Sallie Mae Bank Review: High-Interest Savings and Money Market Accounts
Written by
Virginia Anderson
Edited by
Melanie Grafil
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GOBankingRates Score
Sallie Mae Bank
-
Savings Account
4.8
-
Money Market Account
5.0
-
CD Account
4.7
-
Banking Experience
3.5
Pros
- No monthly fees
- Competitive rates on savings, money market accounts and CDs
Cons
- No checking account availability
- No branch availability
- Limited customer service hours
Sallie Mae Bank Overview
Sallie Mae Bank, the online banking arm of SLM Corp., was established in 2005 and is headquartered in Salt Lake City. Even though Sallie Mae Bank offers limited products and services and does not offer checking accounts, it’s the perfect pick for helping you meet your savings goals.
GOBankingRates voted Sallie Mae Bank as having one of the Best Money Market Accounts of 2024.
Key Features
Savings Accounts
Sallie Mae offers two savings accounts: SmartyPig and its High-Yield Savings Account. Here are the details for each.
SmartyPig Account
You can think of Sallie Mae’s SmartyPig Account as a virtual piggy bank that allows you to set up specific savings goals and track them. Sallie Mae’s SmartyPig offers:
- A competitive interest rate of APY.
- The ability to earn a $10 reward for each friend you refer who opens a SmartyPig Account and makes a deposit of at least $25 within 30 days. There is a maximum of 100 friends and $1,000 in total rewards.
- No fees or minimums, and you can set up automatic biweekly or monthly savings deposits to increase your balance. Additionally, you can add funds to your account at your convenience.
High-Yield Savings Account
With Sallie Mae’s High-Yield Savings Account, you can earn interest faster than you would with most traditional savings accounts. While this account does not offer the same referral program as the SmartyPig account, it does offer free transfers and other benefits:
- The APY is compounded daily and paid monthly
- No minimum balance requirements
- No monthly maintenance fees
Money Market Account
Sallie Mae’s Money Market Account stands out among money market offerings from traditional institutions and other online banks. GOBankingRates named it as one of the Best Money Market Accounts for 2024 for several reasons:
- A competitive rate of APY
- No monthly maintenance fees
- No minimum balance requirements
- Free transfers
- You can write checks with your money market account
Thanks!
CD Accounts
GOBankingRates often ranks Sallie Mae Bank as having one of the Best CD Accounts due to its lack of monthly fees and competitive CD APY rates. CD terms are available from six to 60 months, with rates ranging from a competitive to APY, depending on the term. Although the rates are competitive, it’s important to note that a $2,500 minimum opening deposit is required on all CDs.
Banking Experience
When searching for a bank, you may focus on the banking products and rates available. However, these other factors are worth considering, too:
- No Minimum Daily Balance Requirements: Sallie Mae Bank does not require you to meet minimum daily balance requirements. This can be helpful if you are working to build up your balance over time.
- No Monthly Fees: Other banks charge monthly fees and often allow you the option of having them waived, but you have to meet one or more requirements, such as maintaining a minimum daily balance or setting up regular direct deposits. There are no monthly maintenance fees on Sallie Mae’s savings or money market accounts.
- Mobile Banking: The Sallie Mae Banking App is available through the Apple App Store and Google Play Store. However, features are limited to mobile check deposits and viewing account balances. The banking app has a 1.3 rating through the Apple Store and 1.7 on Google Play.
Comparable Sallie Mae Bank Options
One way to get the big picture about a bank is to see how it measures up to its competitors. Here’s a snapshot of Sallie Mae versus competing financial institutions.
Wells Fargo Bank
Sallie Mae is an online-only bank, which means you won’t be able to receive face-to-face service. However, Wells Fargo shines in that area with its thousands of branches and ability to schedule an appointment with a representative online.
Unlike Sallie Mae, Wells Fargo charges monthly service fees on its savings accounts if you don’t meet minimum daily balance requirements. Interest rates on savings accounts with Wells Fargo are also lower than Sallie Mae’s.
Chase Bank
Chase is considered a full-service bank with all the banking products and services consumers typically seek, while Sallie Mae is much more limited and offers only student loans, savings accounts, money market accounts and CDs.
However, Sallie Mae’s savings account options are fee-free and do not require account holders to maintain minimum balances; Chase charges monthly fees if you don’t meet requirements, such as a minimum daily balance.
PNC Bank
PNC Bank offers relationship rates when you link your savings account to one of its eligible checking accounts. Sallie Mae doesn’t offer checking accounts or a relationship rate option. However, Sallie Mae’s rates are much higher overall, even without relationship rates.
Final Take
Sallie Mae’s selection of savings products and competitive rates without the hassle of monthly fees or minimum balance requirements make it a viable option, even without checking accounts. It is suitable for people looking for a secondary bank that offers competitive savings rates with a unique twist on the standard savings account. Sallie Mae is worth considering if you don’t mind doing your banking online.
FAQ
Here are a few of the most commonly asked questions about Sallie Mae Bank.- Does Sallie Mae have a bank?
- Sallie Mae is well known for its student loan options, but it also provides banking services. Through Sallie Mae Bank, you can open a savings account, money market account or CD.
- Is Sallie Mae Bank covered by the FDIC?
- All savings accounts, money market accounts and CDs opened with Sallie Mae Bank are insured by the FDIC. The standard FDIC coverage limit is $250,000.
- Is Sallie Mae Bank a government agency?
- No. Sallie Mae Bank is a subsidiary of SLM Corporation. It is not affiliated with or sponsored by any U.S. government agency.
- Is Sallie Mae a good bank?
- Sallie Mae is a good banking option for consumers seeking to earn interest on their money with a savings account, money market account or CD. However, it does not offer checking accounts or other products, such as investment services, you may find with other banks. When seeking a banking option, it's a good idea to compare features to find one that suits your needs.
- What are the disadvantages of Sallie Mae?
- The primary disadvantage of Sallie Mae Bank is its lack of checking account options. Also, since it's an online-only bank, there are no physical branches you can visit for in-person assistance.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Dec. 18, 2023.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
The information related to Chase products was collected by GOBankingRates and has not been reviewed or provided by the issuer of these products. Product details may vary. Please see the issuer’s website for current information. GOBankingRates does not receive commission for these products.
To determine rankings for the Best Money Market Accounts, GOBankingRates looked at the following factors from all banks (excluding neobanks): (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) APY on the money market account; (5) the minimum balance needed to earn the APY; (6) monthly money market fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); and (7) the average mobile app rating between the Google Play (Android) and Apple app stores. All factors were then scored and combined, with the lowest score being the best. Factors (1) and (2) were weighted 0.5 times, and factor (4) was weighted 4 times.
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