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Sallie Mae Bank (Member FDIC) is mainly known for its private student loans, but it also offers banking products like CDs.
Sallie Mae is a good choice if you're looking for high interest rates on CDs. You'll need to meet steep minimum opening requirements to open a CD through the website, though.
Sallie Mae CD Rates Today
Sallie Mae CD rates are high overall — in fact, on certain terms, it pays some of the best CD rates out there.
| CD Term | APY (Annual Percentage Yield) |
| 6 months | 4.80% |
| 9 months | 4.85% |
| 11 months | 5.00% |
| 12 months | 5.05% |
| 13 months | 5.10% |
| 15 months | 4.80% |
| 18 months | 4.75% |
| 24 months | 4.50% |
| 30 months | 4.00% |
| 36 months | 4.00% |
| 60 months | 4.00% |
Sallie Mae CD Pros and Cons
| Pros | Cons |
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Sallie Mae's Expansion Into Banking
Sallie Mae has a money market account, savings accounts and CDs. Since our review focuses on CDs, we'll explain more about these specific offerings below.
Types of CDs Offered by Sallie Mae
You can only get standard CDs through the Sallie Mae website. Terms range from 6 months to 60 months.
It's a great option if you want to build a CD ladder, because it has more term options than many banks. For example, you can get 11-month, 15-month, or 30-month terms.
You can also open standard and no-penalty CDs through Raisin. For example, Raisin offers a unique Sallie Mae 14 Month No-Penalty CDit pays 4.75% APY.
Raisin is an online marketplace that offers high savings account and CD rates through partner banks. You can't open a no-penalty CD directly through the Sallie Mae website, but you can through its partnership with Raisin. And like all accounts with Raisin, you only need $1 to open a CD. Keep in mind Raisin's term offerings can change over time.
Online-Only Banking Experience
Sallie Mae is a good choice for CDs if you are comfortable with an online-only experience. You can't visit physical branches, but customer support is available on weekdays during normal business hours on the East Coast.
Steep Minimum Opening Deposit
You need at least $2,500 to open a CD on the Sallie Mae website. Typically, you only need $1,000 to open a CD at banks, so Sallie Mae is less lenient than other banks.
If you don't have at least $2,500 for a CD, check out the best online banks — some top options let you open a CD with $0.
Early Withdrawal Penalties
Sallie Mae CDs have the following early withdrawal penalties:
- 90 days of simple interest on the amount withdrawn for CD terms of 12 months or less
- 180 days of simple interest on the amount withdrawn for CD terms longer than 12 months
Compared to other online banks, Sallie Mae has standard early withdrawal charges for short-term CDs and lenient penalties for long-term CDs.
What Influences Sallie Mae CD Earnings
Below, we'll detail the factors influencing your Sallie Mae CD earnings. This may help you determine if a CD strategy is a good fit for your savings goals.
Market Fluctuations and Fed Actions
Understanding the current economic environment and CD rate forecast for the year can help determine whether to lock in a CD rate or wait.
Generally, savers benefit from higher CD rates when the Fed raises the federal funds rate and get less competitive rates when the Fed cuts rates.
CD Selection
Sallie Mae CDs pay a fixed interest rate, so the term you choose affects your total interest earnings. You can use a CD calculator to find out how much interest you could potentially earn on various terms and opening deposit amounts.
How Sallie Mae CD Rates Compare
Sallie Mae CDs vs. Ally CDs
Sallie Mae pays 4.00% to 5.10% APY on CDs, while Ally Bank CD rates are 3.00% to 4.50% APY on its regular CDs. So if you want a standard CD, Sallie Mae is probably the better choice — the exception being if you don't have at least $2,500 to open an account. Then you'll prefer Ally, because Ally has a $0 minimum deposit on all accounts.
If you're looking for other types of CDs, Ally is likely the better bet. The Ally Raise Your Rate CD has a 2-year and 4-year term, both paying 3.75% APY. If Ally rates go up, you can request a rate increase once during the 2-year term and twice during the 4-year term.
There is also an 11-month Ally No Penalty CD that pays 4.00% APY. Sallie Mae doesn't offer a no-penalty CD, unless you want to open one separately through its partnership with online marketplace Raisin.
Ally Bank Review
Sallie Mae CDs vs. Capital One CDs
Capital One CD rates are 3.90% to 5.00% APY. You'll prefer Capital One over Sallie Mae if you don't have $2,500, because Capital One has a $0 minimum deposit.
Capital One 360 Bank Review
Should You Invest in a Sallie Mae CD?
Sallie Mae CD rates are some of the highest out there. They're great picks if you're comfortable with online banking and have at least $2,500 to open a CD.
Sallie Mae also offers more high-yield CD terms than most banks, so you have plenty of options when opening a CD.
Why You Should Trust Us: How We Reviewed Sallie Mae CDs
To review Sallie Mae CDs, we used Business Insider's certificate of deposit methodology. We look at interest rates, minimum opening deposits, early withdrawal penalties, CD term variety, ethics, customer support, and the mobile app. We assign each category a rating between 0 and 5, then average the scores together to calculate the CDs' overall ratings.
More on Sallie Mae:
- Sallie Mae Student Loans
- Sallie Mae Bank Review
Sallie Mae CD FAQs
Are Sallie Mae CD rates competitive?
Sallie Mae CD rates are competitive and significantly higher than average CD rates.
Does Sallie Mae often change their CD rates?
Sallie Mae can change their CD rates at any time. Sallie CD rates are usually more competitive when the Fed raises rates. When the Fed is cutting rates, the CDs offer lower rates overall.
Do Sallie Mae CDs offer any unique features?
Sallie Mae has unique CD term options. For example, you can get an 11-month or 30-month term. The bank doesn't offer specialty CDs on the bank website, like an add-on or step-up CD. You can get a Sallie Mae no-penalty CD through Raisin, though.
Are Sallie Mae CDs FDIC-insured?
Yes, Sallie Mae is a Member FDIC bank, so any deposits are insured for up to $250,000 per person, per category. If Sallie Mae shuts down, it will mail you a check for your insured amount or move your money to another FDIC-insured institution.
Do I need a student loan to open a Sallie Mae CD?
You do not need a student loan to open a Sallie Mae CD. Anyone over the age of 18 can apply for Sallie Mae CDs online.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She is a banking expert, and has about three years of experience reviewing banking products and analyzing savings and CD trends.Sophia oversees Personal Finance Insider's banking vertical. She edits and writes bank reviews, banking guides, and banking, budgeting, and savings articles for the Personal Finance Insider team.Sophia joined Business Insider in July 2021. Sophia is an alumna of California State University Fullerton, where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@businessinsider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services »Below are links to some of her most popular stories:
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