For years after I graduated from college, I made payments to a certain company for my student loans. Lately, I’ve learned that Sallie Mae has several savings products. You can choose to apply for an online savings account or to buy certificates of deposit.
Sallie Mae High Yield Savings Account Review
Sallie Mae’s Online High-Yield Savings account stands out because it currently offers an APY of 1.40%. By contrast, a Bank of America customer in Missouri will be offered a regular savings account with a .10% APY.
There’s no minimum balance to open an account, and there aren’t any monthly fees to drain your funds. And when you register, you can specify either an individual or joint account.
To make deposits, you can link an external account from another bank, then make transfers to your Sallie Mae High-Yield Savings account. You can make transfers or withdrawals via the bank’s website or by calling the bank’s phone number. You can also set up the account for direct deposit or mail checks in as deposits. Interest is compounded daily.
This savings account is insured by the FDIC, so you don’t have to worry about your money disappearing overnight. To open an account online, you’ll need your Social Security Number, a valid form of ID like a driver’s license or military ID, and information about an external checking account that you already have, so you can make deposits to the new savings account.
What about fees? There are a few fees to keep in mind, such as the excessive transactions fee of $10 per withdrawal when you go over the limit of 6 transactions in a statement period. You’ll pay $5 for each deposit that’s returned. And if you want the bank to mail you a copy of your statement, you’ll need to pay $5 per statement. If you’d rather save some money, they advise you to print out your statement via their website instead.
Sallie Mae Certificates of Deposit: Some Details
Sallie Mae also offers certificates of deposit (CDs) with varying terms and rates. A certificate of deposit is a savings vehicle that typically offers higher interest rates if you commit your deposit to a certain length of time. These rates are subject to change.
|12 months||1.55% APY|
|36 months||2.40% APY|
|60 months||3.00% APY|
You can compare these rates with those offered at other banks and institutions: compare online banks here.
These Sallie Mae CDs don’t have monthly fees and like the savings account, they’re insured by the FDIC. When the CDs mature at the end of their terms, they’ll renew automatically. You’ll have 10 days to withdraw the money if you want, though, and the bank will notify you before the CDs mature.
What about early withdrawal penalties? Although there are no monthly fees, you’ll encounter early termination fees if you attempt to withdraw money from the certificates of deposit before they mature. For CDs that mature in 12 months or less, you can expect to lose 3 months’ worth of interest. Otherwise, you’ll lose the equivalent of 6 months’ worth of interest.
Enhance Your College Savings With Upromise!
One great feature that Sallie Mae has over other financial institutions is its acquisition of Upromise, which to me, is one of the best savings programs out there that you can set up for your kids.
If you have students who will head for college sometime in the future, you can open accounts for them in the Upromise college savings program. Upromise allows you to save money when you spend using your credit card (a Upromise card or any other card you register with the program). You can also invite your personal network of family and friends to contribute to your savings efforts through their own spending using their own credit cards; they just need to get set up to contribute to your dependent’s account.
When you make purchases from Upromise’s roster of partners, it’s possible for you to receive discounts and/or earn matching funds for college. I think that anyone with kids should join this program, given that everything about it is free! Through Upromise, you also have the perfect opportunity to open a 529 college savings plan.
After you link your Upromise account to your Sallie Mae High-Yield Savings account, you have the opportunity to earn some great benefits. For instance, through Upromise, you’ll be able to check out coupons and offers from retailers you already know and enjoy. Some of those retail partners include more than 700 stores like Sears.com, Macys.com, and Overstock.com and restaurants such as Denny’s and McDonalds.
Plus, you can purchase more than 20,000 products from local and nationwide grocery stores and drugstores. Chances are that many of these products are already on your shopping list each week or month. With Upromise, you can have those items contribute to your college fund, thanks to the matching funds and/or discounts.
Get An Additional Cash Bonus Into Your Sallie Mae Savings Account
Best of all, Upromise will deposit a 10% annual match into your Sallie Mae High Yield Savings Account if you meet a few stipulations. Within 90 days of opening your savings account, you’ll need to either set up an automatic savings plan of at least $25 per month OR you’ll need to deposit a total of at least $5,000 into the account. You’ll see the 10% match in the February of the year that follows. Other rules might apply, so read the fine print before you sign up.
If you’re looking for a new online savings account or you want to get started with certificates of deposit, then take a look at what Sallie Mae has to offer. What you find just might wipe out the memory of any student loans you’ve had in the past!