I don't usually expect to see rate increases at the end of any given month, but in this climate of constantly rising rates there doesn’t seem to be a “business as usual” timetable. In keeping with this new normal, Sallie Mae Bank raised the rates on most of its CDs yesterday, with the 24-month (2.30% APY), 18-month (2.05% APY), and 12-month (2.00% APY) being the most competitive. Any of these CDs can be opened with a $2.5k minimum deposit, with no stated balance cap.
|2.30%||$2,500||-||Sallie Mae Bank||24 Month CD|
|2.05%||$2,500||-||Sallie Mae Bank||18 Month CD|
|2.00%||$2,500||-||Sallie Mae Bank||12 Month CD|
The 18- and 24-month CDs were added to the product line in July 2017 with rather mediocre rates (1.43% APY and 1.65% APY, respectively). This week’s rate hikes have made these CDs contenders. Like many other financial institutions, Sallie Mae Bank has a flattening CD yield curve, with only 20 bps separating the 24-month APY and the 60-month APY. The full list of CD rates can be viewed in our Sallie Mae Bank CD table.
As stated on Sallie Mae Bank’s Certificate of Deposit FAQs page, the Early Withdrawal Penalty (EWP) reads as follows:
If your CD has a term of 12 months or less, the penalty will be equal to 90 days’ simple interest.
If your CD has a maturity term greater than 12 months, the penalty will be equal to 180 days’ simple interest.
Thanks to DA reader, buckeye61, for the Forum post about Sallie Mae Bank’s latest rate increases.
Sallie Mae Bank also raised the rate on its High-Yield Savings. Yesterday, the rate increased 35 bps to 1.35% APY. In the past ten months, the High-Yield Savings has had three rate increases, adding a total of 55 bps. With eleven other financial institutions offering higher APYs on their savings accounts, the High-Yield Savings’ new 1.35% APY isn’t that impressive, but it’s headed in the right direction.
The High-Yield Savings has no minimum opening deposit or minimum balance requirement, but a dormant account (a balance of $100 or less with no activity for the past twelve months) may be closed. There is also an Excessive Transaction Fee of “$10 for each item that exceeds the maximum number (6) of transactions.”
SallieMae Bank is a little unusual in that their Money Market Account (MMA) is their high-rate account, rather than their High-Yield Savings account. With this rate increase, the rate gap between the two has diminished, but the MMA continues to offer a higher rate (1.45% APY). The MMA and High-Yield Savings are quite similar, as both have no tiers and no fees, but the MMA does offer check writing.
Sallie Mae Bank is an internet-only bank, with its headquarters located in Salt Lake City, Utah. Accounts are available to individuals who have a Taxpayer Identification Number (usually a Social Security Number) and a physical address in the United States. Opening any account, including CDs and Savings accounts, must be done online.
Sallie Mae Bank has an overall health rating of "A+" at DepositAccounts.com, with a Texas Ratio of 1.92% (excellent) based on September 30, 2017 data. In the past year, Sallie Mae Bank has increased its total non-brokered deposits by $2.11 billion, an excellent annual growth rate of 3685%. Please refer to our financial overview of Sallie Mae Bank (FDIC Certificate # 58177) for more details.
When most people hear "Sallie Mae," they think of private student loans. The Student Loan Marketing Association (aka "Sallie Mae") opened its doors as a Government-Sponsored Enterprise (GSE), designed to support the guaranteed student loan program created by the Higher Education Act of 1965. Chartered in 2005, the internet-only Sallie Mae Bank has expanded its product line beyond student loans to include CDs, Savings Accounts, Money Market Accounts, Insurance, and Credit Cards, and today has assets in excess of $20.8 billion.
How the CDs Compare
When compared to the 198 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, Sallie Mae Bank’s 24-month CD APY currently ranks second.
When compared to the 206 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, Sallie Mae Bank’s 12-month CD APY currently ranks fourth.
When compared to the 150 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, Sallie Mae Bank’s 18-month CD APY currently ranks fourth.
The above rates are accurate as of 1/27/2018.
To look for the best CD rates, both nationwide and in your state, please refer to our CD Rates Table page.