Sallie Mae Bank Reviews: Money Market, Savings and CD Rates

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Updated on Tuesday, September 1, 2020

Sallie Mae Money Market Account

A competitive interest rate with no fees or minimum balance requirement.

APY

Minimum Deposit to Earn APY

0.70%

None

  • Minimum opening deposit: None
  • Monthly maintenance fees: None
  • ATM fee: No ATM access
  • Overdraft fee: $19 insufficient funds fee

There is no minimum balance or deposit required to open this account, which is a real advantage given its competitive rate or annual percentage yield (APY). Since Sallie Mae Bank operates entirely online and account holders don’t get an ATM card, this account would be best suited for people who don’t plan on touching their money very often. Sallie Mae offers online and mobile banking with electronic deposits for daily account management.

Federal Reserve’s Regulation D mandates certain types of telephone and electronic withdrawals, including transfers from savings accounts up to 6 per statement cycle. Exceeding this limit results in a $10 fee per transaction from the bank. Transfers into and between Sallie Mae accounts are free, but a $20 fee is charged on transfer to another bank. Sallie Mae does not initiate international wire transfers.

How to get the Sallie Mae Bank Money Market Account

You can apply for a Sallie Mae Money Market Account online. You’ll be prompted to enter and verify your information. In some cases, you may need to verify your identity by submitting your driver’s license. Note that if an account sits dormant with a balance of less than $100 for 12 months, Sallie Mae may close it.

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How Sallie Mae’s Money Market Account compares

Sallie Mae’s Money Market Account is competitive compared to other offerings on our round-up of the best money market accounts. The rate isn’t the highest, but few money market accounts offer as high a rate without requiring a minimum deposit or minimum balance. Those facets alone make this account extremely approachable.

Sallie Mae Bank’s savings account options

High-Yield Savings Account

A competitive interest rate, with no fees or minimum balance requirements on this savings account.

APY

Minimum Deposit to Earn APY

0.65%

None

  • Minimum opening deposit: None
  • Monthly maintenance fees: None
  • ATM fee: No ATM access
  • Overdraft fee: $19 insufficient funds fee

Sallie Mae’s High-Yield Savings Account stands out by offering a competitive rate without any monthly fees or balance requirements. While there are better savings rates available, this account would work well for anyone looking for a hands-off way to earn a decent yield.

Sallie Mae’s High-Yield Savings Account does not come with a debit or ATM card, making the account less accessible to those who want to use their money frequently. Federal Regulation D (this regulation applies to all savings accounts) mandates certain types of telephone and electronic withdrawals, including transfers from savings accounts up to 6 per statement cycle. One important thing to note is that this account can only be funded via Automated Clearing House (ACH) transfer or check. Sallie Mae does not accept cash or money order deposits.

How to get the Sallie Mae Bank High-Yield Savings Account

To open an account, you’ll need to visit Sallie Mae’s website, fill out an application form and provide some personal information like name and date of birth. In some cases, you may have to verify your identity further by submitting documents like your driver’s license. Once approved, you can fund your account via ACH transfer, check or an existing Sallie Mae account. New accounts are subject to a five-day hold on amounts less than or equal to $5,000, with an additional five days for any amount over that.

SmartyPig Account

Free savings account helps you set and achieve savings goals, pays a decent interest rate and has no minimum balance requirement.

APY

Minimum Deposit to Earn APY

1.10%

None

  • Minimum opening deposit: None
  • Monthly maintenance fees: None
  • ATM fee: No ATM access
  • Overdraft fee: N/A

Sallie Mae Bank’s SmartyPig account is meant to help you save for specific goals and would be a good fit for those who want to organize their savings goals, all while earning an impressive rate and not paying fees. The account is advertised as having multiple APY tiers based on the savings account balance; however, as of writing, all tiers offered the same rate.

With a SmartyPig account, you have a primary account, which holds all deposits. From there, you have the ability to set up multiple savings goals under the primary account. Each goal goes into a sub-account, letting you track the progress you’ve made towards your goal. Account holders have the ability to set up automatic deposits into the account. It does not come with a debit or ATM card and is subject to the Regulation D which mandates certain types of telephone and electronic withdrawals, including transfers from savings accounts up to 6 per statement cycle.

How to get the Sallie Mae Bank SmartyPig Account

To open a SmartyPig account, you must be 18 years old. Once you complete the application process (which requires some basic personal information), you can fund your account. Funds will be on hold for five days from the date of deposit.

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How Sallie Mae’s savings accounts compare

Sallie Mae offers a variety of interest-bearing savings accounts. While none of them currently offer the best rate in the market compared to those on our list of the best online savings accounts, they all offer competitive rates and have noteworthy features that emphasize the importance of creating smart savings habits.

None of Sallie Mae’s savings accounts have extra fees or requirements for minimum balances or minimum deposits, helping to put them on par with some of the best offerings currently on the market. However, one important factor to take into consideration is that none of Sallie Mae Bank’s savings accounts offer ATM access.

Sallie Mae Bank’s CD Rates

Earn competitive rates on a certificate of deposit with a higher-than-average minimum deposit.

Term

APY

Minimum Balance to Earn APY

6 months

0.50%

$2,500

9 months

0.50%

$2,500

11 months

0.50%

$2,500

12 months

0.60%

$2,500

13 months

0.60%

$2,500

15 months

0.60%

$2,500

18 months

0.60%

$2,500

24 months

0.60%

$2,500

30 months

0.60%

$2,500

36 months

0.60%

$2,500

60 months

0.60%

$2,500

  • Minimum opening deposit: $2,500
  • Minimum balance amount to earn APY: $2,500
  • Early withdrawal penalties, which depend on the original term of the CD, are:
    • Less than 12 months: 90 days of interest
    • More than 12 months: 180 days of interest

The rates on Sallie Mae Bank’s CDs are competitive, but they fall short when it comes to minimum deposits. There are other accounts with APYs on par with or higher than Sallie Mae’s that do not require a minimum deposit or balance to maintain an account.

This account automatically renews when your CD matures. Upon maturity, account holders have a 10-day grace period to withdraw funds from the account before it renews. Withdrawing interest earned on your CD can be done at any point throughout a CD’s term without penalty.

How to get Sallie Mae Bank’s CDs

To open a CD with Sallie Mae Bank, you’ll need to apply for an account online. You’ll have to enter some personal information, and in some cases, take extra steps to verify your identity. Currently, the only way to put money in an account is through ACH transfer or by check.

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How Sallie Mae’s CD rates compare

While you can find slightly higher APYs on our listings, Sallie Mae still offers solid CD rates. The biggest downside is the $2,500 minimum balance and deposit requirement.

 

Overall review of Sallie Mae’s banking products

Sallie Mae’s account offerings are competitive. However, its online and mobile banking has all the features you’d need to save and manage your money on a day-to-day basis. None of the above accounts come with a debit or ATM card. While limited account accessibility may be a big downside to some, this could be looked at as a positive if you’re prone to dipping into your savings frequently.What makes Sallie Mae products stand out is their emphasis on the importance of creating smart savings habits. The fact that all of their accounts don’t charge any monthly fees and earn some form of interest means you won’t do yourself a disservice by opening an account.

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