SallieMae Bank Raises Money Market And 60-Month CD Rates

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Deal Summary: Money Market Account (1.30% APY), no minimum or maximum deposit requirements. 60-month CD (2.35% APY), 12-month CD (1.50% APY), $2.5k minimum deposit.

Availability: Nationwide (internet bank)

With today’s rate increase on its Money Market Account (1.30% APY), SallieMae Bank has become the latest bank to raise the APY on a nationally available money market account. In the last seven months, the Money Market Account (MMA) has experienced three rate increases, adding a total of 40 bps.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.30%--Sallie Mae BankMoney Market
Accounts mentioned in this post. Rates as of August 23, 2017.

There is no minimum or maximum balance requirement for SallieMae 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, with checks 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).

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

ACH Transfers

While I’ve mentioned this in the past, it still bears repeating, as it’s important to many DA readers. The good news is that SallieMae Bank's "no limit" policy on the dollar amount of electronic transfers is still in effect. The not-so-good news is there is a long hold period for deposits.

  • $5k or less – New account 10 business days; Existing account 5 business days
  • $5k+ – New and existing accounts 10 business days

CDs

In a climate of rising rates for shorter term CDs, SallieMae Bank is one of the few financial institutions to recently raise the rate on a long-term CD. Following today’s 55 bps increase, the 60-month CD is now offering a competitive 2.35% APY. SallieMae Bank also raised the rate on its 12-month CD (1.50% APY). The minimum opening deposit for either CD is $2.5k, with no stated balance cap.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.35%$2,500-Sallie Mae Bank60 Month CD
1.50%$2,500-Sallie Mae Bank12 Month CD
Accounts mentioned in this post. Rates as of August 23, 2017.

The new 2.35% APY is the highest rate for the 60-month CD in more than six years. For the past 14 months, the APY held at a fairly unimpressive 1.80%. In the previous three months, 25 bps have been added to the 12-month CD.

As stated on SallieMae 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.

The mild six month EWP increases the 60-month CD’s competitiveness. Using DA’s Early Withdrawal Penalty Calculator, you can determine what the effective yields would be, with yields available on a month-to-month basis. For example, closing the 60-month CD at 20 months would result in an effective yield of 1.65% APY.

Thanks to DA reader, buckeye61, for the Forum post about Sallie Mae Bank’s latest rate increases.

Availability

SallieMae Bank is an internet-only bank, with its headquarters located in Salt Lake City, Utah. Accounts are available to individuals who have a Taxpayer Identification Number (usually a Social Security Number) and a physical address in the United States. Opening any account, including MMAs, CDs, 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 1.42% (excellent) based on March 31, 2017 data. In the past year, SallieMae Bank has increased its total non-brokered deposits by $2.05 billion, an excellent annual growth rate of 39.4%. Please refer to our financial overview of SallieMae Bank (FDIC Certificate # 58177) for more details.

When most people hear "SallieMae," they 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 $19 billion.

How the Money Market Account Compares

When compared to the 175 Money Market Accounts tracked by DepositAccounts.com that require a similar minimum balance and are available nationally, Sallie Mae Bank’s Money Market APY currently ranks second.

To search for Money Market rates, both nationwide and state specific, please refer to the Money Market rates section of DepositAccounts.com or our new Rates Map page.

How the CDs Compare

When compared to the 202 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, Sallie Mae Bank’s 12-month CD APY currently ranks third.

When compared to the 180 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, Sallie Mae Bank’s 60-month CD APY currently ranks fourth.

*Note: Melrose Credit Union is currently operating under an NCUA conservatorship.

The above rates are accurate as of 7/12/2017.

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

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

Comments
buckeye61
buckeye61   |     |   Comment #1
Been a customer for many years and have been very happy with Sallie Mae Bank overall. One comment about the "Long times on ACH Transfers". First of all, they are very fast when you transfer OUT of Sallie Mae(Next business day)to your linked external bank. Second, I usually PUSH money into my Sallie Mae account to avoid ANY holds on deposit.....how effective this is depends on the transfer speed of your linked account at another financial institution.
slovokia
slovokia   |     |   Comment #2
"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."

I have a savings account at Sallie Mae that has a zero balance and no activity for over 5 years - it still shows up in my list of accounts so I would say in practice Sallie Mae does not enforce this rule (at least under the condition that at least one of your accounts with them is considered active by these criteria).
BTW when I check the interest rate of my MM account it still shows up as 1.15% - I assume this will update tonight.
Att
Att   |     |   Comment #4
Reserve the right means if they want to but they may not. I had a Sallie Mae savings that Upromise would match 10% of what I earned and deposit it into my savings account. They ended the match last year and closed the account.
Crooked H
Crooked H   |     |   Comment #3
Fed .25 .banks raise .05 sheeesh
Sperry8
Sperry8   |     |   Comment #6
Well Sallie Mae - looks like you just got my money... easier than opening a new account with CIT Bank who I already bank with but makes you go through hoops to get the higher rate.
Att
Att   |     |   Comment #8
I have a regular CIT savings I keep open as I still have a CD with them. What I did is just opened a new HYSA savings account with $15,000 new money. All I had to do was logon and it took 5 minutes. I also get the $100 bonus. I'm using g dollar direct for most of my savings. After I get the $100 I'll close the account unless they are offering a higher rate than dollar direct
Att
Att   |     |   Comment #10
Dollar direct is paying a little more 1.4% now. Nice to see short term rates going up at least. Looks like the competition is raising these short term rates. Just a couple of months back 1.05% was a top rate on savings accounts.
RJM
RJM   |     |   Comment #7
I haven't opened a new acct anywhere in some time and I really didn't want to. But I'm over the limit at Ally and Discovers 1.10% and 2.25% just aren't as good as Sallie Mae.

I can get a 2.3% 5 year CD at my broker for some of it but I still need somewhere for my liquid cash needs.

I hope they remain competitive on the MMA.
Bubblicious
Bubblicious   |     |   Comment #9
Synchrony Bank needs to raise their rates. Their savings account is paying 1.15%.
Att
Att   |     |   Comment #11
Just took most of my funds out of Synchrony and put in dollar. Took 3 business days for them to send the funds. I didn't have much with Synchrony in the savings but use the savings when I close CDs with them. Kedoing $50 in the synchrony account
SallieMae Bank Ups Money Market Account Rate
Deal Summary: Money Market Account (1.15% APY); no minimum or maximum deposit requirements.

Availability: Nationwide (internet bank)

SallieMae Bank has just raised the rate on its Money Market Account (1.15% APY). In the past six months, the MMA has experienced two rate increases, which have added a total of 25 bps.

SallieMae Bank's MMA is still not a rate leader, but it’s nice to see a money market rate increase from a major internet bank. With the last Fed rate hike just two days old, we will hopefully...

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Deal Summary: Money Market Account (1.05% APY); no minimum or maximum deposit requirements.

Availability: Nationwide (internet bank)

SallieMae Bank has ended the week by increasing the rate on its Money Market Account (1.05% APY) by 15 basis points.

There is no minimum or maximum balance on SallieMae 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...

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Availability: Nationwide (internet bank)

SallieMae Bank recently discontinued its High Yield Savings account. The only savings account now offered by SallieMae Bank is their Upromise GoalSaver Account (0.85% APY), which is part of the new Upromise Rewards program.

(Note: I had heard that SallieMae Bank was making a shift in its marketing strategy, re-focusing on student financial matters. The advertisements for the Upromise Rewards program - including a mortar board hat above the “U” in Upromise - seems to indicate that rumor may have been true.)

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Availability: Nationwide (internet bank)

Last October, SallieMae Bank offered a Money Market account (MMA) promotion, with a rate guarantee for the first six months. That promotional lasted less than a month.

SallieMae Bank has a new MMA promotion in place, and according to the fine print,

The current non-promotional rate is 0.90% APY, which would result in a blended APY of 1.05% APY for a twelve-month period, assuming the non-promotional rate does not change during the first year.

There is no minimum or maximum balance on SallieMae Bank’s MMA...

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UPDATE 11/5/2015: The promotional rate is no longer available.

Availability: Nationwide

SallieMae Bank recently began offering a Money Market account promotional rate of 1.24% APY, guaranteed for the first six months. Following the initial six months, the rate will revert to the non-promotional rate (currently 0.90% APY).

Assuming the non-promotional rate does not change for the first year, the blended APY will be 1.07% APY.

There is no minimum or maximum balance on SallieMae Bank’s Money Market and there are no monthly fees associated with the account. Complete...

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