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 year, a total of 33 bps have been added to the MMA’s APY in three rate increases. The opening deposit can be as low as $1.
There is no minimum or maximum balance requirement for Sallie Mae Bank’s MMA and there are no monthly fees associated with the account. 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.
Check writing is available, which is not the case with several other so-called MMAs, like CIT Bank's Money Market Account (1.75% APY) or Capital One's 360 Money Market (1.50% 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 per month.
If you repeatedly exceed this limit, we’re required to close your account(s).
Sallie Mae Bank’s approach to their MMA’s rate is not typical, in that the MMA is the high-rate account (1.65% APY), rather than the High-Yield Savings account (1.55% APY). The MMA and High-Yield Savings are structured similarly, with 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.
The High-Yield Savings rate was increased to 1.55% APY yesterday. In the past year, the High-Yield Savings has had three rate increases, adding a total of 75 bps. With nine other financial institutions offering higher APYs on their savings accounts, the High-Yield Savings’ new 1.55% APY simply isn't that impressive, but it’s a step 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.”
Three of Sallie Mae Bank’s CDs have new rates: 12-month (2.10% APY), 36-month (2.30% APY), and 60-month (2.65% APY). Any of these CDs can be opened with a $2.5k minimum deposit, with no stated balance cap.
|2.65%||$2,500||-||Sallie Mae Bank||60 Month CD|
|2.30%||$2,500||-||Sallie Mae Bank||36 Month CD|
|2.15%||$2,500||-||Sallie Mae Bank||12 Month CD|
These aren’t “wow-worthy” rates, by any stretch of the imagination, but they are good enough to appear in the up-coming CD Rates Summary, albeit in the lower half of each term-length category.
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 yesterday’s Forum post about latest rate increases at Sallie Mae Bank.
Headquartered in Salt Lake City, Utah, Sallie Mae Bank is an internet-only bank. 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.
Sallie Mae Bank has an overall health rating of "A+" at DepositAccounts.com, with a Texas Ratio of 2.03% (excellent) based on December 31, 2017 data. In the past year, Sallie Mae Bank has increased its total non-brokered deposits by $916.06 million, an excellent annual growth rate of 13.31%. 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 $21.6 billion.
How the Money Market Account Compares
When compared to the 172 Money Market accounts tracked by DepositAccounts.com that are available nationwide and don’t have low balance caps, Sallie Mae Bank’s Money Market Account APY ranks fourth.
To look for the best MMA rates, either nationwide or in your state, please refer to our Money Market Accounts rates table page.
How the High-Yield Savings Compares
When compared to the 203 Savings accounts tracked by DepositAccounts.com that are nationally available, Sallie Mae Bank’s High-Yield Savings APY currently ranks eighth.
To search for the best Savings account rates, both nationwide and state specific, please refer to our Savings Account rates table page.
The above rates are accurate as of 4/7/2018.