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Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.
Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
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APY = Annual Percentage Yield. APYs are subject to change at any time without notice.
If you're looking for an online bank with promising products, Sallie Mae Bank might be a good fit. You've probably heard of Sallie Mae because of its loans. However, its banking division offers deposit accounts featuring high-yield interest with no deposit requirements. This review surveys Sallie Mae's bank accounts and services so you can see how it stacks up to the competition and whether it's right for you.
Sallie Mae
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Bottom Line
Sallie Mae Bank is an online bank with a range of interesting products. Its savings accounts have competitive APRs, with no deposit requirements or monthly maintenance fees.
Pros
Competitive rates on most accounts
No minimum opening deposits
No monthly maintenance fees
Check-writing privileges with MMA
Cons
No ATM cards
No physical bank branches
SmartyPig Account rate decreases on larger balances
Sallie Mae Bank savings accounts
If you're trying to build an emergency fund or save for another goal, both of Sallie Mae's savings products are a great place to start.
Sallie Mae High-Yield Savings Account
Sallie Mae High-Yield Savings Account has a decent APY with no monthly fees or minimum balance requirements. To be sure, this account doesn't have the highest APY we've seen, but it's not bad considering you won't have to maintain a monthly balance to get it.
Customers can manage their funds through online account access or the bank's mobile app.
SmartyPig Account
Think of SmartyPig as an online piggy bank for adults. It works like a traditional savings account, but allows customers to set and track savings goals. In the past, SmartyPig rates were among the best in the industry, but in today's high-rate environment, they're no longer competitive. Plus, there's a $250,000 maximum balance allowed.
This savings account has no monthly fees and no minimum balance requirements. The SmartyPig Account's goal-oriented structure makes it a great vehicle for those with specific goals in mind.
Compare savings rates
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
up to 4.60%²
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
4.25%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
5.15%
Rate info
To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.
CDs typically offer higher rates than traditional savings accounts. If you're looking for guaranteed returns, a CD is a good way to go. Sallie Mae CDs come with flexible terms and high rates.
Sallie Mae CD
Sallie Mae CD rates are really, really competitive and beat out many top online banks. Terms range from 6 months to 5 years and require a $2,500 minimum deposit. Because of this high deposit requirement, you'll need a substantial amount of money to build a Sallie Mae CD ladder.
Like most CDs, Sallie Mae CDs carry no monthly fees. Customers have the option of monthly, quarterly, or annual interest disbursements to a linked bank account. Alternatively, interest can be disbursed when the CD reaches maturity.
Rates as of Aug. 20, 2024
APY = Annual Percentage Yield
Sallie Mae CD
Bottom Line
Sallie Mae may not be well-known for its banking services, but it offers CDs with competitive rates and the typically available terms. But the $2,500 required minimum deposit to open one will make them out of reach for many savers.
Sallie Mae CDs offer favorable rates, but they aren't the only options for earning high-yield interest. Below, you can compare Sallie Mae to some of our other top picks for CDs.
Sallie Mae doesn't offer checking accounts. It does offer the Sallie Mae Money Market account, which comes with check-writing privileges but no ATM card. If you're looking for a checking account, check out our list of the best checking accounts to find one that fits your lifestyle.
Compare checking accounts
We recommend comparing checking accounts to make sure you're getting the best fit for you. Here's a list of our favorite accounts.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
0%
Min. to earn: N/A
Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
up to 1.10%
Min. to earn: $1
High APY when you complete 10 or more qualifying debit card purchases each month
Most of Sallie Mae's customer ratings focus on its private loans, not personal banking services. Customer support is almost nonexistent beyond its phone center, which has limited business hours on weekdays only.
Customers can access bank funds via Sallie Mae's mobile banking app. Unfortunately, it has an average of 1.5 stars between both the Apple App Store and Google Play. You probably shouldn't get too excited about banking on your phone if you're interested in Sallie Mae.
Sallie Mae Bank's relationship benefits
Currently, Sallie Mae Bank doesn't provide relationship benefits on any of its banking products. Instead, it offers attractive terms for anyone interested in opening an account.
As a reminder, banks sometimes offer relationship benefits to customers using multiple products or services. Benefits often include rate increases or fee waivers. This is most common with brick-and-mortar banks, where APYs are otherwise fairly low. Online banks rarely offer relationship benefits. Instead, online banks generally offer the same high interest rates and low fees to all customers.
Alternatives to Sallie Mae Bank
If Sallie Mae doesn't fit the bill for your next bank, check out a couple alternatives you may like better.
Ally
Ally offers comprehensive personal banking online. It has a variety of deposit accounts with high APYs. Even its checking account is interest-bearing, which is a rare perk. None of its accounts come with monthly maintenance fees. If you're open to online banking, and you'd like a jaw-dropping APY, Ally may be a good match for you.
Discover® Bank
Discover® Bank isn't just a credit card issuer. It also offers several banking products that earn high APYs. Additionally, unlike Sallie Mae, Discover® Bank offers checking accounts. Its checking account even earns cash back on debit card purchases. To keep your money more accessible, take a look at Discover® Bank's current product range.
Is Sallie Mae Bank right for you?
Sallie Mae Bank is an excellent choice for you if:
You want to earn high APYs without monthly fees.
You don't need a traditional checking account.
You like the idea of a bank account that helps you set and track savings goals.
Other products by Sallie Mae Bank
Sallie Mae Bank doesn't just have checking and savings accounts. It also offers a suite of cash back credit cards, including the following three.
Sallie Mae credit cards
Sallie Mae Ignite: After six consecutive on-time payments, Sallie Mae will give you a 25% bonus of your card's base rate (1%).
Sallie Mae Accelerate: Card earns 1.5% back on everyday purchases, which becomes 2% if used to pay down federal or private education loans.
Sallie Mae Evolve: Earn 2% back on your two highest spend categories each month, plus 1.5% on other purchases.
Our bank and credit union methodology
Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
No, Sallie Mae is no longer a government entity but rather a publicly traded consumer bank that offers online bank accounts, loans, and credit cards.
Yes, all depositors at Sallie Mae Bank are FDIC insured up to $250,000.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Ally is an advertising partner of The Ascent, a Motley Fool company. Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. SLM is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Synchrony Financial is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Axos Financial, Charles Schwab, Goldman Sachs Group, PNC Financial Services, and Target. The Motley Fool recommends Barclays Plc and Discover Financial Services and recommends the following options: short June 2024 $65 puts on Charles Schwab. The Motley Fool has a disclosure policy.
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