Sallie Mae Bank's Money Market Now Earns 1.90% APY

POSTED ON BY

Deal Summary: Money Market (1.90% APY), High-Yield Savings (1.75% APY), and 24-month CD (2.80% APY)

Availability: Nationwide (internet bank)

SallieMae Bank has been busy increasing rates since beginning of the year. There's been enough rate change activity to warrant 15 blog posts and Forum posts about the Money Market account, the High-Yield Savings account, and several CDs. While the individual rate increases haven’t been wow-worthy on their own, the cumulative effect is keeping SallieMae Bank at the front of the rates peloton.

Money Market Account

The Money Market Account (MMA) continues to be SallieMae Bank’s most competitive deposit account, offering 1.90% APY. Since the beginning of the year, a total of 58 bps have been added to the MMA’s APY in six rate increases. This week's rate increase added 15 bps.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.90%--Sallie Mae BankMoney Market
Rates as of July 22, 2018.

The fee-free MMA can be opened with as little as $1. There is no minimum or maximum balance requirement for SallieMae Bank’s MMA, however,

if you open an Account that remains dormant, with a balance of $100 or less
with no activity for the past 12 months, we reserve the right to close the Account.

SallieMae Bank’s MMA offers check writing, unlike some other so-called MMAs, like CIT Bank's Money Market Account (1.85% APY) or Capital One's 360 Money Market (1.60% APY). Checks are provided at no cost if they are ordered when the MMA is opened; any check orders placed after account opening are $5. There is also a $10 Excessive Transaction Fee for each item beyond the limit of six transactions per month.

If you repeatedly exceed this limit, we’re required to close your account(s).

SallieMae Bank is unique, in that its high-rate account is the MMA (1.90% APY), rather than the High-Yield Savings account (1.75% APY). The MMA and High-Yield Savings are structured similarly (no tiers or fees), but the MMA's check writing ability is an important difference: when withdrawing a large amount, the money will keep earning a top rate until the check has posted and settled. As one of my colleagues pointed out, “that’s often a reason banks offer higher rates on their savings account, rather than on their MMAs.”

Complete details about the MMA (including information concerning POD accounts) are available on Deposit Account Terms and Conditions Agreement page.

High-Yield Savings

The High-Yield Savings now earns 1.75% APY on all balances. Since January, the High-Yield Savings has had five rate increases, adding a total of 75 bps.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.75%--Sallie Mae BankHigh-Yield Savings
Rates as of July 22, 2018.

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.”

24-Month CD

SallieMae Bank recently raised the rate on its 24-month CD to 2.80% APY. The minimum deposit is $2.5k, with no stated balance cap. While SallieMae Bank has been offering a couple select CDs since 2010, eight additional CDs were added to the product in July 2017, including the 24-month CD. In the past year, the 24-month CD has gained 115 bps, making it the most competitive CD SallieMae Bank offers.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.80%$2.5k-Sallie Mae Bank24 Month CD
Rates as of July 22, 2018.

As stated on SallieMae Bank’s Certificate of Deposit 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.

Thanks to DA reader, buckeye61, for his continued Forum posts on SallieMae Bank.

Availability

Headquartered in Salt Lake City, Utah, SallieMae Bank is an internet-only bank, with no brick-and-mortar branches. Accounts may be opened by 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, Money Market, and Savings accounts, must be done online.

Bank Overview

SallieMae Bank has an overall health rating of "A+" at DepositAccounts.com, with a Texas Ratio of 1.71% (excellent) based on March 31, 2018 data. In the past year, SallieMae Bank has increased its total non-brokered deposits by $1.15 nillion, an excellent annual growth rate of 15.92%. Please refer to our financial overview of SallieMae Bank (FDIC Certificate # 58177) for more details.

If I say "SallieMae," chances are you would think of private student loans. The Student Loan Marketing Association (aka "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, and today has assets in excess of $23 billion, with more than $16.9 billion in deposits.

How the Money Market Account Compares

When compared to the Money Market accounts tracked by DepositAccounts.com that are available nationwide and are not limited by a low balance cap, SallieMae Bank’s Money Market Account APY currently ranks second.

Interest RateAccount NameCredit Union/Bank
2.01% APY eMoney Market (no min/no max)Virtual Bank
1.90% APYMoney Market Account (no min/no max)SallieMae Bank
1.85% APYMoney Market Account ($100 min/no max)CIT Bank

Looking for the best MMA rates, either nationwide or in your state? Please refer to our Money Market Accounts rates table page.

How the CD Compares

When compared to the 196 nationally available similar length of term CDs tracked by DepositAccounts.com that require a similar minimum deposit, SallieMae Bank’s 24-Month CD APY currently ranks third.

Interest RateCD Length of TermCredit Union/Bank
2.90% APY24-Month Share CertificateCommunityWide Federal Credit Union
2.85% APY25-Month CDUSALLIANCE Financial
2.80% APY24-Month CDSallieMae Bank

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

The above rates are accurate as of 7/4/2018.

Related Pages: savings accounts, money market accounts, 5-year CD rates, nationwide deals, Internet banks

Comments
alan1
alan1   |     |   Comment #1
People considering opening a money market or savings account should be aware of this bank's very long hold times on deposits. See item 5 ("Funds Availability Schedule) of Sallie Mae Bank's Deposit Account Terms and Conditions Agreement

https://www.salliemae.com/banking/terms/rd/
Relatively Speaking
Relatively Speaking   |     |   Comment #2
A 10 business day hold on deposits greater than $5000 does seem a bit burdensome! Does anyone have information on how quickly they push money to your "home" account via ACH?
buckeye61
buckeye61   |     |   Comment #3
Good point, but the hold times can be avoided by doing a "ACH push" into the account. Also, their outgoing ACH transfers are fast(1 to 2 business days).
alan1
alan1   |     |   Comment #4
#3 -- thank you; the money market account would be more attractive if the hold times can be avoided by pushing funds into the account.

According to the Deposit Account Terms and Conditions, the lengthy hold times are applicable to "all deposits made by check or electronically". How do you know that those times do not apply to ACH pushes? Thanks.
buckeye61
buckeye61   |     |   Comment #5
I have accounts with them. When I push money into Sallie Mae using another Bank's ACH its treated as a "Direct Deposit" and the funds are available immediately.
alan1
alan1   |     |   Comment #6
Thank you, buckeye61. The combination of interest rate, checkwriting ability, no minimum to open the account, and no cap on the amount that can earn the interest rate, makes the money market account an attractive product.
Very Anonymous
Very Anonymous   |     |   Comment #8
Alan1 (comment #3):

NACHA Operating Rules requires that the Receiving Depository Financial Institution (RDFI) make any ACH credits received from an ACH operator available for withdrawal no later than the settlement day of the entry.

If you want to sent and receive ACH entries in the United States, you have to play by NACHA's rules.

See Subsection 3.3.1 of the 2013 NACHA Operating Rules & Guidelines (Corporate Edition). I'm sorry, but it won't let me copy and paste.
larry
larry   |     |   Comment #7
So the real question to me is can you plunk down $250k and transfer it out in 1-2 days with ACH?
The game's afoot!
The game's afoot!   |     |   Comment #9
Will this force Dollar Savings Direct with "America's Highest Rate" to either match or leap frog over this rate?
anonymous
anonymous   |     |   Comment #10
The same bank that owns DollarSavingsDirect apparently considers 0.5% the "American Dream" so I wouldn't be surprised if they start scaling back on their interpretation of what is "America's Highest Rate."
Rickny
Rickny   |     |   Comment #11
Dollar has been stuck at 1.80% for a while. They had been a rate leader for over a year and had next day ACH. I moved most of my funds from Dollar to Northern and getting the 2.26%. So I have a floor for a year and if rates go up the account is liquid and I can move the funds easily.
Sallie Mae Bank's 24-Month CD APY Raised
Deal Summary: CDs – 12-month (2.30% APY), 24-month (2.75% APY), 36-month (2.55% APY), 60-month (2.85% APY), $2.5k minimum deposit.

Availability: Nationwide (internet bank)

DA readers that follow the bi-weekly CD Rates Summary may have noticed that Sallie Mae Bank’s CDs weren’t included in this week’s issue. They were removed in the May 22 Summary because the APYs were too low. With a round of rate increases this week, Sallie Mae Bank CDs are once again competitive, with the 24-month CD offering the best APY....

Continue Reading
Sallie Mae Bank Ups Money Market Account Rate
Deal Summary: Money Market Account (1.75% APY) and High-Yield Savings (1.65% APY)

Availability: Nationwide (internet bank)

As DA reader, Buckeye61, noted in a Forum post this morning, Sallie Mae Bank has bumped up several of their rates. Just like last month's rate increases, the new APYs aren’t stellar, but they certainly keep Sallie Mae Bank in the hunt.

Money Market Account

With its new 1.75% APY, the Money Market Account (MMA) continues to be Sallie Mae Bank’s most competitive deposit account. Since the beginning of the year, a...

Continue Reading
Sallie Mae Bank Money Market Rate Raised
Deal Summary: Money Market Account, 1.65% APY. High-Yield Savings, 1.55% APY. CDs – 12-month (2.10% APY), 36-month (2.30% APY), 60-month (2.65% APY), $2.5k minimum deposit.

Availability: Nationwide (internet bank)

Sallie Mae Bank made across-the-board deposit account rate increases yesterday. While none of these new rates are spectacular, they merit more than a just quick mention.

Money Market Account

Earning 1.65% APY, the Money Market Account continues to be the most competitive deposit account offered by Sallie Mae Bank. In the first four months of this...

Continue Reading
Sallie Mae Bank's 24-Month CD Rates Jumps Up
Deal Summary: CDs – 24-month (2.30% APY), 18-month (2.05% APY), 12-month (2.00% APY), $2.5k minimum deposit. High-Yield Savings, 1.35% APY.

Availability: Nationwide (internet bank)

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...

Continue Reading
Sallie Mae Bank Boosts Money Market Account
Deal Summary: Money Market Account (1.45% APY), no minimum or maximum deposit requirements. 12-month CD (1.80% APY), $2.5k minimum deposit.

Availability: Nationwide (internet bank)

Back in July, I thought SallieMae Bank might become a forerunner in the money market rate race after three rate increases, which added a total of 40 bps to its Money Market Account (MMA). Following a July increase to 1.30% APY, the MMA's rate remained static until mid-December when it inched up to 1.32% APY. As DA reader, buckeye61, noted in a...

Continue Reading

More Past Offers



The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact feedback@depositaccounts.com to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.