Sallie Mae is mostly recognized for its pupil loans. However it additionally presents on-line banking options for storing and rising your cash. Sallie Mae presents three varieties of accounts: quick and long-term certificates of deposit, a cash market account and a high-yield financial savings account. 

However not like different well-known on-line banks, Sallie Mae lacks just a few important banking merchandise like a checking account or several types of CDs past conventional and retirement choices. So it will not be the most effective financial institution to mix all of your accounts. 

Whether or not you are on the lookout for aggressive rates of interest or planning for faculty, Sallie Mae does have just a few banking services and products to assist handle your cash and earn returns. However there are execs and cons to think about. This is our tackle Sallie Mae’s banking services and products, plus what else to take into consideration earlier than opening an account. 

What we like 

• Aggressive rates of interest on financial savings merchandise 
• No minimal steadiness requirement for choose financial savings accounts
• A number of CD time period choices 
• No month-to-month upkeep charges 
• On-line school planning instruments 
• No overdraft charges

What we do not like 

• $2,500 minimal deposit for CDs 
• Restricted banking choices 
• 24/7 customer support not obtainable 
• No money deposits or ATM entry 
• No bodily branches 
• $10 extreme switch payment after six per assertion cycle 
• Sallie Mae can shut your account you probably have too many overdrafts

Who’s Sallie Mae suited to? 

Sallie Mae is finest suited to prospects on the lookout for financial savings choices on-line — there are not any bodily branches or ATM entry. This financial institution does not supply a checking account, so look elsewhere should you want an account to deal with your day by day funds. Sallie Mae additionally has restricted customer support hours by telephone, however a stay chat is out there on the web site (stay chat hours aren’t listed on the web site). 

All in all, Sallie Mae is an efficient place to park your financial savings to earn returns. You may have a number of financial savings account choices to select from. And should you’re getting ready for faculty, the financial institution has just a few school planning instruments and pupil mortgage choices. 

Nevertheless, should you’re on the lookout for a full-service financial institution to handle your investments, retirement, checking and financial savings in a single place, it is best to think about choices akin to Ally or Uncover. If you need a full-service financial institution with bodily branches, Capital One can be a great choice.  

Financial savings account assessment 

Sallie Mae’s high-yield financial savings account has a aggressive yield that is on par with different on-line banks. There is no minimal steadiness or month-to-month upkeep payment. And you’ll handle your account by pc, cellular app or textual content. 

Curiosity compounds day by day and is paid to you month-to-month. However to entry your funds, you may have to switch them to your Sallie Mae cash market account (which helps you to write checks) or switch your cash to an exterior checking account. You’ll be able to’t deposit money both, although you possibly can switch cash by test, Automated Clearing Home or different digital transfers. Sallie Mae permits six exterior transfers per billing cycle, and there is a $10 extreme switch cost for each thereafter, though the Federal Reserve’s Regulation D eliminated this requirement and permits banks to supply limitless transfers.  

Charges as of Mar. 1, 2023

What we like

• No month-to-month upkeep payment 
• No minimal steadiness 
• Aggressive APY 
• Digital test deposits
• Cellular and textual content banking 

What we do not like 

• No money deposits
• No checking account to hyperlink to this financial savings account
• $10 extreme transaction payment after six exterior transfers every billing cycle 

CD account assessment 

Sallie Mae solely presents conventional CDs. The financial institution doesn’t supply high-yield, no-penalty, bump-up or different widespread varieties of CDs. Nevertheless, varied phrases can be found starting from six months to 5 years. When your CD matures or the chosen time period ends, you possibly can routinely renew it for an additional time period or you possibly can withdraw your cash with no penalty. 

One other draw back is that whatever the CD time period, there is a minimal $2,500 deposit. And regardless that there are not any month-to-month charges, there is a $5 returned deposit payment in case your deposit does not undergo on account of lack of funds. And should you withdraw out of your CD earlier than it matures, you might be on the hook for curiosity equaling three to 6 months, relying in your time period, which is commonplace for many banks. 

Learn extra: Varieties of Certificates of Deposit 

Charges as of Mar. 1, 2023

What we like

• A spread of CD phrases to select from
• Aggressive APYs 
• CD can routinely renew when it matures

What we do not like 

• Excessive minimal deposit, whatever the CD time period
• Solely conventional CDs obtainable 
• $5 returned deposit payment 
• Early withdrawal penalty may be as much as six months of curiosity 

Cash market account assessment 

Proper now, Sallie Mae’s cash market account has a barely higher price than some CD phrases and its high-yield financial savings account, although it has some drawbacks. Sallie Mae’s cash market account helps you to write checks and switch cash, but it surely does not supply a debit card or ATM entry. This can be a large draw back should you choose utilizing a cash market account rather than a checking account.  

There’s additionally a $5 test ordering payment, which may add up should you write checks continuously. Moreover, deposits into your Sallie Mae account will likely be held for 5 days — that goes for CDs and high-yield financial savings accounts, too. So, ensure you will not want the funds inside this timeframe. Nevertheless, should you plan to make use of this account as a financial savings technique primarily, we do like that curiosity is compounded day by day and paid to your account month-to-month.

Learn extra: Easy methods to Open a Cash Market Account

What we like 

• No minimal steadiness, deposit or month-to-month upkeep payment 
• Skill to jot down checks out of your account
• Aggressive yields in comparison with main, conventional banks 

What we do not like 

• No debit card  
• No ATM entry
• $5 test ordering payment after opening your account 
• You’ll be able to solely entry your cash with checks and transfers 

Banking expertise 

Sallie Mae presents restricted banking merchandise, together with pupil loans, bank cards and several other interest-earning financial savings choices. You’ll be able to earn a higher-than-average return in your financial savings with a standard CD, cash market account or high-yield financial savings account. 

The financial institution additionally comes with just a few monetary planning instruments. You should use SmartyPig — a financial savings function — to create and observe financial savings targets. And Sallie Mae’s school planning instruments may help you perceive the ins and outs of economic assist, scholarships and pupil mortgage choices. The financial institution additionally presents instruments that will help you financially plan for faculty. Moreover, Sallie Mae presents bank cards to supply rewards on pupil mortgage funds. Nevertheless, we don’t suggest paying your pupil loans with a bank card, since bank cards have a lot larger variable APRs than fixed-rate pupil loans.

Nevertheless, Sallie Mae is an online-only financial institution with some restrictions. You will not have debit card or ATM entry, which implies you may have to switch the cash to an exterior account with a debit card for point-of-sale transactions or ATM entry. This may be inconvenient should you want the cash straight away or wish to entry your funds usually.

And should you select a CD, you may want a minimal of $2,500, which may be steep in comparison with different banks, akin to Synchrony, which do not require a minimal deposit to open a CD. And even when your CD matures, you may have to switch funds to a different account or write a test you probably have a cash market account with Sallie Mae. 

Overdraft charges 

Sallie Mae does not have overdraft charges. If you do not have sufficient cash in your account to cowl a transaction, Sallie Mae could deal with overdrafts considered one of two methods. It may possibly decline the transaction. Or if Sallie Mae covers the transaction and permits an overdraft, balances in different Sallie Mae accounts will likely be held till the unfavorable steadiness is paid.

Should you overdraft too typically, Sallie Mae could shut your account. It’s possible you’ll be charged any extra charges that Sallie Mae could have paid in your behalf. 

Learn extra: Financial institution Overdraft Charges: How They Work and Easy methods to Keep away from Them

Customer support 

You’ll be able to contact Sallie Mae about CDs, cash market and high-yield financial savings accounts by calling 877-346-2756 Monday by way of Friday, between 9 a.m. and 6 p.m. ET. You may also use Sallie Mae’s banking app to make a fee, handle your accounts and take a look at your FICO rating. 

Sallie Mae additionally has a stay chat function on its web site. You might also get solutions to your questions from the record of continuously requested questions.

Concerning the financial institution 

Greatest recognized for its pupil loans and school monetary instruments, Sallie Mae is an FDIC-insured financial institution with headquarters in Salt Lake Metropolis, UT. It is an online-only financial institution with a number of choices for financial savings, bank cards and loans and at present boasts aggressive rates of interest on your financial savings. 

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