Sallie Mae CD rates are now up to 0.70% APY, the highest rate for a 12-month term!
Sallie Mae CD rates are now up to 0.70% APY! The why is sallie mae interest rate so high is a question that has been asked many times before.
salliemae.com is the source of this picture.[Update September 2021: Sallie Mae increased the rates on several of their 12-month and longer CDs. The most significant improvements were in their 12- and 36-month CDs, which now pay 0.60 percent and 0.70 percent annual percentage yields, respectively. Their money market rate was also increased by 0.10 percent APY to 0.40 percent APY. [All of their current rates are shown here.]
As the country’s biggest originator of student loans, Sallie Mae has become a household brand.
Sallie Mae was founded in 1972 as the Student Loan Marketing Association, and it handled both federal and private sector loans under government sponsorship.
Sallie Mae may be responsible for some of your Federal Stafford and Federal Perkins loans. Sallie Mae, on the other hand, began the process of becoming a private business in the 1990s and finished it in 2004, separating their operations from the government.
Their product portfolio now includes a wide variety of financial services, including private school loans and college savings plans, as well as banking and insurance services.
We’ll concentrate on Sallie Mae Bank’s savings side in this analysis. Sallie Mae is a member of the Federal Deposit Insurance Corporation and presently provides a number of FDIC-insured savings accounts to suit a range of requirements, including the SmartyPig savings account, certificates of deposit, money market, and high-yield savings accounts.
Please note that the SmartyPig savings account will be left out of this discussion. To learn more about that account, click the link above.
This article will teach you how to:
A certificate of deposit may be the way to go if you want to lock in an interest rate.
GOBankingRates recognized Sallie Mae as one of the top banks for certificates of deposit in 2020.
Despite the fact that their CD rates were formerly more competitive, they nevertheless provide returns that above the national average(s) for their respective periods by a significant margin.
According to recent FDIC statistics, the current national average for a 12 month CD is 0.14 percent APY, while the current national average for a 5 year CD is 0.24 percent APY.
As you can see from the table, there are a variety of options to select from, but the present returns are rather consistent among them.
There is a grace period.
You’ll have a 10-day grace period after your Sallie Mae CD matures, during which you may remove money from your CD account without penalty. If no action is made during the 10-day grace period, the funds will be automatically renewed into the same CD at the same rate as before.
CD Rates That Can’t Be Beat
The interest rate and annual percentage yield (APY) will be calculated on the day you fund the CD account, not when you open it. If you make your initial deposit within ten days of the account’s inception, you’ll get the higher interest rate of the day it was started or filled.
You will be paid this rate till maturity if your interest rate is established and fixed. Interest is calculated on a daily basis and credited to your account on a monthly basis.
If the deposit is received before 11:00 p.m. ET, interest starts to accrue the next business day. The deposit is deemed received the following business day if it is made after 11:00 p.m. ET on a business or non-business day.
Penalties for Early Withdrawal
The penalty is equivalent to 90 days of simple interest on the amount removed if your CD account has a maturity of 12 months or less. The penalty will be equivalent to 180 days of simple interest on the amount removed if the CD account has a maturity of more than 12 months.
The legislation may provide an early withdrawal penalty waiver in certain situations, such as the account holder’s death or incapacity.
Sallie Mae’s money market account is identical to their SmartyPig account, however it comes with a few more features. You may, for example, issue checks from a money market account while still earning a little higher interest rate.
A money market account, unlike a CD from Sallie Mae, does not need a minimum deposit. Unlike other money market accounts, where returns are tied to balances, the APY you earn applies to all balances.
Rates on Sallie Mae Money Market Accounts
|Balance for the Month||Deposit Requirement||APY|
To put the APY (above) into perspective, the national average for a money market account is now 0.11 percent. Aside from the decent return, this account is appealing due to the absence of both a minimum deposit and a monthly balance restriction. Keep in mind that money market rates are volatile and may alter without warning at any moment.
Limitations on Transactions
You may make a deposit or a withdrawal using the following methods:
- EFT, or
- Transferring data via a wire
According to Federal Regulation D, each calendar month or statement cycle may only include a maximum of 6 transfers or withdrawals (a mix of both). Please keep in mind that there is no limit to the number of transfers you may make from your Sallie Mae money market account to repay Sallie Mae debts.
Fee Schedule for Sallie Mae
- Check Order Fee: $5 (for orders made after account opening; orders submitted during account opening are free)
- Payment Termination Fee: $15
- Fee for Returned Checks: $5
- Fee for insufficient funds (NSF): $19.
- Fee for wire transfer: $20 (United States only). Please keep in mind that the receiving bank may impose a wiring fee. International wire transfers are not permitted by Sallie Mae.
Promotional Offers from Sallie Mae Money Market
Sallie Mae’s money market account clients may get a bonus interest rate and APY from time to time. The bonus rate for the promotional time will be paid regardless of your balance and will be stopped after the promotion period has finished. Your interest rate and annual percentage yield (APY) will then return to Sallie Mae’s current rates and yields. Unless otherwise indicated, promotions cannot be combined with other offers or promotions.
The SmartyPig and money market accounts have no minimum balance or deposit restrictions, and there are no monthly maintenance fees with the high return savings account.
Although the rate is smaller than that of a money market account, it still outperforms the current national average for FDIC-insured online savings accounts.
Rates for Sallie Mae High Yield Savings Accounts
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Daily rates are compounded and credited to your account on a monthly basis. As with the money market account the APY is variable and liable to change at any moment without notice.
Limitations on Transactions
You may make a withdrawal or a deposit using the following methods:
- EFT, or
- Transfer of Information via Wire
The high yield savings account has the same six transaction limit. According to federal regulations, this applies to both withdrawals and deposits (or a combination of both).
• Fee for a returned check: $5; Fee for a wire transfer: $20 (United States only). Please keep in mind that the receiving bank may impose a wiring fee. International wire transfers are not permitted by Sallie Mae.
Sallie Mae has just one physical site, which is their corporate headquarters in Utah. As a result, if you like in-person banking, this organization is probably not for you.
Sallie Mae, on the other hand, is worth considering if you value competitive rates and low-maintenance accounts that can be handled entirely online. Their prices are consistently among the best internet deals, and their accounts have won many accolades from third-party sites.
Sallie Mae’s app experience, according to user evaluations on both Android and iOS, varies from poor to comfortably above average (especially as far as banking apps go).
On Android, they get just 3.6 ratings, but a whopping 4.6 stars on the App Store.
Sallie Mae’s SmartyPig account has its own app and is likewise well rated.
In terms of deposit accounts, Sallie Mae offers a number of choices. All of their variable rate products have a $0 minimum deposit and no minimum monthly balance restriction, making them accessible to almost everyone.
Their CDs provide higher rates than usual, although greater APYs may be found at other online banks or credit unions.
The Sallie Mae CD Rates – Now up to 0.70% APY! is a post about the new Sallie Mae CD rates that have been released. Reference: synchrony bank cd rates.
Frequently Asked Questions
What happens when Sallie Mae CD matures?
When your CD matures, you will receive a check in the mail.
What is Sallie Maes interest rate?
Her interest rate is 5.25%.
What is a good APY rate for a CD?
The current APY rate for a CD is around 0.01%.
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