rates at two tier levels. In order to earn the rates above, account holders must enroll in e-statements, set up a monthly direct deposit of at least $250, and make 12 Visa debit card purchases per month at a minimum of $5 each.

In order to earn the Platinum Tier-level APY, account holders must additionally make three bill payments of at least $20 each per month through Market USA Federal Credit Union’s bill pay service.

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on Market USA Federal Credit Union’s secure website

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Regular Checking

This basic checking account offers a mediocre rate with a high balance requirement to earn it.
APYMinimum Balance to Earn APY
0.05%
$1,000
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on outside ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Additional out-of-network bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

As far as the rate is concerned, this account is far less impressive than the VIP Checking account. With a relatively high balance requirement to even earn this abysmal rate, this account might as well not even offer any interest. The only positives are the absence of deposit and balance requirements — this account also comes with a free Visa debit card, mobile check deposit and no per-check charges.

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on Market USA Federal Credit Union’s secure website

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Direct Deposit Checking

A non-interest-earning checking account meant for depositing all or part of your pay.
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on out-of-network ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Additional outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

Balances in this account don’t earn interest. You’ll get a free initial order of checks, but that’s about it.

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on Market USA Federal Credit Union’s secure website

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Fresh Start Checking

Designed to help those with past checking difficulties rebuild a positive checking history.
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on out-of-network ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Additional outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This checking account is designed to give those with a bad banking history a second chance to rebuild their checking reputation. Once this account has been open for six months, it will be upgraded to a Direct Deposit Checking account, with eligibility for mobile check deposit and Privilege Pay to cover overdrafts. One thing that sets this account apart from similar second-chance accounts at other banks is that it has no balance requirements or monthly fees. This account does, however, require that you set up a direct deposit to open it. If you don’t have access to direct deposit, you can contact the bank to see if you qualify for a Provisional Checking account.

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on Market USA Federal Credit Union’s secure website

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Minor Checking

This account offers kids and teens an opportunity to build good financial habits.
  • Minimum opening deposit: None
  • Monthly account maintenance fee: None
  • ATM fee: None on CO-OP network ATMs; $1 on out-of-network ATMs. Account holders can get eight free outside ATM transactions if they’ve set up a monthly direct deposit. Outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This free checking account is a great option for parents or guardians who want to teach financial responsibility to their kids and teenagers. Account holders under 18 must open the account with their parent or guardian as a joint owner. This account has no minimum balance requirements or monthly fees, and account holders also get a Visa Check Card in their name, though their parent or guardian must agree to be responsible for the card’s use. Account holders are also eligible for Privilege Pay, a courtesy pay service for overdrafts.

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on Market USA Federal Credit Union’s secure website

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How Market USA Federal Credit Union’s checking accounts compare

When you take a look at rates (if the account even offers them), the only true standout at Market Federal Credit Union is its VIP Checking account, which offers an APY that’s even more generous than those on our list of the best online checking accounts. The catch, however, is that you have to qualify for its two tier programs to be able to earn it.

If you can’t meet the requirements outlined above, we say consider one of the accounts on our list instead. The only other Market USA product that offers the chance to earn interest, the Regular Checking account, offers a sub-par rate with a high balance requirement to even earn it. The Fresh Start Checking account is a nice touch: it allows people the chance to rebuild a bad checking history with minimal requirements, even if it doesn’t offer the chance to earn interest.

Market USA Federal Credit Union savings account options

Membership Savings Account

This account is a requirement for anyone wishing to join the credit union.
APYMinimum Balance to Earn APY
0.05%
$0.01
0.10%
$2,000
0.15%
$5,000
0.25%
$25,000
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: Varies (see table)
  • Monthly account maintenance fee: None
  • ATM fee: None at CO-OP network ATMs. With a direct deposit of $500 per month in their Membership Savings account, members receive eight free out-of-network ATM transactions per month. Then it’s $1 per outside ATM transaction. Additional outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This is a typical savings account that’s usually a requirement to join a credit union, with a small joining fee of $5. Other than that requirement, this account offers holders the chance to earn interest at four different tier levels, though the rates aren’t very high. As with all savings accounts, this one is subject to Federal Reserve Regulation D, which limit certain transfers and withdrawals to six per month.

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on Market USA Federal Credit Union’s secure website

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Sub-Savings account

This account can be opened within the Membership Savings Account in order to save for a special occasion or purchase.
APYMinimum Balance to Earn APY
0.05%
$0.01
0.10%
$2,000
0.15%
$5,000
0.25%
$25,000
  • Minimum opening deposit: None
  • Minimum balance to earn APY: Varies (see table)
  • Monthly account maintenance fee: None
  • ATM fee: None at CO-OP network ATMs. With a direct deposit of $500 per month in their Membership Savings account, members receive eight free out-of-network ATM transactions per month. Then it’s $1 per outside ATM transaction. Additional outside bank fees may apply.
  • ATM fee refund: None
  • Overdraft fee: $29

This account, opened within your main savings account, allows you to earn the same rates while saving for a specific goal like a vacation, college fund or a down payment for a new car. This account has no balance requirements, so simply transfer funds as often as you like, in whatever amount. However, since it’s still a savings account, the Sub-Savings account is also subject to Federal Reserve Regulation D, which limits withdrawals and transfers to six per month.

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on Market USA Federal Credit Union’s secure website

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Holiday Club account

This account allows you to set aside funds specifically for the holidays.
APYMinimum Balance to Earn APY
0.15%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $29

This account allows you to easily save for the holidays by setting aside funds to be automatically transferred into the Market USA Federal Credit Union account of your choice each fall, unless you choose to simply withdraw them. Like all savings accounts, this account is subject to Federal Reserve Regulation D, which limits withdrawals and transfers to six per month.

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on Market USA Federal Credit Union’s secure website

NCUA Insured

Vacation Club account

Similar to the Holiday and Sub-Savings accounts, this account allows you to sock away cash specifically for a vacation.
APYMinimum Balance to Earn APY
0.15%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $29

This account is similar to the Holiday Club account, in that it offers the same rate and requirements, save for the one about dipping into the account’s savings in the fall. With this account, you can save for a vacation by setting up a direct deposit to transfer a set amount to the account each pay period. This account also has no monthly fee or minimum balance requirement. Since it’s a savings account, it’s subject to Federal Reserve Regulation D requirements, which limit account holders to six withdrawals and transfers per month.

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on Market USA Federal Credit Union’s secure website

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How Market USA Federal Credit Union’s savings accounts compare

While the Membership Savings account allows account holders to earn interest at four different tiers, even the highest rate doesn’t compare to the accounts on our roundup of the best online savings accounts.

Still, this account is a requirement for joining the credit union, and while it can’t hurt to have it if you’re interested in one of Market USA Federal Credit Union’s other products, we wouldn’t recommend seeking the credit union out for this account alone.

Market USA Federal Credit Union CD rates

Certificates

A variety of CD term lengths, mostly with “just okay” rates.
TermAPYMinimum Opening Deposit
3 months1.00%
$500
6 months1.50%
$500
12 months2.41%
$500
12 month Accumulator1.01%
$100
18 months2.46%
$500
20 months3.00%
$500
24 months2.65%
$500
36 months2.81%
$500
48 months2.86%
$500
60 months3.06%
$500
  • Minimum opening deposit: Varies (see above)
  • Minimum balance amount to earn APY: Varies (see above)
  • Early withdrawal penalty: If the certificate has an original maturity of 1 year or less, it’s 90 days’ dividends on the amount withdrawn. If the certificate has an original maturity of more than 1 year, it’s 180 days’ dividends on the amount.

Market USA Federal Credit Union offers a wide range of certificate terms. A nice bonus on these certificates, however, is that the rates include a 0.35% premium added to the standard rates if account holders have set up a monthly direct deposit and e-statements.

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on Market USA Federal Credit Union’s secure website

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How Market USA Federal Credit Union’s CD rates compare

Even with the additional premium added to these CD rates, none of them really compare to those on our list of the best CD rates, save for the 20-month promotional special. Even though the deposit requirements are on the lower end, we would still recommend considering one of the CDs on our list instead.

Market USA Federal Credit Union money market account option

Money Market account

A run-of-the-mill money market account with less-than-stellar rates.
APYMinimum Balance to Earn APY
0.10%
$0.01
0.35%
$2,000
0.45%
$10,000
0.80%
$50,000
  • Minimum opening deposit: $2,000
  • Minimum balance to earn APY: Varies (see table)
  • Monthly account maintenance fee: $2.50 if minimum balance of $2,000 is not maintained<
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $29

This run-of-the-mill money market rate, similar to that of the credit union’s main savings account, allows account holders to earn interest at four different tier levels, though none of the rates are particularly impressive. Its low monthly maintenance fee is easy to avoid if you maintain a minimum balance of the $2,000 required to open it. Like all savings accounts, this money market account is subject to Federal Reserve Regulation D restrictions, which limit certain transfers and withdrawals to six per month, including three made by check.

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How Market USA Federal Credit Union’s money market account compares

Even the highest tier’s rate on this account doesn’t compare to any on our list of the best money market account rates. Some of the accounts on our list offer rates more than twice as high, with minimum balance requirements that are much lower than what Market USA Federal Credit Union requires. We strongly urge you to consider one of those instead.

Market USA Federal Credit Union IRA options

IRA CD rates

IRA Certificates

The same products as the regular certificates, but opened within an IRA.
TermAPYMinimum Opening Deposit
3 months1.00%
$500
6 months1.50%
$500
12 months2.41%
$500
12 month Accumulator1.01%
$100
18 months2.46%
$500
20 months3.00%
$500
24 months2.65%
$500
36 months2.81%
$500
48 months2.86%
$500
60 months3.06%
$500
  • Minimum opening deposit: Varies (see above)
  • Minimum balance amount to earn APY: Varies (see above)
  • Early withdrawal penalty: If the certificate has an original maturity of 1 year or less, it’s 90 days’ dividends on the amount withdrawn. If the certificate has an original maturity of more than 1 year, it’s 180 days’ dividends on the amount.

These CDs are virtually the same products as the regular certificates, and come with an additional 0.35% premium added to the rates if you enroll in direct deposit or e-statements.

LEARN MORE Secured

on Market USA Federal Credit Union’s secure website

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How Market USA Federal Credit Union’s IRA CD rates compare

Just like the regular certificates, these IRA certificates just don’t stack up to the ones on our list of the best IRA CDs available. If you’re saving for retirement, take the time to do your research to make sure you’re really getting the most out of the money you’re socking away. Consider one of the CDs on our list instead.

IRA savings account

APYMinimum Balance to Earn APY
0.15%
$0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This is a standard IRA savings account, with a less-than-impressive interest rate. Like all savings accounts, this one’s subject to Federal Reserve Regulation D, which limits certain transfers and withdrawals to six per month.

How to get Market USA Federal Credit Union’s deposit accounts

To open any of Market USA Federal Credit Union’s accounts, customers must first open a Membership Savings account with a minimum deposit of $5, and $5 charity donation. Then, they can open any of its checking, savings, money market or certificate accounts online, over the phone, or in person at a branch.

The credit union’s IRAs can be opened online with the IRA Service Center, or over the phone or at a branch. You’ll need to provide information such as your address, phone, driver’s license and Social Security number.

LEARN MORE Secured

on Market USA Federal Credit Union’s secure website

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Overall review of Market USA Federal Credit Union’s banking products

We’ll be honest with you: the only real standout product at Market USA Federal Credit Union is its VIP Checking account, and that’s only if you qualify for the rewards tiers to earn its generous rates. Otherwise, none of its personal banking products have rates that stack up to or beat out the competition, even if they do have minimal monthly fees and balance requirements going for them.

These accounts aren’t the worst out there, but they’re not the best, either. Take the time to do your research to be able to reap the most benefits from the funds you’re putting away.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Emilia Benton
Emilia Benton |

Emilia Benton is a writer at MagnifyMoney. You can email Emilia here

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Best of, Reviews

The Top 7 Second Chance Bank Accounts

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Some banks don’t like giving second chances to customers who have less-than-stellar financial histories, especially since it could expose them to expensive risks. A record of bounced checks or debit card overdrafts could easily lock you out of the conveniences of modern banking.

Fortunately, banks also like making money, and some offer special “second chance” accounts that minimize their risk while allowing consumers to stay in the banking system. A second chance bank account gives customers with troubled records a fresh opportunity to demonstrate they can bank responsibly.

When it comes to a second chance account, fees are an unfortunate reality. But some accounts offer customers a better deal than others, and we’ve researched our database to find the second chance accounts with the most reasonable fee structures, while also factoring in whether they provide online and mobile banking, and how accessible accounts are throughout the country.

Second chance account basics

With a second chance bank account, customers shut out of traditional bank accounts get the opportunity to win their way back into a bank’s good graces. Similar to credit bureaus, financial services company ChexSystems maintains records of consumers’ banking histories. Bounced checks, overdrawn accounts or instances of fraud can all end up on your ChexSystems record; if you accumulate enough black marks on ChexSystems, banks could deny your application to open a new account.

Because second chance accounts are meant for customers who have demonstrated bad banking behavior, some lack features of traditional accounts, such as overdraft protection. In the eyes of the bank, you represent too much of a risk for them to extend you such courtesies.

Nobody likes paying fees, and we generally advise consumers to avoid needless banking fees due to the many fee-free banking options available. But fees are the price you pay for access to banking when you have a poor record. Plus, the second chance accounts listed below give you access to online and mobile banking, which is always a plus.

The 7 best second chance bank accounts

1. Tie between BBVA Compass ClearConnect Checking and BBVA ClearChoice Free Checking

BBVA Compass

Regional bank BBVA’s Compass ClearChoice Free Checking product is available as a second chance bank account. Keep in mind that it’s only available to residents of the states where BBVA maintains physical branches: Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas. But if you don’t live in those states, you can still avail yourself of BBVA’s Compass ClearConnect Checking account (unless you live in Alaska and Hawaii, in which case you are out of luck).

ClearChoice Free Checking features:

  • Free online and mobile banking, free customized alerts, free online and paper statements, and a free debit card (with option to personalize)
  • $25 minimum deposit to open
  • No monthly service charge to worry about

Fees to watch out for:

  • BBVA ATMs are free, otherwise a $3 fee will apply
  • $38 insufficient funds fee ($32 in California)
  • $15 deposit item returned fee
  • $32 stop payment fee made over the phone or in person ($30 in California); $25 if made online
  • No fee for closing your account within 180 days of opening

You can get a full list of Compass ClearChoice fees for each state here.

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on BBVA Compass’s secure website

Member FDIC

ClearConnect Checking features:

  • Free online and mobile banking
  • Minimum deposit of $25 needed to open the account
  • No monthly service charge

Fees to watch out for:

  • No fees for using any of the 55,000 BBVA and Allpoint ATMs, but for ATMs outside the network a $3 fee applies
  • $38 insufficient funds fee ($32 in California)
  • $15 deposit item returned fee
  • $32 stop-request fee when made over the phone or in person at a branch ($30 in California); a $25 fee to make the stop-request online
  • $25 account close fee if made within 180 days of opening

You can get a full list of Compass ClearConnect fees broken down by state here.

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on BBVA Compass’s secure website

Member FDIC

2. Wells Fargo Opportunity Checking and Savings Accounts

Wells Fargo Bank

Wells Fargo’s Opportunity Checking and Savings Accounts are tailor-made for folks with a lackluster credit or banking history. With a $25 opening deposit, you’ll get access to a second chance bank account that offers most of the bells and whistles of a traditional bank account. The account does come with a monthly fee, although it’s possible to waive it if you meet a few requirements (see below).

Account features:

  • $25 minimum deposit to open
  • Free transfers are available between Opportunity Checking and Savings accounts
  • You can choose to opt into overdraft protection
  • Free access to bill pay
  • “My Spending Report with Budget Watch” is available if you want to pay extra attention to where your money is going
  • Free debit card with access to more than 13,000 Wells Fargo ATMs throughout the country

Fees to watch out for:

  • $10 monthly service fee, waived if any of the following are true:
    • You make 10 posted debit card purchases or payments
    • You keep a minimum daily balance of $1,500 in the account
    • You receive $500 total in direct deposits each statement cycle
  • $35 overdraft and returned item fee
  • $12.50 overdraft protection transfer fee
  • $15 fee for excess activity (exceeding withdrawals from your savings account)
  • 3% foreign transaction fee with your debit card
  • $5 for money orders
  • $31 for stop payments

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on Wells Fargo Bank’s secure website

Member FDIC

3. Woodforest National Bank Second Chance Checking

Woodforest National Bank

This regional bank has a checking account aptly named Second Chance Checking, to help people rejected by other banks access — provided they live in one of the 17 states where a physical branch exists and can meet the $25 minimum opening deposit requirement. Those states are: Alabama, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia.

Fees to watch out for:

  • $9.95 monthly maintenance fee if you use a direct deposit (or $11.95 without a direct deposit), $3.00 monthly paper statement fee (which can be avoided if you sign up for electronic statements)
  • $9 one-time account set-up fee
  • $2.50 ATM withdrawal fee when used at a non-Woodforest network ATM
  • $15 debit card set-up fee
  • $29 overdraft fee (for each charge)

LEARN MORE Secured

on Woodforest National Bank’s secure website

Member FDIC

4. First National Bank and Trust Company Renew Checking

First National Bank and Trust Company (WI)

First National Bank and Trust Company’s second chance bank account offering is called Renew Checking. You’re eligible for a new account if you live near the bank’s Beloit, Wisc. headquarters, in southern Wisconsin and northern Illinois.

Account Features:

  • No monthly minimum balance
  • $25 minimum deposit to open
  • Free online and mobile banking, bill pay, and e-statements
  • Access to 70,000 no-fee ATMs worldwide through Allpoint and MoneyPass
  • Eligible to upgrade account after twelve months in good standing

Fees to watch out for:

  • $9.95 monthly service fee, or $7.95 with direct deposit
  • $30 early account closure fee (if closed within 90 days of opening)
  • $34.50 overdraft fee
  • $34.50 insufficient funds fee
  • $34.50 stop payment fee

The fee schedule for personal accounts at First National Bank and Trust Company is here.

LEARN MORE Secured

on First National Bank And Trust Company (WI)’s secure website

Member FDIC

5. Peoples Bank Cash Solutions Second Chance Checking

Peoples Bank Cash Solutions

This Texas-based bank offers a second chance bank account that is available nationwide, and so long as you don’t have a record of bank or checking fraud on your record, you should be approved for this account. You’ll need to deposit at least $30 before the bank activates your account and provides you with checks and a debit card.

Fees to watch out for:

  • $4.95 monthly maintenance fee
  • $27.50 overdraft fee
  • $27.50 nonsufficient funds fee
  • $3.95 printed statement fee (which can be avoided with electronic statements)
  • $2.00 ATM withdrawal fee at machines not owned by Peoples Bank
  • $25 stop payment fee
  • $20 account closure fee (if within 90 days of opening account)

LEARN MORE Secured

on Peoples Bank Cash Solutions’s secure website

Member FDIC

6. Radius Essential Checking

Radius Bank

Products from online bank Radius are available to customers nationwide, and accessibility is a strong point in its favor. This second chance bank account only requires customers to deposit $10 to open an Essential Checking account, which is lower than some other accounts on this list.

Account Features:

  • A free debit card
  • 24/7 mobile and online banking
  • Access to Radius’s budgeting and personal finance tracking apps
  • Eligibility to upgrade to Radius’s Reward Checking account after 12 months of positive banking history

Fees to watch out for:

  • $9 monthly maintenance fee
  • $25 per item non-sufficient funds fee (waived on all overdraft items $5 or less)
  • $5 daily overdraft fee

LEARN MORE Secured

on Radius Bank’s secure website

Member FDIC

Alternatives to a second chance bank account

Get a prepaid debit card

Tired of the traditional banking experience? You could opt for a prepaid debit card instead. With a prepaid card, you can load money onto it and spend at merchants that accept major credit and debit cards. But if you try and spend more money than what’s on the card, the transaction is declined — although this prevents you from accruing any overdraft or insufficient funds fees. This is useful if you feel you may still have trouble managing your spending and need an extra layer of security to prevent you from getting into trouble.

Some prepaid cards offer extra perks like advance direct deposit and free ATMs so long as you stay in their network.

Open a secured credit card

You may also have better luck applying for a secured credit card if your credit score is in good enough shape. Usually, this requires depositing cash with the lender, who then gives you the credit card for the same amount. Each month that you make on-time payments, the bank will report that good behavior to the credit bureaus, helping you boost your credit score. At the end of the payment period (generally 12 months, though it varies by banks), you’ll get the full deposit back.

Secured cards can come with high interest rates and many don’t feature the enticing rewards other high-end cards do, but they get the basic job done for consumers who don’t need a card with a high credit limit.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Erin Millard
Erin Millard |

Erin Millard is a writer at MagnifyMoney. You can email Erin at erinm@magnifymoney.com

James Ellis
James Ellis |

James Ellis is a writer at MagnifyMoney. You can email James here

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College Students and Recent Grads, Reviews

Sallie Mae Student Loans Review for 2019

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

mortar board cash

Most students who borrow money for their education should start with federal student loans. The federal loan programs offer borrowers a variety of repayment, forgiveness, cancellation and discharge programs that aren’t available from private lenders.

But if you reach your federal loan limits, or examine your options and find you might be better off with a private student loan, you can compare loan offerings from private student lenders. One of the largest private student loan companies, Sallie Mae, has more than a dozen education loan products you can consider.

What is Sallie Mae?

Started nearly 50 years ago, Sallie Mae has played a variety of roles in the student loan space, including lending federally guaranteed loans and private student loans, and servicing federal and private loans.

Sallie Mae spun off a portion of its student loan servicing business to form a new company, Navient, in 2014. And due to changes in the federal student loan programs, Sallie Mae no longer originates federally guaranteed loans. Now, Sallie Mae only offers and services private student loans, while also offering other banking products, such as savings accounts.

Types of student loans Sallie Mae offers

Whether you’re a parent of a grade school student or about to begin your doctorate, Sallie Mae may have a student loan that fits your needs. Its loans are designed for undergraduate students, graduate students and parents or sponsors of students. It also has loans to cover medical residency or bar exam costs.

  1. K-12: For a parent or sponsor of a child who wants to take out a loan to pay for a student’s private kindergarten-through-high school education
  2. Parent: For a parent or sponsor of a child who wants to take out a loan to pay for an undergraduate, graduate or certificate program
  3. Career training: For students at eligible non-degree granting schools
  4. Undergraduate: For students at degree-granting schools who are earning an associate or bachelor’s degree
  5. Graduate: For students at degree-granting schools who are earning a master’s, doctorate or law degree
  6. MBA: For business school students
  7. Health professions graduate: For graduate health profession students, including those in allied health, nursing, pharmacy, and other graduate-level health degrees.
  8. Dental school: For graduate dental degree students, including those in dentistry, endodontics and orthodontics programs
  9. Medical school: For graduate medical degree students, including those in allopathic, osteopathic and podiatric programs
  10. Medical residency and relocation: For medical residency students to help pay for board examinations and residency-related travel and moving expenses
  11. Dental residency and relocation: For dental residency students to help pay for board examinations and residency-related travel and moving expenses
  12. Bar study: For law students and recent graduates to help pay for bar review courses, registration and living expenses while you study
  13. Law school: For students studying for their law degree

Sallie Mae student loans in a nutshell

Most of Sallie Mae’s loans are identical when it comes to fees, cosigner release options and discounts.

Fees

  • Aside from the K-12 loan’s 3% disbursement fee, none of the loans have application, origination, disbursement or prepayment fees.
  • Late payments result in a fee that’s 5% of the amount due (capped at $25).
  • Returned checks carry a $20 fee.

Cosigner release

  • You can apply to release a cosigner after making 12 consecutive, on-time, full interest and principal payments. However, parent loans don’t offer a cosigner release option.

Discounts

  • With all but the K-12 loans, you can receive a 0.25% interest rate discount if you sign up for automatic payments.
 K-12 loansParent loansCareer trainingUndergraduate loansGraduate loansMBA loans
Fixed APR range*Not available5.49% -
12.87%
Not available5.49% -
11.85%
6.00% -
10.23%
6.00% -
10.23%
Variable APR range*9.61% - 16.27%5.74% -
12.37%**
6.87% - 13.96%**4.37% -
11.47%**
4.50% -
10.11%**
4.62% -
10.23%**
Loan termsThree years10 yearsFive to 15 yearsFive to 15 yearsFive to 15 yearsFive to 15 years
Loan amount$1,000 minimum

Borrow up to the school-certified cost of tuition
$1,000 minimum

Borrow up to the school-certified cost of attendance
$1,000 minimum

Borrow up to the school-certified cost of attendance
$1,000 minimum

Borrow up to the school-certified cost of attendance
$1,000 minimum

Borrow up to the school-certified cost of attendance
$1,000 minimum

Borrow up to the school-certified cost of attendance
Repayment plans (both in-school and post-school)Full interest and principal paymentsFull interest and principal payments

Interest-only payments
$25 a month

Interest-only payments


12-month interest-only repayment that begins after your separation or grace period ends
Deferment

$25 a month

Interest-only payments

12-month interest-only repayment that begins after your separation or grace period ends
Deferment

$25 a month

Interest-only payments

12-month interest-only repayment that begins after your separation or grace period ends
Deferment

$25 a month

Interest-only payments

12-month interest-only repayment that begins after your separation or grace period ends

**Variable rates are capped at 25%.

 Health professionsDental schoolMedical schoolMedical residencyDental residencyDental residencyLaw school
Fixed APR range*6.25% - 10.23%6.24% - 9.99%5.99% -
9.98%
Not availableNot availableNot available6.00% -
9.99%
Variable APR range*4.87% - 10.23%**4.87% - 9.99%**4.62% -
9.98%**
5.51% - 11.78%5.51% - 11.78%5.61% - 12.31%4.62% -
9.99%
Loan termsFive to 15 years20 years20 yearsUp to 20 yearsUp to 20 yearsUp to 15 yearsUp to 15 years
Loan amount$1,000 minimum

Borrow up to the school-certified cost of attendance
$1,000 minimum

Borrow up to the school-certified cost of attendance
$1,000 minimum

Borrow up to the school-certified cost of attendance
$1,000 minimum

Borrow up to $20,000
$1,000 minimum

Borrow up to $20,000
$1,000 minimum

Borrow up to $15,000
$1,000 minimum

Borrow up to the school-certified cost of attendance
Repayment plans (both in-school and post-school)Deferment

$25 a month

Interest-only payments

12-month interest-only repayment that begins after your separation or grace period ends
Deferment

$25 a month

Interest-only payments

12-month interest-only repayment that begins after your separation or grace period ends
Deferment

$25 a month

Interest-only payments

12-month interest-only repayment that begins after your separation or grace period ends
Full interest and principal payments

Two- or four-year interest-only repayment
Full interest and principal payments

Two- or four-year interest-only repayment
Full interest and principal payments

Two- or four-year interest-only repayment
Deferment

$25 a month

Interest-only payments

12-month interest-only repayment that begins after your separation or grace period ends

**Variable-rate loans have a 25% APR cap.

How Sallie Mae compares with other lenders

Sallie Mae finished first among MagnifyMoney’s top five private student lenders for 2019. We compared undergraduate student loan products and began with the nation’s 10 largest national lenders. The ranking focused on loans’ APR ranges, discounts, fees and repayment terms, as well as lenders’ policies for releasing a cosigner, deferring loan payments and their online applications.

In addition to having a top-rated undergraduate loan, Sallie Mae differentiates itself by offering its wide variety of different student loans. Many of these other loans share characteristics with the undergraduate loan, including the 12-payment cosigner release requirement, lack of a specific maximum loan amount and a 0.25% interest rate discount for auto debit.

However, as with any lender, there are pros and cons to consider before taking out a loan from Sallie Mae.

LEARN MORE ABOUT SALLIE MAE Secured

on Sallie Mae Bank’s secure website

Advantages of Sallie Mae Student Loans

You may be able to choose a repayment plan. Depending on the loan product, you may be able to choose from up to three different repayment plans. A plan that requires you make payments while you’re in school could help you save money in the long run; however, deferring your full payments can give you more money to cover education and living expenses now.

12-month payment requirement for cosigner release. With most Sallie Mae student loans, you can apply to release your cosigner once you make 12 consecutive, full, on-time payments. Other lenders may let you apply for cosigner release, but it could take longer to qualify, in some cases requiring 48 full monthly payments before you can apply.

In addition to the payments, you’ll need to pass a credit check and meet Sallie Mae’s requirements for releasing a cosigner.

Discharge due to death or permanent and total disability. Similar to the federal student loan guidelines, Sallie Mae will waive a borrower’s current balance if he or she dies or becomes permanently and totally disabled. The benefit may be especially important to borrowers who have a cosigner or dependents, such as a spouse or child(ren), who could be affected if the debt isn’t waived.

No preset loan limit. While some federal student loans and private student loans set dollar-amount limits on how much you can borrow, most Sallie Mae student loans allow you to borrow up to your school’s certified cost of attendance.

Loans for less-than-half-time students. Some private school lenders require borrowers to have at least a half-time course load to qualify for a student loan. Sallie Mae’s loans for students don’t have this requirement.

Forbearance and deferment options. Putting your loans into forbearance or deferment lets you temporarily stop making payments without getting charged late fees or hurting your credit. Forbearance is generally for when you have trouble making payments, perhaps due to losing a job or a medical emergency. Deferment, meanwhile, may apply to other circumstances, such as returning to school.

Sallie Mae could approve up to 12 months of forbearance in three-month increments and up to 60 months of deferment in 12-month increments. Interest continues to accumulate, and your long-term costs may increase, but forbearance or deferment are still better options than missing a payment or letting a loan go into default.

Extra perks. Many of Sallie Mae’s student loans also come with the Study Smarter benefit. With it, borrowers can get four months of free study tools or 30 minutes of live online tutoring through Chegg Tutors® or a combination of the two.

All of Sallie Mae’s loans also give borrowers and cosigners quarterly access to a FICO® credit score.

Drawbacks of Sallie Mae Student Loans

No additional interest rate discount. Sallie Mae’s 0.25% interest rate discount for auto debit is standard for most federal and private student loans. But other private lenders offer borrowers opportunities to get an additional 0.25% to 0.50% interest rate discount by having other financial products from the same lender or making auto debits from an account with the same lender.

Sallie Mae assigns loan terms. Many Sallie Mae student loans have a repayment term that ranges from five to 15 years. Most other lenders that offer a range of terms let borrowers choose their term, along with the corresponding monthly payment and interest rate. Sallie Mae, however, will assign you a term.

No loan pre-approval. Private student loans require a credit check. Some lenders will do a soft credit pull, which doesn’t hurt your score, to determine if you can qualify for a loan or need a cosigner and to show you estimated interest rates if you qualify. Sallie Mae will only show you rates after a hard credit inquiry, which could hurt your score slightly.

What it takes to qualify with Sallie Mae

All Sallie Mae student loans have the same basic requirements:

Minimum credit score: Sallie Mae doesn’t disclose a minimum credit score requirement. In 2016, applicants that were approved for a Sallie Mae student loan had, on average, a 748 FICO score at the time of approval.
Minimum age for borrowers: Borrowers must be the age of majority in their state (often 18 years old). Younger applicants will need an eligible and creditworthy cosigner.
State residency requirements: Sallie Mae student loans are available in every state.
Eligible schools: Sallie Mae doesn’t publish a list of eligible schools, but you can search for the name of a school at the beginning of the loan application to see if your school qualifies.

 K-12 loansParent loansCareer trainingUndergraduate loansGraduate loansMBA loans
Additional requirementsThe student you’re taking the loan out for has to be enrolled in a private school.The student you’re taking the loan out for has to be pursuing a certificate or an associate, bachelor’s or graduate degree at a degree-granting school.You must be enrolled at a non-degree-granting school and pursuing professional training or a certification.You must be a enrolled at a degree-granting school and pursuing a certification or an associate or bachelor’s degree.You must be enrolled at a degree-granting school and pursuing a master’s, doctorate or law degree.You must be enrolled at a degree-granting school and pursuing a masters of business administration degree.
 Health professionsDental schoolMedical schoolMedical residencyDental residencyBar studyLaw school
Additional requirementsYou must be enrolled at a degree-granting school and pursuing a degree in one of the eligible areas of study.You must be enrolled at a degree-granting school and pursuing a degree in one of the eligible areas of study.You must be enrolled at a degree-granting school and pursuing a degree in one of the eligible areas of study.You must either have a half-time course load and be in your last year at an eligible school, or graduated from an eligible school in the previous 12 months.

If you didn’t already earn your medical degree, you must expect to earn the degree in the current academic program year.
You must either have a half-time course load and be in your last year at an eligible school, or graduated from an eligible school in the previous 12 months.

If you didn’t already earn your dental degree, you must expect to earn the degree in the current academic program year.
You must either have a half-time course load and be in your last year at an eligible school, or graduated from an eligible school in the previous 12 months.

You must take the bar exam within 12 months of graduating.
You must be enrolled at a degree-granting school and pursuing a J.D. degree.

What borrower is Sallie Mae best for?

Sallie Mae offers a variety of student loan products that could be a good fit for parents or students. If you, or a student you’re supporting, can’t take out additional federal student loans but need more money for school, Sallie Mae’s lack of a predefined loan limit could make it a good option.

The medical and dental residency programs and the bar study loan do have a loan limit. But even then, it’s higher than the limit of some competitors who offer similar types of loans.

You also may want to consider Sallie Mae if you think you’ll need a cosigner and would like to release the cosigner later. Although you still may not qualify, depending on your creditworthiness, the 12 months of consecutive full payments is shorter than what some other lenders require.

Taking a closer look at the online platform

You can learn a lot of details about Sallie Mae’s student loans on its website. There are specific pages for each loan product that have a lot of the basic information you’ll want to know. And there are pages with generally helpful information, such as how to make a loan payment or options if you’re having trouble making payments.

Some of the informational pages, such as on the one about interest rates and interest capitalization, also have quick video explainers to help you understand the topic and why it’s important to student loan borrowers.

The actual loan application doesn’t have quite as nice of a design as the other parts of the Sallie Mae website, but it’s still relatively easy to navigate and fill out.

The fine print

The Sallie Mae product and informational pages give you a lot of the basic information you’ll want if you’re comparing student loans from several lenders. There are also loan application and solicitation disclosure forms for many of the loans online. In these, you can see fine-print items like the variable-rate loans’ interest-rate cap and late payment fees.

It’s more difficult to find fine-print information on some of the loans, though. The K-12, residency and bar loans don’t have application and disclosure forms on their pages, for example. We were only able to confirm these loans’ fees and interest rate caps by reaching out to a representative from Sallie Mae.

While you would have a chance to review your loan details after agreeing to a credit check but before signing the loan agreement, it would be nice to have that information up front.

We were also disappointed in how difficult it is to understand how loan terms work with Sallie Mae student loans.

Some private lenders only offer one term. Others offer a variety of terms and let borrowers choose their loan term. Most of Sallie Mae’s undergraduate and graduate student loans have a five- to 15-year term, but Sallie Mae chooses which term to offer you.

The loan-term range and the fact that Sallie Mae chooses the term rather than the borrower aren’t clearly disclosed on the loan’s main page.

What to expect during the application process

Sallie Mae has an online loan application system that makes the process fairly uniform for all its student loans. A few questions may differ, but you can expect the process to be similar to the following steps. Applicants with cosigners may need the cosigner’s personal information, including his or her Social Security number and date of birth.

Basic information

General information. Basic information about the student and borrower:

  • Your name, email address and phone number.
  • Your date of birth, citizenship status and Social Security number.
  • Your relationship to the student, if you’re taking out a loan for someone else.

Address. Your permanent address and a previous address if you moved in the last year. If you have a different mailing address you’ll have to fill that in, too.

Student and school information. If you’re taking out the loan for a student, you’ll need the student’s name, date of birth, citizenship status and Social Security number.

Enter the name of the school and your (or the student’s) academic information:

  • Degree type or certificate of study
  • Major or specialty
  • Enrollment status
  • Grade level
  • Academic period that the loan will cover
  • Anticipated graduation or certification graduate date

Loan application

Loan amount. The cost of attendance, which the application can help you estimate, as well as your estimated financial assistance.

You’ll automatically have a loan amount for the difference between your cost of attendance and financial assistance. You can choose to request less money, and even if you’re approved, Sallie Mae could offer you less than what you requested.

Employment info: Fill in information about your work, including:

  • Employment status
  • Employer’s name
  • Your occupation
  • Work phone number
  • Years with the current employer
  • Gross annual income

Financial info: You can list additional income and assets you have, such as:

  • Income from alimony, child support or a rental property
  • Investments
  • Disability
  • Social Security
  • Income from a household member, such as a spouse
  • Your current assets that could be in checking, savings, CD or money market accounts

You’ll also be asked about your expenses, including monthly housing payments (when applicable).

Personal contacts: Unless you’re taking out a loan for someone else, you’ll have to share two personal contacts that Sallie Mae can use as references. These could be a relative or family friends, and you’ll have to have their full name and phone number.

Submit application: Choose to apply on your own or add a cosigner. You’ll be prompted to read and agree to an electronic delivery consent form, and may then get a copy of the loan’s disclosure form and Sallie Mae’s privacy policy.

You’ll have to agree to let Sallie Mae review your credit history to submit your application.

Finalize the loan

Once you’ve completed an application, you may need to send verification information (such as pay stubs or tax returns). But generally, Sallie Mae will offer a quick response based on your credit.

If you’re approved, you can choose your type of interest rate and repayment plan before accepting the loan. Once you accept the loan offer, Sallie Mae will contact your school to verify that you’re eligible for the loan and loan amount.

The school certification process may take several weeks, and it could even be put on hold until about a month before your term begins. As long as everything checks out, Sallie Mae will send the loan to you or your school, depending on the type of loan.

Already have student loans and looking to refinance? Check out our top picks to refinance student loans.

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Louis DeNicola
Louis DeNicola |

Louis DeNicola is a writer at MagnifyMoney. You can email Louis at louis@magnifymoney.com

Rebecca Safier
Rebecca Safier |

Rebecca Safier is a writer at MagnifyMoney. You can email Rebecca here

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