Sallie Mae Bank CD Rates: January 2025

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December 30, 2024
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See what you can earn with a Sallie Mae CD

Fact checked by Amanda Bellucco-Chatham

Sallie Mae offers a certificate of deposit (CDs) with terms ranging from 6 to 60 months, all of which are FDIC-insured and have a minimum balance of $2,500. While Sallie Mae’s CD rates of up to 4.10% are competitive with some of the best CD rates, other bank CDs have lower or no minimum balance requirements.

Compare Sallie Mae Bank CD Rates

Sallie Mae’s CD rates are significantly higher than the national average and for many terms, are competitive with the best CD rates offered by other online banks.

To choose a CD, it’s best to review rates from multiple banks and compare rates based on the term length. For example, you’d want to compare a 12-month CD at one bank to a 12-month CD at another bank. Don’t forget to check the minimum balance requirement and early withdrawal penalties—these features can offer a tiebreaker between two attractive rates.

Sallie Mae Bank CDs: Key Features

Pros and Cons of Sallie Mae Bank

Pros

Competitive rates
Flexible terms

Cons

High minimum deposit
Early withdrawal penalty

Pros Explained

Competitive rates: Sallie Mae CDs offer fairly competitive rates of up to 4.10%.
Flexible terms: You can get term lengths ranging from 6 months to five years.

Cons Explained

High minimum deposit: Sallie Mae CDs have a higher minimum deposit of $2,500, which is higher than many other CDs.
Early withdrawal penalty: Like many CDs, Sallie Mae CDs have early withdrawal penalties.

About Sallie Mae Bank

Sallie Mae, known primarily for student loans, began in 1973 as a government entity servicing federal student loans. Between 1997 and 2004, it cut ties with the federal government and became a publicly traded consumer bank.

Although private student loans remain a part of its product lineup, the bank now offers online-only savings accounts, credit cards, and CDs too.

Note

Sallie Mae is headquartered in Newark, Delaware and operates as an online bank. The easiest way to open a certificate of deposit at Sallie Mae is through its website or mobile app.

Alternatives to Sallie Mae Bank CDs

Other high-interest CDs: Many of Sallie Mae Bank’s CDs offer competitive interest rates. Check the best CD rates currently available before making a deposit.
High-yield savings account: If you want to protect your funds while also earning interest, you can also consider a high-yield savings account.
Checking account: A checking account is another option for storing your cash, especially if you don’t want to be subject to withdrawal limits. Some high-interest checking accounts can provide more returns on your cash than traditional checking accounts.
Money market account: Money market accounts are similar to savings accounts, though they may also come with check-writing abilities and a debit card. You can often earn a good rate on your savings, but you might have to deal with monthly fees or minimum balance requirements.
I bonds: I bonds from the U.S. government are an investment option for protecting your savings from inflation. I bonds may or may not offer a higher rate than the best CDs. When you invest, you have to commit to leaving your money in the I bond for at least a year.

Frequently Asked Questions (FAQs)

Is Sallie Mae a Good Bank for CDs?

Sallie Mae is known for its student loans, but the bank also pays some of the highest CD rates, especially compared to brick-and-mortar banks. Deposits are FDIC-insured for up to $250,000.

What Are the Disadvantages of Sallie Mae?

Sallie Mae has a high minimum deposit of $2,500 for its CDs, which may put it out of reach for some savers. The bank operates online, so you can’t visit a branch and must deposit money electronically. Rates on longer term CDs are less competitive.

What Is the Sallie Mae Controversy?

In 2017, several states formed a class-action lawsuit against Navient—a Sallie Mae spinoff. The lawsuit alleged unfair lending practices related to a portfolio of private student loans transferred from Sallie Mae. The bank hasn’t faced issues with its banking division.

Is a Sallie Mae No Penalty CD Safe?

Sallie Mae’s No Penalty CD, which is available via a third party and not directly from Sallie Mae, does not impose an early withdrawal penalty if you make a withdrawal before the end of the term. While earnings may be affected, your original deposit is safe.