Sallie Mae CDs
APY Range
Minimum Deposit
Terms
Our Rating
Sallie Mae CD Rates
Sallie Mae Bank provides some of the most attractive CD rates available in the market.
With a selection of 11 certificate of deposit (CD) terms spanning from six months to 60 months, Sallie Mae Bank ensures a range of options to suit various investment needs. Whether you want to put your money in short-term CDs or want to invest in long-term CDs, Their CD rates consistently rank among the most competitive CDs among online banks.
CD Term | APY |
|---|---|
6 Months | 4.80% |
9 Months | 4.85% |
12 Months | 4.95% |
18 Months | 4.75% |
24 Months | 4.50% |
30 Months | 4.00% |
36 Months | 4.00% |
60 Months | 4.00% |
To open a CD, a minimum deposit of $2,500 is required. While Sallie Mae's CD rates are on par with the leading online banks, it's worth noting that certain other banks offer CDs with lower or no minimum balance requirements.
Early Withdrawal Fees And Grace Period
Sallie Mae imposes penalties for early withdrawals from their CDs. The specific penalty depends on the maturity of the CD:
- CDs with a maturity of 12 months or less: 90 days' simple interest
- CDs with a maturity greater than 12 months: 180 days' simple interest
In cases where the required forfeiture amount exceeds the interest earned or paid on the CD, the difference will be deducted from the principal
CD Term | APY |
|---|---|
6 Months | 90 days of interest |
9 Months | 90 days of interest |
12 Months | 90 days of interest |
18 Months | 180 days of interest |
24 Months | 180 days of interest |
36 Months | 180 days of interest |
48 Months | 180 days of interest |
60 Months | 180 days of interest |
Here's how the grace period works for Sallie Mae CDs:
- Automatic Renewal: Your CD will automatically renew when it reaches maturity.
- Grace Period: You have a ten (10) calendar day grace period starting from the first day of maturity, including the following nine (9) days.
- Penalty-Free Withdrawal: During the grace period, you can withdraw funds from your CD without incurring any penalties.
- Preventing Renewal: You can prevent the automatic renewal by either withdrawing the funds from your CD at maturity or within the grace period, or by notifying Sallie Mae within the grace period that you don't want the CD to renew.
Are Sallie Mae CD Rates Competitive?
Sallie Mae CD rates are remarkably competitive, surpassing those offered by other banks and credit unions. With a wide range of terms to choose from, Sallie Mae consistently ranks among the top choices for opening a CD account.
Let's compare Sallie Mae CD rates with some of the highest rates available nationwide to demonstrate its competitiveness. It becomes evident that Sallie Mae offers one of the most appealing rates in the market.
However, Sallie May lacks a higher minimum deposit compared to other banks.
CD APY Range | Minimum Deposit | |
|---|---|---|
Marcus | 4.00% – 5.05% | $500 |
Barclays Bank | 3.50% – 5.30% | $0 |
Quontic Bank | 4.30% – 5.30% | $500 |
PenFed Credit Union | 2.00% – 4.35% | $1,000 |
Alliant Credit Union | 5.08%-5.20% | $1,000 |
Sallie Mae | 4.00% – 4.95% | $2,500 |
Bread Financial | 4.25% – 4.75% | $1,500 |
Capital One | 4.00% – 5.10% | $0 |
Discover Bank | 2.00% – 4.70% | $2,500 |
CIT Bank | 0.30% – 3.50% | $1,000 |
Ally Bank | 3.00% – 4.50% | $0 |
Citi Bank | 0.05% – 4.75% | $500 |
Connexus Credit Union | 3.51% – 4.85% | $5,000 |
Merrick Bank | 4.05% – 5.25% | $25,000 |
BMO Harris | 0.05% – 4.50% | $1,000 |
Synchrony Bank | 2.05% – 5.15% | $0 |
Alliant Credit Union | 5.08%-5.20% | $1,000 |
Lafayette Federal Credit Union | 4.32% – 5.04% | $500 |
TD Bank | 1.00% – 5.00% | $250 |
Navy Federal | 4.85% | $1,000 |
LendingClub | 4.00% – 5.15% | $2,500 |
About Sallie Mae Bank
Sallie Mae is well-known for its private student loans, but you might not be aware that it's also an online bank offering various savings and personal banking products. One of the main benefits of Sallie Mae is the high savings rates it offers, not only on CDs but also on savings accounts.
Sallie Mae Bank, a division of SLM Corporation, provides competitive rates that are accessible to almost everyone. It's an FDIC insured institution headquartered in Salt Lake City. The BBB gives Sallie Mae an A+ rating, the highest rating available
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FAQs
How is interest calculated for Sallie Mae CDs?
Interest on Sallie Mae CDs is compounded daily and credited to your account on a monthly basis.
What is the main drawback of Sallie Mae CDs?
The primary drawback is the high minimum deposit requirement, which may be challenging for some customers.
What is the main benefit of Sallie Mae CDs?
The key advantage is the competitive interest rate offered, along with the flexibility of various terms. This allows customers to employ strategies like CD laddering and save for both short and long-term financial goals.
How We Rate Certificates of Deposits: Our Methodology
The Smart Investor team has thoroughly examined certificate of deposit (CD) offerings from various banks, considering multiple factors to provide a comprehensive evaluation. Here's how we rated them across four key categories:
-
CD Rates (50%): We meticulously analyzed the interest rates offered by each bank on their certificate of deposit (CD) products. Higher ratings were awarded to banks offering competitive rates that provide maximum returns for customers' investments. Factors such as the yield curve, current market conditions, and consistency of rates were considered to assess the attractiveness of each bank's CD rates.
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CD Features (30%): This category evaluated the features associated with each bank's certificate of deposit offerings. Factors considered include the variety of terms available, early withdrawal penalties, minimum deposit requirements, and any additional features or benefits. Higher ratings were given to banks offering a diverse range of CD terms, reasonable early withdrawal fees, and flexible options to meet customers' investment needs.
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Customer Experience (10%): A positive customer experience is paramount, even when investing in CDs. We assessed each bank's performance in this area, considering factors such as the ease of opening a CD account, the responsiveness of customer service, and overall user satisfaction. Higher ratings were assigned to banks with efficient account opening processes, helpful customer support, and a track record of satisfying customers.
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Bank Reputation (10%): The reputation of a bank is a critical consideration when investing in CDs. We evaluated each bank's reputation based on factors such as financial stability, regulatory compliance, and public perception. Higher ratings were given to banks with a solid reputation for reliability and trustworthiness, ensuring customers' investments are safe and secure.
By considering these categories and assigning appropriate weights to each, our review aims to provide valuable insights to help individuals make informed decisions when investing in certificate of deposits.
