APY GUY: Maximize Your Savings & Earnings

Sallie Mae

Sallie Mae CD Rates – Now up to 5.55% APY!

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Sallie Mae became a household name as the largest originator of student loans in the country.

Founded in 1972 as the Student Loan Marketing Association, Sallie Mae operated with government sponsorship, handling both federal and private sector loans.

In 2004, Sallie Mae became a fully private sector company without GSE (Government-Sponsored Enterprise) status.

Today, their product suite covers a large range of financial services and products – from private education loans and college savings programs to banking services and insurance programs.

In this review, we will focus on the FDIC-insured deposit accounts offered by Sallie Mae Bank along with the Sallie Mae CDs (certificates of deposit) offered via the Raisin portal.

To see if one of their CDs, savings account or money market account is right for you, continue reading below.

Sallie Mae CD Rates + Account Details

salliemae.com

Sallie Mae offers 11 standard CDs (certificates of deposit) with terms ranging from 6 months to 5 years.

All of their CDs are federally insured by the FDIC up to the applicable limits and come with a minimum deposit requirement of $2,500.

CD Rates

TermAPY
6 months5.00%
9 months5.20%
11 months5.25%
12 months5.50%
13 months5.50%
15 months5.50%
18 months5.55%
24 months4.65%
30 months4.00%
36 months4.00%
60 months4.00%
APY = Annual Percentage Yield

To put Sallie Mae’s CD rates (above) in perspective, the current national average for a 12 month CD sits at 1.72% and the current average for a 5 year CD sits at 1.37% according to FDIC data.

How Do Sallie Mae’s CD Rates Compare?

Take a look at the table below to see how Sallie Mae’s best CD rate compares with the best CD rates from other FDIC-insured online banks.

BankBest CD Rate (APY)
Citizens Access5.00%
First Internet Bank5.35%
Ivy bank5.00%
TotalDirectBank5.46%
Sallie Mae5.55%
CD rates surveyed on August 11, 2023.

How Much Can You Make with a Sallie Mae CD?

The amount of money you can earn with a Sallie Mae CD depends on your deposit size, the CD term you select and its APY (annual percentage yield). Take a look at the table below showing potential earnings based on a $25,000 deposit.

CD TermAPYEarnings
9 months5.20%$968.80
18 months5.55%$2,109.87
36 months4.00%$3,121.60
60 months4.00%$5,416.32
Earnings = Sum of all interest payments through maturity.

Grace Period

Upon the maturity of your Sallie Mae CD, you’ll have a 10 calendar day grace period during which you can withdraw funds from your CD account without penalty. If no action is taken within the 10 day grace period, the funds will automatically renew into the same CD with its current rate.

Locking-In Rates

The interest rate and APY will be determined on the date you fund the CD, not the date you open the account. However, you will receive the higher interest rate of the date your account opened or was funded if the first deposit occurs within ten days from the opening date.

Once your interest rate is set and fixed, you will be paid this rate until maturity. Interest is compounded daily and credited to your account monthly.

The interest begins to accrue on the same business day if the deposit is received before 11:00 PM ET. If the deposit occurs after 11:00 PM ET on a business day or non-business day, the deposit is considered received on the next business day.

Early Withdrawal Penalties

If your CD account has a maturity of 12 months or less, the penalty is equal to 90 days of simple interest on the amount withdrawn. If the CD account has a maturity greater than 12 months, the penalty will equal 180 days of simple interest on the amount withdrawn.

In circumstances such as death or incompetence of the account holder, the law may permit an early withdrawal penalty waiver.

Sallie Mae CD Rates Powered by Raisin

For better CD rates from Sallie Mae, you may want to consider opening a certificate through the Raisin portal (formerly SaveBetter).

Raisin is a fintech company that has partnered with several FDIC-insured banks and NCUA-insured credit unions to offer special deposit accounts, generally with oddball terms and slightly better yields.

Raisin helps consumers in the United States and the European Union access a number of competitive FDIC-insured deposit products from various banks and credit unions. Consumers can then manage all of their CDs and deposit accounts from one single account – the Raisin account. This also increases overall FDIC coverage leveraging the insurance from multiple institutions.

CD Rates via Raisin

CD TermAPY
10 months5.30%
14 months5.40%
10 month No Penalty4.70%
14 month No Penalty4.75%
APY = Annual Percentage Yield

If you open a CD with Sallie Mae through Raisin the minimum deposit requirement is just $1.00.

The “No Penalty” CD is a liquid CD without any early withdrawal fees meaning you can access your funds anytime penalty free.

Money Market Rate + Account Details

Sallie Mae’s money market account is similar to their SmartyPig account but with a few more features. For example, you can write checks from the money market account plus earn a slightly higher rate.

Unlike Sallie Mae’s CDs there are no minimum deposit requirements to open a money market account. The APY you receive applies to all balances as well, which is different from most money market accounts that tie yields to balances.

Money Market Rate

Monthly BalanceMinimum DepositAPY
$0$04.75%
APY = Annual Percentage Yield

To put the APY (above) in perspective, the current national average for a money market account sits at roughly 0.63% and a savings account sits at 0.42% according to FDIC data.

That said top yields from online banks are now hovering around the 5.00% APY mark.

Transaction Limitations

You may deposit or withdraw money via:

  • Check,
  • EFT, or
  • Wire Transfer.

There is a maximum of 6 transfers or withdrawals (a combination of either) during any calendar month or statement cycle per Federal Regulation D. Please note that if using your Sallie Mae money market account to repay loans at Sallie Mae, there is no limit in the number of transfers you may make.

Sallie Mae Fee Schedule

  • Check Order Charge (for orders placed after account opening; orders placed at the time of account opening are free): $5
  • Stop Payment Charge: $15
  • Returned Check Fee: $5
  • Insufficient Funds (NSF) Fee: $19
  • Wire Fee: $20 (United States only). Please note that the receiving bank may charge a wire fee on their end. Sallie Mae will not allow international wire transfers.

High Yield Savings Account Rate + Details

The high yield savings account is similar to the SmartyPig and money market account in that it has no minimum balance/deposit requirements or monthly maintenance fees.

The rate is slightly lower than the money market account, but still handily beats the current national average for FDIC-insured online savings accounts.

High Yield Savings Rate

Monthly BalanceMinimum DepositAPY
$0$04.50%
APY = Annual Percentage Yield

Rates are compounded daily and credited to your account monthly. As with the money market account the APY is variable and subject to change at any time without notice.

Transaction Limitations

You may withdrawal or deposit money via:

  • Check,
  • EFT, or
  • Wire Transfer

The same 6 transaction limitation applies to the high yield savings account. This applies to both withdrawals and deposits (a combination of either) per federal regulation.

Fees

• Returned Check Fee: $5
• Wire Fee: $20 (United States only). Please note that the receiving bank may charge a wire fee on their end. Sallie Mae will not allow international wire transfers.

Banking Experience and Customer Sentiment

Sallie Mae has just one physical location in Utah, which is their headquarters. So if you value in-person banking this institution likely isn’t for you.

That said, if you value respectable rates and low maintenance accounts that can be managed 100 percent digitally then Sallie Mae deserves your consideration. Their rates are regularly among the top online offers available and their accounts have received a number of awards from third party sites.

According to user reviews on both Android and iOS apps, Sallie Mae’s app experience ranges from mediocre to comfortably above average (especially as far as banking apps go).

They receive 3.8 stars on Android and an impressive 4.5 stars on the App Store.

Sallie Mae’s SmartyPig account has a separate app and also receives high marks.

SmartyPig Savings Account – Up to 2.25% APY

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[📌 Update September 2022: Despite being a rate leader when rates were low last year and in early 2022, the SmartyPig savings account by Sallie Mae hasn’t been able to raise their rates quickly enough to keep up with many of the top yielding, FDIC-insured online savings accounts on the market today. See rates below.]

image credit: smartypig.com

Sallie Mae might be known best for its private student loan operation, but did you know they also sell competitive deposit products – and have been since 2005?

Sallie Mae Bank was named a top bank of 2020 by GOBankingRates for its rewarding and accessible savings accounts. Sallie Mae deposit products — which include savings accounts, money market accounts, and CDs — have fairly high interest rates without any of the tedious restrictions or fees associated with many banks.

Among Sallie Mae’s suite of FDIC-insured deposit products, the SmartyPig savings account is a particularly popular choice. 

The SmartyPig savings account has unique set of tools and generous APY (annual percentage yield) that benefit savers who fit one of the following profiles:

  1. new savers,
  2. individuals that need to get into the habit of regularly saving,
  3. people with financial goals that could use some help with organization and/or motivation,
  4. people who want to earn a competitive interest rate.

If you’re considering the SmartyPig Savings Account, you’ll want to read our comprehensive review of their product, its tool set, the current rates and potential bonus offers.

SmartyPig Interest Rates + Account Details

The interest earned from your SmartyPig account compounds daily and credits monthly. Your funds are FDIC-insured up to $250,000 per individual or $500,000 per joint account. See the table below for current rate tiers.

SmartyPig Savings Rates

BalanceAPY
$0.01 – $2,5002.25%
$2,500.01 – $10k2.25%
$10,000.01 – $50k2.15%
$50,000.01 +2.10%
APY = annual percentage yield

To give the yields above some perspective, the national average for:

  • a savings account sits at just 0.17% APY,
  • a money market account sits at 0.18% APY
  • and an interest checking account sits at a paltry 0.04% APY, according to FDIC data.

That said, following the FED third consecutive rate hike of 0.75% this summer on September 21st, some of the top yielding online savings accounts and money market accounts are now approaching the 3.0% APY mark.

The account comes with no minimum opening deposit requirement or minimum balance requirements. Plus, you’ll never be charged monthly maintenance or low balance fees.

There are also zero penalties for failing to meet a savings goal by the target date you’ve set. If this happens, just log-in to your account and change the target date. You may also transfer the sum to a different goal.

Once a goal has been reached, automatic transfers put toward that goal will be halted, but you will still earn the advertised rate on your sum.

Account transactions may not exceed 6 per statement cycle, per federal regulation D. Excessive withdrawals will not be permitted, but you will not be charged for attempting them. Just avoid them so that your account is not closed.

Account balances may not exceed $250,000 unless direct deposits over this maximum are automatically made, in which case greater balances will be accepted.

What is SmartyPig

SmartyPig is a free online, high-yield savings account available through Sallie Mae Bank.

It is FDIC-insured up to the federally allowed limit of $250,000 and available to any U.S. citizen over the age of 18 with a social security number and an external account that can fund it (more details on eligibility requirements below).

Advertised as an online “piggy bank,” this nontraditional savings account is intended to help you save for various achievable financial goals. It does this by giving you a user-friendly platform through which you can organize your goals and track your progress. The key features of this account that enable your savings to build are:

  1. Automatic transfers. Once you’ve set up a new savings goal, say for a downpayment to a car, you then set up automatic transfers from your external checking account that slowly seed this initiative.
  2. Fantastic APY. The money that gets auto-transferred to fund your goal earns a phenomenal APY that sits well above the current national average for a savings account.

The philosophy behind this account is that concrete goals are easier to save for than saving just for the sake of saving, which can feel daunting and at times unrewarding.

How to Open a SmartyPig Account

Opening a SmartyPig savings account is simple and painless.

Just visit the SmartyPig website (note this is a separate domain and not the Sallie Mae website) and click “Start Saving” in red on the home screen.

From there, go through the 4-step registration process that will ask you for your personal information, social security number, and driver’s license number. 

As soon as your account is ready to go and your chosen external account is linked, you can fund it with as little as a penny to begin earning interest and creating savings goals.

Schedule monthly or biweekly recurring contributions from your external account into whichever goal(s) you choose.

Almost anyone qualifies for a SmartyPig account. You just need to be at least 18 years old and have an external checking or savings account that you can use to fund your Savings Goals. You also need to be a U.S. citizen, resident with a social security number, or permanent U.S. resident alien with a green card or social security number to open an account. 

If you have issues setting up or servicing your account, call customer service at (811) 751-6884 during their business hours of 8 AM to 8 PM Eastern Time Monday through Friday or send a secure message through the Message Center (if you already have an account).

Setting Up SmartyPig Savings Goals

What makes the SmartyPig account unique is the savings goal feature. A simple interface that allows you to set up specific goals and then fund them in an ongoing and manageable way.

These goals are flexible and can be tweaked or canceled at any time, and money can be moved between goals as you please. The balance of your entire account will earn interest regardless of your progress toward goals or how many goals you have set up. 

Each distinct savings goal must be for at least $50 but not greater than $250,000. Recurring contributions, which may be monthly or biweekly, need to be equal to at least $10 but not greater than $50,000. You need to link 1 and only 1 external funding source, either a checking or savings account, to fund this account. This account is not a bank but a savings vehicle that earns interest and is not meant to replace a savings or checking account.

SmartyPig Bonus Offers

SmartyPig Savings Accounts have a few other perks built in that many savings accounts do not, including opportunities for referral bonuses and a bonus redemption program through Amazon. Refer a friend to SmartyPig and earn a reward of $10 once they successfully open and fund a new savings account. 

SmartyPig is partnered with Amazon, which makes it possible for you to order Amazon gift cards valued anywhere from $5 to $500 using SmartyPig funds. This isn’t an exceptional offer but it would allow you to save some time if an item you’re putting money towards is available for purchase through Amazon.com. This would simply allow you to buy it instantly once your goal is reached rather than having to wait for a transfer to your external funding account to post.