Review
Updated
Fact Checked
Ashley Maready
If you're looking for an online bank with promising products, Sallie Mae Bank might be a good fit. You've probably heard of Sallie Mae because of its loans. However, its banking division offers deposit accounts featuring high-yield interest with no deposit requirements. This review surveys Sallie Mae's bank accounts and services so you can see how it stacks up to the competition and whether it's right for you.
Sallie Mae
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Sallie Mae Bank is an online bank with a range of interesting products. Its savings accounts have competitive APRs, with no deposit requirements or monthly maintenance fees.
Pros
- Competitive rates on most accounts
- No minimum opening deposits
- No monthly maintenance fees
- Check-writing privileges with MMA
Cons
- No ATM cards
- No physical bank branches
- SmartyPig Account rate decreases on larger balances
Sallie Mae Bank savings accounts
If you're trying to build an emergency fund or save for another goal, both of Sallie Mae's savings products are a great place to start.
Sallie Mae High-Yield Savings Account
Sallie Mae High-Yield Savings Account has a decent APY with no monthly fees or minimum balance requirements. To be sure, this account doesn't have the highest APY we've seen, but it's not bad considering you won't have to maintain a monthly balance to get it.
Customers can manage their funds through online account access or the bank's mobile app.
SmartyPig Account
Think of SmartyPig as an online piggy bank for adults. It works like a traditional savings account, but allows customers to set and track savings goals. In the past, SmartyPig rates were among the best in the industry, but in today's high-rate environment, they're no longer competitive. Plus, there's a $250,000 maximum balance allowed.
This savings account has no monthly fees and no minimum balance requirements. The SmartyPig Account's goal-oriented structure makes it a great vehicle for those with specific goals in mind.
High-yield savings account comparison
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
Show Best Offers Available in
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 4.60%
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
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New customers can earn up to a $300 bonus with qualifying direct deposits!
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Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
5.05% APY for balances of $5,000 or more
Rate info
5.05% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000 for max APY
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N/A
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Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
4.35%
Min. to earn: $0
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New customers can earn a $200 bonus with a minimum $25,000 qualifying deposit. Terms apply.
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Sallie Mae Bank CD accounts
CDs typically offer higher rates than traditional savings accounts. If you're looking for guaranteed returns, a CD is a good way to go. Sallie Mae CDs come with flexible terms and high rates.
Sallie Mae CD
Sallie Mae CD rates are really, really competitive and beat out many top online banks. Terms range from 6 months to 5 years and require a $2,500 minimum deposit. Because of this high deposit requirement, you'll need a substantial amount of money to build a Sallie Mae CD ladder.
Like most CDs, Sallie Mae CDs carry no monthly fees. Customers have the option of monthly, quarterly, or annual interest disbursements to a linked bank account. Alternatively, interest can be disbursed when the CD reaches maturity.
Rates as of April 23, 2024
APY = Annual Percentage Yield
Sallie Mae CD
Bottom Line
Sallie Mae may not be well-known for its banking services, but it offers CDs with competitive rates and the typically available terms. But the $2,500 required minimum deposit to open one will make them out of reach for many savers.
MINIMUM DEPOSIT $2,500
| 6 Mo. APY | 9 Mo. APY | 1 Yr. APY | 1.5 Yr. APY | 2 Yr. APY | 3 Yr. APY | 5 Yr. APY |
|---|---|---|---|---|---|---|
| 5.10% | 5.15% | 5.25% | 4.90% | 4.50% | 4.00% | 4.00% |
Compare CD rates
Sallie Mae CDs offer favorable rates, but they aren't the only options for earning high-yield interest. Below, you can compare Sallie Mae to some of our other top picks for CDs.
Rates as of April 23, 2024
| Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
|---|---|---|---|---|
Member FDIC.
| APY: 5.10% | Term: 10 Months | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.70% | Term: 1 Year | Min. Deposit: $2,500 | |
| APY: 5.05% | Term: 1 Year | Min. Deposit: $1 | |
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| APY: 5.15% | Term: 9 Months | Min. Deposit: $1 | |
Member FDIC.
| APY: 4.75% | Term: 1 Year | Min. Deposit: $500 |
Alternatives to Sallie Mae Bank checking accounts
Sallie Mae doesn't offer checking accounts. It does offer the Sallie Mae Money Market account, which comes with check-writing privileges but no ATM card. If you're looking for a checking account, check out our list of the best checking accounts to find one that fits your lifestyle.
Checking account comparison
We recommend comparing checking account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
Show Best Offers Available in
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0%
Min. to earn: N/A
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Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
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Rating image, 4.25 out of 5 stars.
4.25/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0.40% (up to 3.30%)
Rate info
To earn the full APY, account holders must do all of the following: Receive monthly direct deposits totaling more than $1,500; make 10 transactions a month with your Axos debit card, or sign up for Axos's Personal Finance Manager; maintain an average daily balance of $2,500 per month in an Axos Invest Self Directed Trading Account; and use your Rewards Checking account to make your full monthly Axos Bank consumer mortgage, personal, or auto loan payment.
Min. to earn: Monthly direct deposits totaling at least $1,500
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Use promo code AXOS300 and apply by June 30th, to earn up to a $300 bonus!
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Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0.50%
Rate info
You can earn the maximum savings APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
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Cash bonus up to $300 with direct deposit set up (see details when you click 'Open Account')
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Sallie Mae Bank's customer service and experience
Most of Sallie Mae's customer ratings focus on its private loans, not personal banking services. Customer support is almost nonexistent beyond its phone center, which has limited business hours on weekdays only.
Customers can access bank funds via Sallie Mae's mobile banking app. Unfortunately, it has an average of 1.5 stars between both the Apple App Store and Google Play. You probably shouldn't get too excited about banking on your phone if you're interested in Sallie Mae.
Sallie Mae Bank's relationship benefits
Currently, Sallie Mae Bank doesn't provide relationship benefits on any of its banking products. Instead, it offers attractive terms for anyone interested in opening an account.
As a reminder, banks sometimes offer relationship benefits to customers using multiple products or services. Benefits often include rate increases or fee waivers. This is most common with brick-and-mortar banks, where APYs are otherwise fairly low. Online banks rarely offer relationship benefits. Instead, online banks generally offer the same high interest rates and low fees to all customers.
Alternatives to Sallie Mae Bank
If Sallie Mae doesn't fit the bill for your next bank, check out a couple alternatives you may like better.
Ally
Ally offers comprehensive personal banking online. It has a variety of deposit accounts with high APYs. Even its checking account is interest-bearing, which is a rare perk. None of its accounts come with monthly maintenance fees. If you're open to online banking, and you'd like a jaw-dropping APY, Ally may be a good match for you.
Discover® Bank
Discover® Bank isn't just a credit card issuer. It also offers several banking products that earn high APYs. Additionally, unlike Sallie Mae, Discover® Bank offers checking accounts. Its checking account even earns cash back on debit card purchases. To keep your money more accessible, take a look at Discover® Bank's current product range.
Is Sallie Mae Bank right for you?
Sallie Mae Bank is an excellent choice for you if:
- You want to earn high APYs without monthly fees.
- You don't need a traditional checking account.
- You like the idea of a bank account that helps you set and track savings goals.
Other products by Sallie Mae Bank
Sallie Mae Bank doesn't just have checking and savings accounts. It also offers a suite of cash back credit cards, including the following three.
Sallie Mae credit cards
- Sallie Mae Ignite: After six consecutive on-time payments, Sallie Mae will give you a 25% bonus of your card's base rate (1%).
- Sallie Mae Accelerate: Card earns 1.5% back on everyday purchases, which becomes 2% if used to pay down federal or private education loans.
- Sallie Mae Evolve: Earn 2% back on your two highest spend categories each month, plus 1.5% on other purchases.
FAQs
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No, Sallie Mae is no longer a government entity but rather a publicly traded consumer bank that offers online bank accounts, loans, and credit cards.
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Yes, all depositors at Sallie Mae Bank are FDIC insured up to $250,000.
Our Banking Experts
Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.
Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.
Fact Checked
Ashley Maready
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
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