Hailey Johnson
Sallie Mae Bank is an online bank that offers a range of savings products, including certificates of deposit (CDs). The bank is a Member FDIC, meaning that its deposit accounts are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per person, per category, in the event of a bank failure. This insurance protection provides customers with peace of mind and security for their deposits. In addition to FDIC insurance, Sallie Mae Bank also offers competitive CD rates, with terms ranging from 6 to 60 months, providing customers with flexible options for their savings goals.
| Characteristics | Values |
|---|---|
| FDIC-insured | Yes, FDIC Certificate No. 58177 |
| FDIC insurance limit | $250,000 per person, per category |
| CD term options | 6, 11, 12, 13, 14, 15, 30, and 60 months |
| CD rates | 3.40% to 4.35% APY |
| Best CD rates | 12, 13, and 15-month terms at 4.40% APY |
| Minimum deposit requirement | $2,500 |
| No-penalty CDs | Yes, through Raisin |
| Online-only | Yes |
Explore related products
What You'll Learn
Sallie Mae Bank is FDIC-insured
Yes, Sallie Mae Bank is FDIC-insured. FDIC insurance covers the failure of an insured bank, and NCUA deposit insurance covers the failure of an insured credit union. In the case of bank failure, the FDIC steps in to protect depositors. All deposit accounts with Sallie Mae Bank are FDIC-insured up to the maximum amount allowed by law, which is $250,000 per depositor, per ownership category. This means that if you have multiple accounts with Sallie Mae Bank, your total deposits are insured up to $250,000.
Sallie Mae Bank is the online banking division of SLM Corporation. It offers a range of savings products, including certificates of deposit (CDs), money market accounts, high-yield savings accounts, and SmartyPig savings accounts. The bank provides competitive interest rates on its CDs, with terms ranging from 6 to 60 months.
Sallie Mae Bank is a good choice for CDs, especially if you have other products with the bank, such as a student loan or high-yield savings account. It also offers the flexibility of no-penalty CDs, which allow you to withdraw your deposits before the maturity date without incurring a penalty. These no-penalty CDs can be opened through Sallie Mae's partnership with Raisin, an online marketplace that offers high savings account and CD rates.
It is important to note that Raisin itself is not an FDIC-insured bank or NCUA-insured credit union. However, Sallie Mae's partnership with Raisin provides customers with exclusive access to a special selection of competitive savings products. Raisin invests in state-of-the-art cybersecurity measures to protect customer data, privacy, and transactions.
In summary, Sallie Mae Bank is FDIC-insured, ensuring that your deposits are protected up to the legal limit. The bank offers a range of savings options, including CDs with competitive interest rates and flexible terms, making it a viable choice for those looking to grow their savings.
Are Azealia Banks and Tyra Banks Related?
You may want to see also
Explore related products
Deposits are insured up to $250,000 per person
Yes, Sallie Mae Bank is FDIC-insured. This means that all deposit accounts are protected by the federal government, up to $250,000 per depositor, per account ownership category. This includes the bank's CDs (Certificates of Deposit). In the event that Sallie Mae shuts down, you will either be mailed a cheque for your insured amount or your money will be moved to another FDIC-insured institution.
FDIC insurance covers the failure of an insured bank. The FDIC will cover up to $250,000 in deposits per person, per institution. This means that if you have multiple accounts with Sallie Mae, your total deposits across all accounts cannot exceed $250,000 if you want all your money to be insured.
If you have a joint account, the FDIC insurance limit is $250,000 per co-owner, per category. So, if you and your spouse have a joint savings account and a joint CD, each with a balance of $250,000, all your money is insured.
It's important to note that FDIC insurance is per person, per bank. So, if you have accounts at multiple banks, and each account has a balance of $250,000, all your money is insured.
Sallie Mae Bank offers a variety of CD term options, ranging from 6 to 60 months. The bank also offers no-penalty CDs through its partnership with Raisin. However, Raisin is not an FDIC-insured bank, so any CDs purchased through Raisin are not FDIC-insured.
Comerica Bank's Headquarters: Address and Location
You may want to see also
Explore related products
Competitive CD interest rates
When it comes to competitive CD interest rates, there are a few key factors to consider. Firstly, it's important to understand that CD interest rates can vary depending on the bank and market conditions. As such, it's always a good idea to shop around and compare rates before making a decision.
That being said, here are some banks that are known for offering competitive CD interest rates:
- Sallie Mae Bank: Sallie Mae offers competitive CD rates, especially for specific terms like the one-year CD. Their rates tend to be higher than the national average, and they offer a variety of term lengths, including unique options such as 11-month and 30-month terms.
- First Internet Bank of Indiana: As one of the first online banks, they offer a wide range of CD terms with competitive APYs. Their terms range from three months to five years, providing flexibility for short- and long-term savings goals.
- Rising Bank: As the online division of Midwest BankCentre, Rising Bank offers competitive APYs on shorter-term CDs, ranging from six months to one year. They also provide bump-up CDs, allowing customers to raise their rate if interest rates increase during the term.
- Popular Direct: This bank consistently offers competitive rates across its CDs, although it requires a high minimum deposit of $10,000.
- Bread Savings: As an online-only banking division, Bread Savings provides consistently high CD rates with a wide range of competitive APYs. However, they also have a relatively high minimum deposit requirement of $1,500.
It's worth noting that some banks, like Bask Bank and First Internet Bank of Indiana, offer competitive yields but may have higher early withdrawal penalties. Additionally, some institutions provide no-penalty CDs, allowing for more flexibility in managing your savings. Remember to consider your financial goals and preferences when choosing a CD account.
Cord Blood Banking: What's the Difference?
You may want to see also
Online-only bank with no branch locations
Online-only banks are financial institutions that do not have any physical branch locations. Instead, they offer their services solely through digital platforms, such as websites and mobile applications. This model provides customers with the convenience of accessing their banking services remotely, at any time, from anywhere.
While online-only banks do not have the physical presence of traditional banks, they often strive to provide comprehensive digital banking experiences. These banks typically offer a range of services, including various types of accounts such as checking, savings, and certificate of deposit (CD) accounts. Some online-only banks may also provide additional financial products like loans, credit cards, or investment options.
One example of an online-only bank is Synchrony, which offers a high-yield savings account, CDs, and a money market account. Synchrony does not have its own branch locations or ATM network, but it allows customers to use ATMs in the Plus, STAR, or NYCE networks for free and reimburses a portion of fees charged by out-of-network ATMs.
Another example is Popular Direct, which is known for offering highly competitive CD rates for various terms ranging from 3 months to 5 years. However, Popular Direct has high minimum opening deposit requirements for its CDs, which start at $10,000.
Sallie Mae Bank, the online banking division of SLM Corporation, is another prominent online-only bank. It offers a range of savings products, including CDs, money market accounts, savings accounts, and SmartyPig savings accounts. Sallie Mae Bank is FDIC-insured, ensuring that deposits are protected up to $250,000 per person, per category, in the event of bank failure.
While online-only banks offer the convenience of remote access and digital services, some customers may prefer the traditional model of having physical branch locations. This preference may be due to factors such as the ability to build personal relationships with branch staff, easier access to in-person support, or a stronger sense of trust and security associated with brick-and-mortar banks.
Filing Complaints Against Banks: A Step-by-Step Guide
You may want to see also
CD terms ranging from 6 to 60 months
Certificate of Deposit (CD) accounts are a financial product that pays a fixed interest rate for a set period of time, known as the "term". Generally, CDs charge penalties for withdrawing your money before the maturity date, but some banks offer no-penalty CDs.
Sallie Mae Bank offers 11 certificate of deposit (CD) term options, ranging from 6 months to 60 months. The bank’s CD rates tend to be competitive among online banks, with guaranteed CD interest rates for 6–24-month terms. The best CD rates at Sallie Mae Bank are on the 12-month, 13-month, and 15-month terms, which all pay 4.40% APY. The bank also offers an 11-month or 30-month term.
Sallie Mae Bank is FDIC-insured (FDIC Certificate No. 58177), which means that all accounts are protected by the federal government for up to $250,000 per depositor, for each account ownership category, in the event of a bank failure. If Sallie Mae shuts down, it will mail you a check for your insured amount or move your money to another FDIC-insured institution.
Jos. A. Bank: Quality Clothes for the Modern Man
You may want to see also
Frequently asked questions
Yes, Sallie Mae Bank is FDIC-insured (FDIC Certificate No. 58177). All Sallie Mae Bank accounts are protected by the federal government for up to $250,000 per depositor, for each account ownership category, in the event of a bank failure.
Sallie Mae offers 11 certificate of deposit (CD) term options ranging from 6 to 60 months.
Sallie Mae CD rates pay 3.40% to 4.35% APY, depending on the term. The best CD rate at Sallie Mae Bank is on the 12-month, 13-month, and 15-month terms, which pay 4.40% APY.
You can open a standard CD or a no-penalty CD through Raisin, an online marketplace that offers high savings account and CD rates through partner banks. You can also open a no-penalty CD through Sallie Mae's partnership with Raisin.
The minimum deposit required to open a CD with Sallie Mae is $2,500.
