SallieMae Bank 12-Month CD Earns 2.35% APY

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Deal Summary: 12-month CD, 2.35% APY, $2.5k minimum deposit

Availability: Nationwide (internet bank)

When I see a good rate these days, my first thought is, “I wonder how long it will last.” The only indication I could get from a SallieMae Bank CSR concerning the 12-month CD (2.35% APY) was, “we haven’t received any notification of an upcoming rate change.” While not exactly a guarantee of no impending rate change, that’s the only information CSR had to offer. Like all of SallieMae Bank’s CDs, the 12-month CD can be opened with a $2.5k minimum deposit, with no stated balance cap.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.10%$2.5k-Sallie Mae Bank12 Month CD
Rates as of November 18, 2019.

SallieMae Bank is following a trend I’ve noticed being used by several large banks: offering the same APY on different term lengths. In addition to the 12-month CD, the 2.35% APY is also offered on the 30-, 36-, and 60-month CDs.

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

If your CD has a maturity term of 12 months or less,
the penalty will be equal to 90 days’ simple interest.

Earned interest can be withdrawn monthly, quarterly, yearly, or at maturity. Interest disbursements will be sent electronically to the linked account specified when the CD is opened. Maturing funds will also be distributed in the same fashion.

SallieMae Bank CDs have a ten calendar day grace period, beginning 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.

Availability

Headquartered in Salt Lake City, Utah, SallieMae Bank is a “pure” internet bank, having 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 2.16% (excellent) based on June 30, 2019 data. In the past year, SallieMae Bank has increased its total non-brokered deposits by $1.32 billion, an excellent annual growth rate of 15.57%. 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 62nd largest bank in the country, with assets in excess of $29.4 billion.

How the CD Compares

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 first.

Interest RateLength of TermCredit Union/Bank
2.35% APY12-Month CDSallie Mae Bank
2.30% APY1-Year CDLive Oak Bank
2.25% APY12-Month CDTAB Bank

The above rates are accurate as of 11/7/2019.

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
HMBradley?
HMBradley?   |     |   Comment #1
Sorry it’s not related to this, but can Ken or a member start a post about the HMBradley 3% savings account?
willy12
willy12   |     |   Comment #2
Seems complicated for those without a paycheck.

http://money.com/money/5661879/online-bank-best-interest-rate-hm-bradley/
deplorable 1
deplorable 1   |     |   Comment #3
Sounds good except it's another fintech startup with a wait list. No guarantee it will ever startup or what the rate will be when it does. Look at what Robinhood's rate was once it was launched. It's worth keeping a eye on though 3% on liquid cash is very good.
arbitrage
arbitrage   |     |   Comment #4
It could be a potential arbitrage situation for someone who has a paycheck and substantial savings, but doesn't normally save 20% of their gross pay in a regular bank account because they prefer to take advantage of tax-advantaged accounts from their employer + IRA contributions. Direct deposit into the HMB, but slowly drain down other accounts for living expenses. It would be much better if HMB took into account direct deductions into retirement accounts as part of the saving threshold though.
111
111   |     |   Comment #5
There seem to be a lot of moving parts and potential gotcha's in this. As stated above, how long a wait is the wait list, and what if they flame out and never actually launch?

I see that their "sign me up" webpage collects your name, email, monthly income and perhaps more (I did not go any further, for now). Wonder if the start-up phase of their business model involves simply gathering then selling that info?
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Availability: Nationwide (internet bank)

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