Sallie Mae’s History
Sallie Mae Bank was established in 2005 with an emphasis on educational savings accounts. Up until recently, Sallie Mae was in the business of making
loans only. Now they have also branched into some savings products as well. The products they offer are pretty basic and can be easily investigated through their website at www.salliemaebank.com. Sallie Mae Bank has only one branch located in Murray, Utah. As you may have guessed most of their transactions take place with online banking. Sallie Mae Bank is traded under the ticker symbol SLM.
Products offered by Sallie Mae Bank
Online High Yield Savings Account
Sallie Mae Bank has online savings accounts that have attractive features. There are no minimum balance requirements. In these tough economic times, this feature allows an individual to start small especially since their savings accounts also have no monthly fees. This bank savings account is also FDIC –insured. Be aware that paper statements sent to you by Sallie Mae Bank will cost you $5 and are triggered quarterly as well as anytime you make a deposit. Go paperless and you will be able to print what you need and not have to worry about the $5 fee. You also need to be aware that you may be charged for excessive transactions, if you make more than 6 withdrawals in a month. Remember this is a high yield savings account and the fees reflect that.
Certificates of Deposit
Salle Mae Bank is also advertising new online certificate of deposits with guaranteed return and no monthly fee. You have the option of receiving interest payments from the high interest rate cd monthly, quarterly, yearly or at maturity. Sallie Mae bank will notify you 30 days before your cd matures and you have 10 days to choose to renew your CD or to withdraw your funds.
As with most CD accounts, there are early termination penalties. Be aware that this penalty is equal to 3 months of interest on 12 month certificates of deposit or 6 months of interest on longer maturing certificates of deposit. The online application process is smooth and includes only four steps. Sallie Mae Bank also lists the required information before you start which is helpful. Remember there is no minimum deposit as with so many other certificate of deposit accounts and all accounts are FDIC-insured.
What Makes Sallie Mae Unique?
The unique feature of Sallie Mae Banks high yield savings account is the possibility of receiving a 10% Upromise bonus. Upromise is a program where retailers deposit a percentage of your purchase to a Upromise account to be used for your school expenses. With a High Yield Savings Account, you can link to your Upromise account and have your Upromise funds transferred monthly if they amount to $10 or more. In order to be eligible for the 10% Upromise bonus, both the High Yeild savings account and the Upromise account must be in good standing and the savings account must either have an automatic savings plan set up (in the amount of $25 +) or achieve a balance of at least $5,000 with in 90 days of opening the account. Please note that CDs are not eligible for this program.
Summary of Sallie Mae Bank Review
Our review of Sallie Mae Bank showed that it is a great online bank offering some of the best rates and low fees. Individuals who are finding it difficult to get started with a cd or savings account because of the deposit requirements of other institutions may find Sallie Mae Bank to be a good fit for them. The no minimum requirement of Salle Mae Bank when it comes to savings accounts and cds may make getting started possible. If the Upromise bonus is attractive to you, remember the requirements and realize that the Upromise bonus is a percentage (10% annually) on a percentage (varies by retailer) and so it takes awhile to really see the benefits. Many people online expressed disappointed by how slowly their Upromise account was accumulating funds but it is free money for school so it just depends on whether it is worth it to you.
Be sure to check out our video review of Sallie Mae Bank.
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