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Sallie Mae CD review
Get 0.6% APY on a 12-month CD with daily compounding interest.
finder.com’s rating: 3.5 / 5.0
★★★★★
Sallie Mae’s CDs offer plenty of long- and short-term options. But you’ll need at least $2,500 to open an account, which is higher than the average minimum deposit for CDs.0.6%
1-year APY
0.8%
3-year APY
0.45%
5-year APY
Details
| Star rate | 3.5 |
|---|---|
| 6-month APY | 0.3% |
| 9-month APY | 0.3% |
| 11-month APY | 0.3% |
| 1-year APY | 0.6% |
| 13-month APY | 0.45% |
| 15-month APY | 0.45% |
| 18-month APY | 0.65% |
| 2-year APY | 0.6% |
| 30-month APY | 0.6% |
| 3-year APY | 0.8% |
| 5-year APY | 0.45% |
| Early withdrawal penalty | 90 days interest for terms of 1 to 12 months 180 days interest for terms of 13 + months |
| Minimum deposit to open | $2,500 |
| Interest compounding | Daily |
Review by
Heather Petty
heather.petty@finder.comHeather Petty is a personal finance writer at Finder specializing in home loans, banking and insurance. After falling victim to a disreputable mortgage broker when buying her first home, she’s on a mission to help readers avoid similar experiences when managing their own finances. A self-proclaimed word nerd, her writing has been featured on MSN, Credit.com and MediaFeed.org, among others. Heather previously worked as a technical writer and editor for the casino systems industry and is an internationally published young adult mystery author. She holds a bachelor’s degree in English with a minor in journalism from the University of Nevada, Reno.
Expert review
The CD terms Sallie Mae offers makes this bank a great choice for both short- and long-term investors. The competitive rates and daily compounding interest can help your savings grow faster, but the higher-than-normal minimum deposit may put those advantages out of reach for some.
How do I open a Sallie Mae CD?
Open a Sallie Mae CD in five steps:
- Go to the provider’s site and follow the steps to apply.
- From the main CDs page, click Open an Account.
- After you verify your email address, walk through the prompts to enter your personal information.
- Select the CD account you want to open.
- Determine how you want to fund your account.
- Review your information and submit your application.
Eligibility
You’ll need to meet the following eligibility requirements to apply for a Sallie Mae CD account:
- At least 18 years old
- US citizen or resident
- $2,500 minimum deposit
Required information
Be sure to have the following information handy before you apply:
- Home address
- Social Security number
- Date of birth
Funding options
You have two options to fund your Sallie Mae CD:
- Bank transfer/ACH
- Wire transfer
Benefits of a Sallie Mae CD
In addition to locked-in interest rates and no monthly maintenance fees, you can expect the following benefits from your Sallie Mae CD account:
- Variety of options. Sallie Mae offers 11 CD term options ranging from six to 60 months. You also have the option of opening a CD for nine or 11 months — which you won’t find offered at most banks.
- Interest compounds daily. Your investment will start earning interest faster with daily compounding interest.
- Allows interest disbursements. You can keep the interest earned in your CD or you can choose to have it sent to you monthly, quarterly, annually or upon the maturity of the CD.
- Competitive interest rates. Sallie Mae doesn’t have the best interest rates on its CDs, you’ll get a better APY than with most traditional banks.
What to watch out for
Before you apply for a Sallie Mae CD, make sure you’re aware of these potential drawbacks:
- High minimum deposit. Sallie Mae requires a $2,500 minimum deposit, which is a higher than average deposit for CDs.
- Limited customer service. With no email or online chat options, your only way to reach customer service is by phone.
- Online banking. Sallie Mae only has one branch located in Salt Lake City. If you don’t live in the area, you’ll do all your banking online.
If you don’t have a lot of savings built up yet, you’ll want to compare the best CD rates along with the lowest minimum deposit requirement.
Compare with other CDs
How do I cash in my Sallie Mae CD?
You’ll receive a reminder 30 days before your CD matures. You’ll have a 10-day grace period from the date of maturity to decide between the following options:
- Do nothing. Your CD will automatically renew for another term with the updated interest rates.
- Make a partial withdrawal. You can withdraw as much or as little as you want with no fee or penalty. As long as your account still has a minimum balance of $2,500 after your withdrawal, it will automatically renew for another term.
- Close the account. Your interest accrues until the day that your funds are withdrawn or the day Sallie Mae receives notice to close the account. As long as you close the account within the grace period, there is no fee or penalty to close your account.
What other savings products does Sallie Mae offer?
Sallie Mae offers three savings accounts:- Online piggy bank. A no-frills account called SmartyPig Savings that allows you to save money for short- or long-term goals. The account comes with an automatic deposit feature, no monthly fees and 0.7% APY on balances up to $10,000.
- Sallie Mae High-Yield Savings account. Offers 0.35% APY compounded daily and paid monthly with no minimum balance and no monthly fees.
- Sallie Mae Money Market. Offers 0.5% APY with no monthly fees and no minimum balance requirement.
Frequently asked questions
CDs ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
We rate CDs and share certificates on a scale ranging from one to five stars based on what matters most to you. We consider two factors equally when rating CDs: minimum deposits and annual percentage yields (APYs) relative to term length. If a bank requires a different minimum opening deposit depending on the chosen term, we rate the CD based on the average minimum deposit across all terms. And although some institutions offer CDs with terms ranging from one week to 20 years, we only consider term lengths the FDIC uses in its monthly updates on national rates.
Read the full methodology of how we rate CDs.