Sallie Mae Banking Review: Earn Up to 5.30% APY on CDs

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Originally a federal student loan provider and servicer, Sallie Mae's® main business is private student loans. But the online-only bank also offers a handful of savings options, including high-yield savings accounts, a money market account, and certificates of deposit (CDs).

If you're looking to make the most of your short- and mid-term savings, Sallie Mae can be a good option. Here's what you need to know.

Sallie Mae Bank Highlights

• Up to 5.30% APY.
• No monthly maintenance fees.
• Savings and money market accounts have no minimum balance requirements.
• CDs require a minimum deposit of $2,500.

Who Is Sallie Mae Best For?

Sallie Mae offers high interest rates on its savings products, particularly on its CDs. However, its savings account yields are a bit below some of the best options available, and the bank doesn't offer a checking account.

You may consider opening a savings, money market, or CD account with Sallie Mae if:

• You want to earn a high yield on your short-term savings.
• You want to track multiple savings goals without opening several savings accounts.
• You don't mind not having ATM access.
• You have a large chunk of money you can part with for a year or longer.

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Sallie Mae SmartyPig® Account

• Interest rate: 4.25% APY
• Minimum opening deposit: None
• Minimum balance requirement: None
• Monthly maintenance fee: None

The Sallie Mae SmartyPig account works similarly to its high-yield savings account but with a few extra features. The account is designed to help you track multiple savings goals without needing to open separate accounts for each one.

You can add a goal and set a deadline to make it easier to track your progress. You can also set up automatic biweekly or monthly deposits from your primary checking account, allowing you to automate your savings goals.

The account offers a tiered APY structure, though as of September 2023, all four tiers have the same rate:

Compared to other top high-yield savings accounts, that's a bit low. However, having the flexibility to manage multiple savings goals in one account may be worth the lower rate.

Recommended High-Yield Savings Accounts

Bank Account	APY	Features	Learn More
UFB Direct Secure Savings Account Open Account	5.25% More Info UFB Direct breaks balances into five tiers, but, currently, there is only one interest rate.	No minimum deposit No monthly fee	Open Account
SoFi Checking and Savings Open Account	0.50% - 4.60% More Info Customers earn 4.60% APY on savings balances when they set up recurring monthly direct deposit of their paycheck or benefits provider via ACH deposit. Alternatively, deposit at least $5,000 each month to earn 4.60% APY on your savings balance. Checking balances earn 0.50% APY	No minimum deposit No monthly fee	Open Account
CIT Bank Platinum Savings Account Open Account	5.05% More Info Earn 5.05% APY on balances over $5,000. Balances of less than $5,000 earn 0.25% APY. Annual Percentage Yield is accurate as of July 27, 2023. Interest rates for the Platinum Savings account are variable and subject to change at any time without notice.	$100 minimum deposit No monthly fee	Open Account
CIT Bank Savings Connect Account Open Account	4.65% More Info Annual Percentage Yield is accurate as of July 27, 2023. Interest rates for the Savings Connect account are variable and subject to change at any time without notice.	$100 minimum deposit No monthly fee	Open Account

Finally, the SmartyPig account offers a $10 reward for each friend you refer who opens a SmartyPig account, sets a savings goal, and contributes at least $25 to it within 30 days of receiving the invitation. You can earn up to $1,000 in total referral rewards.

You can withdraw money via money transfer to a bank account with another financial institution.

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Sallie Mae High-Yield Savings Account

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• Interest rate: 4.50% APY
• Minimum opening deposit: None
• Minimum balance requirement: None
• Monthly maintenance fee: None

Sallie Mae's High-Yield Savings Account offers a high interest rate, regardless of your balance. If you only have one savings goal, this option will be a better fit than the SmartyPig account. There's also no monthly fee or balance requirement.

That said, its APY doesn't compete with the best high-yield savings accounts on the market. Additionally, the only way to access your funds is to transfer them to a bank account with another financial institution.

Recommended High-Yield Savings Accounts

Bank Account	APY	Features	Learn More
UFB Direct Secure Savings Account Open Account	5.25% More Info UFB Direct breaks balances into five tiers, but, currently, there is only one interest rate.	No minimum deposit No monthly fee	Open Account
SoFi Checking and Savings Open Account	0.50% - 4.60% More Info Customers earn 4.60% APY on savings balances when they set up recurring monthly direct deposit of their paycheck or benefits provider via ACH deposit. Alternatively, deposit at least $5,000 each month to earn 4.60% APY on your savings balance. Checking balances earn 0.50% APY	No minimum deposit No monthly fee	Open Account
CIT Bank Platinum Savings Account Open Account	5.05% More Info Earn 5.05% APY on balances over $5,000. Balances of less than $5,000 earn 0.25% APY. Annual Percentage Yield is accurate as of July 27, 2023. Interest rates for the Platinum Savings account are variable and subject to change at any time without notice.	$100 minimum deposit No monthly fee	Open Account
CIT Bank Savings Connect Account Open Account	4.65% More Info Annual Percentage Yield is accurate as of July 27, 2023. Interest rates for the Savings Connect account are variable and subject to change at any time without notice.	$100 minimum deposit No monthly fee	Open Account

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Sallie Mae Money Market Account

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• Interest rate: 4.75% APY
• Minimum opening deposit: None
• Minimum balance requirement: None
• Monthly maintenance fee: None

If you like Sallie Mae's High-Yield Savings Account but want a bit more value, consider the bank's Money Market Account. In addition to a higher interest rate on your deposits, you'll also be able to write checks from the account, giving you a bit more flexibility with funds access.

Unlike some other standard money market accounts, Sallie Mae doesn't charge a monthly maintenance fee or require a minimum balance to earn interest or avoid a fee. The bank also doesn't list a monthly limit of six withdrawals or an excessive withdrawal fee in its terms and conditions.

Other Money Market Accounts to Consider

UFB Direct Secure Money Market Account

Open Account

at UFB

• Our Rating 4/5 How our ratings work Read the review
• APY5.25% More Info

  UFB Direct breaks balances into five tiers, but, currently, there is only one interest rate.

• Minimum
  Deposit RequiredN/A
• Intro Bonus N/A

The UFB Direct Secure Money Market account offers up to 5.25% APY on balances, which is competitive with the very best money market accounts. This account also doesn't feature a minimum opening balance requirement, which makes it a viable option regardless of how often you need to move your money around.

UFB Direct offers one of the highest yields you can find on a money market account. Like Sallie Mae, the online-only bank also allows you to write checks from your balance.

Additionally, UFB Direct's account is tailored more for people with large deposits, charging a monthly fee unless you maintain at least $5,000 in the account.

Quontic Bank Money Market Account

Open Account

at Quontic

• Our Rating 4.5/5 How our ratings work
• APY5.00%
• Minimum
  Deposit Required$100

Quontic Bank's Money Market Account does a lot to keep things accessible to the average customer while maintaining one of the highest interest rates currently available. The $100 minimum opening deposit is on the low end for money market accounts, and you won't have to worry about monthly fees or overdraft charges.

If you want a higher interest rate without a monthly fee, consider Quontic Bank. It does require a minimum opening deposit of $100, but you don't have to maintain that balance to earn its high APY or avoid a monthly service charge. 

Additionally, you'll get more convenient access to your money through a debit card, ATM withdrawals, paper checks, and bank transfers. That said, Quontic has a monthly limit of six withdrawals and a $10 fee for each excess withdrawal after that.

Sallie Mae Certificate of Deposit (CD)

• Interest rate: Up to 5.30% APY
• Minimum opening deposit: $2,500
• Terms: Six months to five years
• Early-withdrawal penalty: Up to 180 days' simple interest

Sallie Mae offers a wide range of terms and rates for its CDs, with some of the best CD rates on the market. However, each one has a $2,500 minimum deposit requirement, and there are no specialized CD options. Here's what you can get:

If you withdraw funds before your account matures with a term of 12 months or less, your penalty will be 90 days' simple interest. If the term is more than 12 months, the penalty is 180 days' simple interest.

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5 Best No-Penalty CD Rates in December 2023: Earn Up to 4.90% APY

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Other CDs to Consider

CIT Bank Term Certificates of Deposit

Open CD

Member FDIC

• Our Rating 3.5/5 How our ratings work Read the review
• Minimum
  Deposit Required$1,000
• 1 Year APY0.30% More Info

  Annual Percentage Yield is accurate as of March 31, 2023. Interest rates for CIT Bank's term CDs are variable and subject to change at any time without notice

• 3 Year APY0.40% More Info

  Annual Percentage Yield is accurate as of March 31, 2023. Interest rates for CIT Bank's term CDs are variable and subject to change at any time without notice

• 6-Month APY5.00% More Info

  Annual Percentage Yield is accurate as of March 31, 2023. Interest rates for CIT Bank's term CDs are variable and subject to change at any time without notice

Many banks that offer CDs require customers to commit to lengthy terms of several years or more in order to earn the highest interest rates available. However, with CIT Bank's term CDs, the opposite is true. To get the best rates at CIT, you'll need to open one of its shorter-term CDs, such as its 6-month CD that pays 5.00% APY. If you want an easy way to save more money without having to wait years, CIT Bank's term CDs are a solid option.

While CIT Bank's 6-month CD offers a slightly stronger APY than Sallie Mae, the latter bank has better rates for most other terms. This is especially true for CDs with terms of two years or more.

However, it's worth noting that CIT also offers a no-penalty CD that can compete with Sallie Mae's rates. If you're worried about potentially needing to withdraw funds early, this is likely the best option for you.

CIT Bank Term Certificates of Deposit

Open CD

Member FDIC

• Our Rating 3.5/5 How our ratings work Read the review
• Minimum
  Deposit Required$1,000
• 1 Year APY0.30% More Info

  Annual Percentage Yield is accurate as of March 31, 2023. Interest rates for CIT Bank's term CDs are variable and subject to change at any time without notice

• 3 Year APY0.40% More Info

  Annual Percentage Yield is accurate as of March 31, 2023. Interest rates for CIT Bank's term CDs are variable and subject to change at any time without notice

• 6-Month APY5.00% More Info

  Annual Percentage Yield is accurate as of March 31, 2023. Interest rates for CIT Bank's term CDs are variable and subject to change at any time without notice

Many banks that offer CDs require customers to commit to lengthy terms of several years or more in order to earn the highest interest rates available. However, with CIT Bank's term CDs, the opposite is true. To get the best rates at CIT, you'll need to open one of its shorter-term CDs, such as its 6-month CD that pays 5.00% APY. If you want an easy way to save more money without having to wait years, CIT Bank's term CDs are a solid option.

Quontic Bank Certificates of Deposit

Learn More

at Quontic

• Our Rating 3/5 How our ratings work
• Minimum
  Deposit Required$500
• 1 Year APY5.30%
• 3 Year APY4.40%

Quontic CDs typically offer a pretty solid APY, especially for one-year terms. However, Quontic’s early withdrawal penalties are notably steep compared to competitors.

Quontic Bank offers slightly higher interest rates than Sallie Mae on most of its CDs, but Quontic only has five different terms compared to Sallie Mae's 11 options. But if you don't have enough cash to meet Sallie Mae's minimum deposit requirement, Quontic may be a good alternative.

Is Sallie Mae Worth It?

Sallie Mae offers some solid savings products, but interest rates on some of its accounts aren't as good as the rates other banks offer. Additionally, Sallie Mae doesn't offer a checking account or ATM access, making it a bit harder to access your funds compared to other financial institutions.

As with any other financial decision, take some time to research all of your options to determine the best fit for you.