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Ben GranBanking Reviewer and Writer
Ben Gran is a freelance contributor for Forbes Advisor on banking. He also writes for The Ascent (a Motley Fool service), where he covers insurance, credit cards, personal finance and investing. Ben has over 10 years of experience as a freelance content writer for regional banks, tech startups, and financial services companies like LendingTree and Prudential. He also works as a ghostwriter for business executives, with bylines in publications such as Fast Company, Entrepreneur and TechCrunch.
Ben Gran
Ben GranBanking Reviewer and Writer
Ben Gran is a freelance contributor for Forbes Advisor on banking. He also writes for The Ascent (a Motley Fool service), where he covers insurance, credit cards, personal finance and investing. Ben has over 10 years of experience as a freelance content writer for regional banks, tech startups, and financial services companies like LendingTree and Prudential. He also works as a ghostwriter for business executives, with bylines in publications such as Fast Company, Entrepreneur and TechCrunch.
Banking Reviewer and Writer
Doug WhitemanEditorial Director, Financial Services
Doug Whiteman is an award-winning journalist with three decades of experience covering personal finance, starting when he was the Washington, D.C.-based consumer news editor and reporter for Associated Press Radio in the 1990s and early 2000s. He's passionate about making financial information clear and useful for consumers — taking personal finance from "Huh?" to "Ah!" He has been quoted by numerous media outlets including The Wall Street Journal, CBS News and USA Today.
Fact Checked
Doug Whiteman
Doug WhitemanEditorial Director, Financial Services
Doug Whiteman is an award-winning journalist with three decades of experience covering personal finance, starting when he was the Washington, D.C.-based consumer news editor and reporter for Associated Press Radio in the 1990s and early 2000s. He's passionate about making financial information clear and useful for consumers — taking personal finance from "Huh?" to "Ah!" He has been quoted by numerous media outlets including The Wall Street Journal, CBS News and USA Today.
Editorial Director, Financial Services
Fact Checked
Updated: Jun 4, 2024, 12:29pm
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Sallie Mae Bank offers 11 certificate of deposit (CD) terms, ranging from six months to 60 months. The bank’s CD rates tend to be competitive among online banks. There’s a $2,500 minimum deposit requirement to open a CD.
Here’s an overview of Sallie Mae Bank’s CD rates. Rates are accurate as of June 4, 2024.
| CD Term | APY | Minimum Deposit |
|---|---|---|
| 6 Months | 4.80% | $2,500 |
| 9 Months | 4.85% | $2,500 |
| 11 Months | 5.00% | $2,500 |
| 12 Months | 5.05% | $2,500 |
| 13 Months | 5.10% | $2,500 |
| 15 Months | 4.80% | $2,500 |
| 18 Months | 4.75% | $2,500 |
| 24 Months | 4.50% | $2,500 |
| 30 Months | 4.00% | $2,500 |
| 36 Months | 4.00% | $2,500 |
| 60 Months | 4.00% | $2,500 |
Overview of Sallie Mae Bank CDs
Sallie Mae Bank’s CDs require a minimum opening deposit of $2,500 and a minimum balance of $2,500. As with most CDs, there’s no monthly maintenance fee. Interest is compounded daily and is credited to your account on the monthly cycle date. Accrued interest can be withdrawn at any time without penalty, but doing so will reduce your earnings. Sallie Mae Bank’s quoted rates assume that interest will be left in your CD until the term is up.
Sallie Mae Bank charges a penalty for early withdrawal if you take money out of your CD before the term is up. For CD terms of 12 months or less, the early withdrawal penalty is 90 days’ simple interest on the withdrawn amount. For terms greater than 12 months, the early withdrawal penalty is 180 days’ simple interest.
Whether you are getting a CD from Sallie Mae Bank or another bank or credit union, make sure to pay attention to the rates and terms and make the right decision for your financial goals.
| Overview of Sallie Mae Bank CDs | ||
|---|---|---|
| Minimum Deposit | $2,500 | |
| Term Lengths | 6, 9, 11, 12, 13, 15, 18, 24, 30, 36, 60 months | |
| Compounding Schedule | Daily | |
| Early Withdrawal Penalty | Terms of 12 months or less: 90 days’ simple interest Terms longer than 12 months: 180 days’ simple interest | |
| Grace Period for Penalty-Free Withdrawals After Maturity | 10 days | |
How Much Can You Earn With Sallie Mae Bank’s CD Rates?
Sallie Mae Bank’s CD rates are higher than what most brick-and-mortar large national banks offer. They’re also competitive with the best CD rates from online banks and credit unions.
Find out how much you can earn with Sallie Mae Bank’s CDs by plugging the numbers into our CD calculator:
How Sallie Mae Bank’s CDs Compare
Whether or not Sallie Mae Banks’s CDs are competitive depends on the term. Some of its rates on specific terms, such as the one-year CD, are among the best CD rates on the market. And, Sallie Mae Bank’s CD rates are significantly higher than the national average. For instance, the average one-year CD earns 1.80% as of May 20, 2024, according to FDIC data, while a one-year CD from Sallie Mae earns 5.05% APY.
Keep in mind that different banks and credit unions offer different APYs on CDs, and the rates can change depending on market conditions. To get the best CD rates available, it’s important to do your research and compare multiple banks and credit unions. Shopping around for CD rates is an excellent way to get the highest possible return on your investment.
About Sallie Mae Bank
Sallie Mae Bank is the online banking division of SLM Corporation. This online bank offers a number of savings products, including CDs, money market accounts, high-yield savings accounts and SmartyPig savings accounts that help you save for specific goals.
Sallie Mae Bank has no physical branches, but you can access your account online or via the bank’s mobile app. Sallie Mae is best known as a maker of undergraduate and graduate student loans.
Find The Best CD Rates Of 2024
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Frequently Asked Questions (FAQs)
Are there different types of CDs?
Yes, there are many different types of CDs, but not all banks offer them. Some CDs will let you increase the APY over the course of the term, add more cash to your deposit amount during the term or offer other specific features. Read the fine print to understand which options are available before you commit to a CD.
What alternatives are there to saving with CDs?
One alternative to saving with a CD is a high-yield savings account, if you can find a competitive APY. CDs sometimes pay higher rates than savings accounts, but the trade-off is that you have to commit your money for a set term. Some of the best online savings accounts may pay APYssimilar to CDs without requiring you to lock up your money for months or years.
Do all CDs charge an early withdrawal penalty?
Generally, traditional CDs charge penalties for withdrawing your money before the CD’s maturity date. But some banks offer no-penalty CDs, which let you withdraw your deposits before the term is up without penalty. This can give you flexibility in how to manage your savings.
Is Sallie Mae Bank FDIC insured?
Yes, Sallie Mae Bank is FDIC-insured (FDIC Certificate No. 58177). All Sallie Mae Bank accounts are protected by the federal government, up to $250,000 per depositor, for each account ownership category, in the event of a bank failure.
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