Sallie Mae Bank Ups 18-Month CD To 2.80% APY

DA readers may have noticed that this week’s CD Rates Summary didn’t feature that many rate increases, but two of SallieMae Bank’s CDs had green arrows next to them. The 18-month CD (2.80% APY) and 12-month CD (2.75% APY) recently added 10 and 5 bps respectively, making the two APYs more competitive as other rates are falling. Either CDs can be opened with a $2.5k minimum deposit, with no stated balance cap.

As stated on SallieMae Bank’s FAQs page, the Early Withdrawal Penalty (EWP) reads as follows:

If your CD has a maturity term greater than 12 months,
the penalty will be equal to 180 days’ simple interest.

SallieMae Bank CDs have a ten calendar day grace period, which begins on the date of maturity. Unlike other financial institutions that require written notice on a secured email account, SallieMae Bank can be notified by phone (877.346.2756) as to the disposition of maturing CD funds.

Thanks to DA readers, MikeG for his Forum post about Sallie Mae Bank’s recent rate increases, and to buckeye61, for his many Forum posts about Sallie Mae Bank.

Money Market

In the past year, a total of 55 bps has been added to the Money Market Account APY in five rate increases, securing its place as the more competitive savings account in Sallie Mae Bank’s product line. The High-Yield Savings account rate (2.10% APY) has historically trailed that of the MMA.

While the MMA and High-Yield Savings are similarly structured with no tiers or fees, the MMA's check writing ability gives it a distinct edge: when withdrawing a large amount, the money will keep earning a top rate until the check has posted and settled. For more details about the MMA, please refer to my March 5, 2019 blog post.

Availability

Headquartered in Salt Lake City, Utah, SallieMae Bank is a “pure” internet bank, with no brick-and-mortar branch locations. Accounts are available to individuals who have a valid Social Security number and a physical address in the United States. Opening any account, including CDs, Savings, and Money Market accounts, must be done online.

Bank Overview

SallieMae Bank has an overall health rating of "A+" at DepositAccounts.com, with a Texas Ratio of 2.07% (excellent) based on March 31, 2019 data. In the past year, SallieMae Bank has increased its total non-brokered deposits by $1.05 billion, an excellent annual growth rate of 12.54%. Please refer to our financial overview of SallieMae Bank (FDIC Certificate # 58177) for more details.

The Student Loan Marketing Association (better known as "SallieMae") 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 SallieMae Bank has expanded its product line beyond student loans to include CDs, Savings Accounts, Money Market Accounts, Insurance, and Credit Cards. SallieMae Bank is currently the nation's 63^rd largest bank, with assets in excess of $26.7 billion.

How the CDs Compare

When compared to the similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are offered by internet banks, Sallie Mae Bank’s 18-month CD APY currently ranks second.

When compared to the similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are offered by internet banks, Sallie Mae Bank’s 12-month CD APY currently ranks second.

The above rates are accurate as of 6/21/2019.

To look for the best CD rates, both nationwide and in your state, please refer to our CD Rates Table page.