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

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Deal Summary: 18-month CD (2.80% APY), 12-month CD (2.75% APY), $2.5k minimum deposit

Availability: Nationwide (internet bank)

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.45%$2.5k-Sallie Mae Bank12 Month CD
2.45%$2.5k-Sallie Mae Bank18 Month CD
Rates as of September 17, 2019.

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.15%--Sallie Mae BankMoney Market
Rates as of September 17, 2019.

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 63rd 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.

Related Pages: 1-year CD rates, nationwide deals, Internet banks

Comments
buckeye61
buckeye61   |     |   Comment #1
Good to see, but not sure how long they'll last. Big CD rate cuts this morning by Capital One and Barclays Bank, and with the FED likely to cut the overnight rate next month which will put more downward pressure on shorter-term maturities.
Robb
Robb   |     |   Comment #3
Quite the slash in Capital One CD levels...based on what you now see there you'd think we were back in 2015. Ouch!
jjflyman
jjflyman   |     |   Comment #2
Why do I get the feeling that these are sucker plays? Get people to bite on short term CD's now, and when the term is up in 12 months, CD's will be significantly lower across the board.
My strategy at this point is to go long (5 years) at 3+% and lock it in. Next year at this time those 3% CD will look good
Robb
Robb   |     |   Comment #4
I agree...short term CD's have been sucker plays for the most part of the past couple of years (less maybe a once in a blue moon Keesler deal). Short term CD's ensure you typically get a lower rate and have to do more work on the back end once it matures. The better focus has been to seek out higher long term deals with reasonable EWP's.
willy12
willy12   |     |   Comment #5
I don't think anybody knew what rates were going to do a year or two ago so nothing "sucker" about them. Unless you are going to forget you had a CD and let it rollover to a low rate. Something i have never done.
jjflyman
jjflyman   |     |   Comment #6
I don't think you understood my post
???
???   |     |   Comment #7
You nailed It
Shelby1
Shelby1   |     |   Comment #8
Open GTE Financial CU CD's with terms from 18 months to 60 month..with APY range from 2.27% to 3.04%, and these are all ADD ON cd's entire length of CD with only a $20 minimum or greater deposit. $500 minimum to open and can be pulled from credit card for all CD's with no additional charge.Account can be opened in hours / and in 24 hours account is updated on the GTE website showing all CD's funded and dividend rate applied to all CD's. Think of the different options you may have with purchasing these add on cd's over the next 5 years and you may come to the same conclusion I came to...
Sallie Mae Bank Money Market Rate Increases To 2.30% APY
Deal Summary: Money Market, 2.30% APY on all balances

Availability: Nationwide (internet bank)

In early November, Sallie Mae Bank raised the rates on its Money Market, High-Yield Savings, and several CDs, keeping the APYs within striking distance of the rate leaders. Since that time, Sallie Mae Bank hasn’t raised any rates, and in fact, it actually lowered its 12-month and 24-month CD rates in early February. Consequently, Sallie Mae Bank has fallen behind as competitor banks have been increasing rates.

Yesterday saw Sallie Mae Bank’s first rate increase in...

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SallieMae Bank Money Market APY Increased
Deal Summary: Money Market (2.20% APY); High-Yield Savings (2.10% APY); CDs – 12-month (2.70% APY), 24-month (2.90%), and 60-month (3.10% APY).

Availability: Nationwide (internet bank)

With a variety of rate increases this yesterday morning, SallieMae Bank is continuing to keep its product line APYs competitive. While the individual rate increases haven’t been exceptional, the cumulative effect has kept SallieMae Bank within striking distance of the rate leaders.

Money Market Account

The Money Market Account (MMA) continues to be SallieMae Bank’s most competitive deposit account with its current 2.20% APY....

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Sallie Mae Bank Ups Money Market Rate
Deal Summary: Money Market (2.00% APY), 12-month CD (2.65% APY), and High-Yield Savings (1.85% APY).

Availability: Nationwide (internet bank)

As I’ve stated in earlier blog posts, SallieMae Bank has continued to increase the rates on its Money Market account, High-Yield Savings account, and several CDs since beginning of the year. While the individual rate increases haven’t been exceptional, the cumulative effect has kept SallieMae Bank within striking distance of the rate leaders.

Money Market Account

The Money Market Account (MMA) continues to be SallieMae Bank’s most competitive deposit account,...

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Sallie Mae Bank Money Market Rate Raised
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

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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....

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