Banking » Reviews » Sallie Mae CDs Review: High Rates And Variety Of Terms
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Sallie Mae CDs Review: High Rates And Variety Of Terms

Sallie Mae CDs provide attractive rates and a variety of terms. Its short-term CD rates are among the most competitive in the nation
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor, which helps consumers make better financial decisions.  Silvermann’s areas of expertise include investing, banking, and credit cards. Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more. Aside from being a finance expert, his background includes working as a business and financial analyst. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.
Interest Rates Last Update: September 20, 2023
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor, which helps consumers make better financial decisions.  Silvermann’s areas of expertise include investing, banking, and credit cards. Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more. Aside from being a finance expert, his background includes working as a business and financial analyst. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.
Interest Rates Last Update: September 20, 2023

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

Sallie Mae CDs

sallie-mae- review
sallie-mae- review

Sallie Mae CDs

APY Range

4.00% – 5.50%

Minimum Deposit

$2,500

Terms

6 months – 5 years

Our Rating

4.5
4.5/5

Sallie Mae CD Rates

Sallie Mae Bank provides some of the most attractive CD rates available in the market.

With a selection of 11 certificate of deposit (CD) terms spanning from six months to 60 months, Sallie Mae Bank ensures a range of options to suit various investment needs. Whether you want to put your money in short-term CDs or want to invest in long-term CDs, Their CD rates consistently rank among the most competitive CDs among online banks.

CD Term
APY
6 Months
4.95%
9 Months
5.00%
12 Months
5.50%
18 Months
5.55%
24 Months
4.65%
30 Months
4.00%
36 Months
4.00%
60 Months
4.00%

To open a CD, a minimum deposit of $2,500 is required. While Sallie Mae's CD rates are on par with the leading online banks, it's worth noting that certain other banks offer CDs with lower or no minimum balance requirements.

Early Withdrawal Fees And Grace Period

Sallie Mae imposes penalties for early withdrawals from their CDs. The specific penalty depends on the maturity of the CD:

  • CDs with a maturity of 12 months or less: 90 days' simple interest 
  • CDs with a maturity greater than 12 months: 180 days' simple interest 

In cases where the required forfeiture amount exceeds the interest earned or paid on the CD, the difference will be deducted from the principal

CD Term
APY
6 Months
90 days of interest
9 Months
90 days of interest
12 Months
90 days of interest
18 Months
180 days of interest
24 Months
180 days of interest
36 Months
180 days of interest
48 Months
180 days of interest
60 Months
180 days of interest

Here's how the grace period works for Sallie Mae CDs:

  • Automatic Renewal: Your CD will automatically renew when it reaches maturity.
  • Grace Period: You have a ten (10) calendar day grace period starting from the first day of maturity, including the following nine (9) days.
  • Penalty-Free Withdrawal: During the grace period, you can withdraw funds from your CD without incurring any penalties.
  • Preventing Renewal: You can prevent the automatic renewal by either withdrawing the funds from your CD at maturity or within the grace period, or by notifying Sallie Mae within the grace period that you don't want the CD to renew.

Are Sallie Mae CD Rates Competitive?

Sallie Mae CD rates are remarkably competitive, surpassing those offered by other banks and credit unions. With a wide range of terms to choose from, Sallie Mae consistently ranks among the top choices for opening a CD account.

Let's compare Sallie Mae CD rates with some of the highest rates available nationwide to demonstrate its competitiveness. It becomes evident that Sallie Mae offers one of the most appealing rates in the market.

However, Sallie May lacks a higher minimum deposit compared to other banks.

CD APY Range
Minimum Deposit
Marcus
3.70% – 5.10%
$500
Barclays Bank
4.45% – 5.15%
$0
Quontic Bank
4.30% – 5.30%
$500
PenFed Credit Union
2.00% – 4.35%
$1,000
Alliant Credit Union
4.30% – 5.20%
$1,000
Sallie Mae
4.00% – 5.50%
$2,500
Bread Financial
4.25% – 4.75%
$1,500
Capital One
4.10% – 5.25%
$0
Discover Bank
2.00% – 5.00%
$2,500
CIT Bank
0.30% – 5.00%
$1,000
Ally Bank
3.00% – 5.15%
$0
Citi Bank
0.05% – 4.90%
$500
Connexus Credit Union
3.51% – 4.85%
$5,000
Merrick Bank
4.60% – 5.60%
$25,000
BMO Harris
0.05% – 4.50%
$1,000
Synchrony Bank
2.25% – 5.15%
$0
Alliant Credit Union
4.30% – 5.20%
$1,000
Lafayette Federal Credit Union
4.42% – 5.20%
$500
TD Bank
1.00% – 5.50%
$250
Navy Federal
0.40%
$1,000
LendingClub
5.50%
$2,500

About Sallie Mae Bank

Sallie Mae is well-known for its private student loans, but you might not be aware that it's also an online bank offering various savings and personal banking products. One of the main benefits of Sallie Mae is the high savings rates it offers, not only on CDs but also on savings accounts.

Sallie Mae Bank, a division of SLM Corporation, provides competitive rates that are accessible to almost everyone. It's an FDIC insured institution headquartered in Salt Lake City. The BBB gives Sallie Mae an A+ rating, the highest rating available

FAQs

Interest on Sallie Mae CDs is compounded daily and credited to your account on a monthly basis.

The primary drawback is the high minimum deposit requirement, which may be challenging for some customers.

The key advantage is the competitive interest rate offered, along with the flexibility of various terms. This allows customers to employ strategies like CD laddering and save for both short and long-term financial goals.

Compare CD Rates

Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor, which helps consumers make better financial decisions.  Silvermann's areas of expertise include investing, banking, and credit cards. Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more. Aside from being a finance expert, his background includes working as a business and financial analyst. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.