In our Sallie Mae Bank review, you’ll find an in-depth analysis of this online bank, one of the new additions to the online savings account community.
When you or I think of Sallie Mae, the first thing that comes to mind probably isn’t their online savings account. To be perfectly honest, I’m not sure that the 1,000th thing to come to mind would be a savings account. Yet, Sallie Mae has recently launched just that, and with a current savings rate APY of 0.90% (as of May 3, 2015), its worth a look.
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Now you might be saying “A 0.90% savings account rate is worth a look?” Believe me, if this were any other year, I would agree with you, but like it or not, savings account rates are extremely low, and Sallie Mae is in the top 2% of all banks nationally. Another thing that Sallie Mae has going for itself is brand power. When you think of other online banks, like Ally, Synchrony, or Capital One 360, you’ve really never heard of them before learning about their online accounts. Banks like Discover, American Express and Sallie Mae have a little pop behind their product, and they don’t mind showing it off. Let’s take a look at the product line Sallie Mae has to offer.
With any new bank, the product line is going to be a bit limited during the initial launch, then as the bank becomes more comfortable, you can expect bigger and brighter things. Sallie Mae has decided on showcasing the basics … an online savings account, a money market account, and a group of CD’s.
ONLINE SAVINGS ACCOUNT
Sallie Mae offers a very basic, simple and easy to sign-up online savings account that currently sports a 0.90% APY (as of May 3, 2015). Funding and withdrawals are made with the touch of a button and one of the cool features that Sallie Mae offers is a 10% Upromise match. Anyone familiar with Upromise knows that it’s a way to save for your child’s education. If you currently have a Upromise account, you can set up a Sallie Mae savings account and have an additional 10% of your annual Upromise earnings deposited directly into your account.
Upromise is a program that pays you back a certain percentage of every purchase you make on name brand merchandise. As long as the merchant is part of the Upromise program, you will slowly and steadily increase your balance, that over the course of 10 to 15 years, becomes pretty substantial. Now, with your Sallie Mae online savings account, you can earn an additional 10% each and every year, making it a must have if you work hard at building your child’s education through Upromise. In order to take advantage of the Upromise bonus, you must either initially fund your Sallie Mae account with $5,000 or set up an automatic monthly deposit of at least $25 within 90 days of opening your Sallie Mae online savings account.
CERTIFICATES OF DEPOSIT
Making the decision to put your money away for years, without having access to it is not an easy decision, certainly made tougher with the low interest rates available today. Sallie Mae has done an excellent job in making their rates competitive, as well as easy to comprehend.
Currently, only three available CD terms are offered and they are illustrated on the table below.
|CD Length||Rate (APY)|
When you compare the rates available with Sallie Mae to other online banks, you’ll find them well above average. If that’s not reason enough to consider them, take into account the Upromise bonus that’s available with their online savings account and Sallie Mae becomes an extremely attractive option for your online savings needs.