Sallie Mae Bank review: Pays high rates on savings and money market accounts with no monthly service fees

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Overall bank rating

Pros and cons

Sallie Mae SmartyPig Account

The Sallie Mae SmartyPig Account pays high rates on your savings balance. The interest rate increases as your balance increases, but even the lowest rate is competitive. You can name separate savings goals, such as “Emergency Savings” or “Travel Fund,” and set deadlines for each goal.

Depositing and receiving your cash can be a problem with Sallie Mae, though. You’d have to transfer money to an external bank account, which could take a couple of business days.

Sallie Mae Certificate of Deposit

You’ll need at least Sallie Mae Certificate of Deposit to open a CD with Sallie Mae. If you don’t have that much money, you can find a bank that requires less.

Sallie Mae pays higher rates than you’d earn at a brick-and-mortar bank. The bank pays competitive rates on terms under one year, but as the terms get longer, rates become less competitive.

Sallie Mae Money Market Account

Sallie Mae pays a competitive rate on its money market account, and unlike most banks, it doesn’t require a minimum opening deposit.

The main draw of a money market account over a savings account is that the former makes it easier to access your savings. Sallie Mae does this by sending you paper checks, but it doesn’t send you a debit card as some banks do. You may find this inconvenient if you primarily make payments with a debit card.

How Sallie Mae Bank works

Sallie Mae is an online bank that offers savings accounts, a money market account, and CDs. Sallie Mae doesn’t have a checking account, which can make it difficult to access your savings quickly.

The Sallie Mae mobile app has received 4.6 out of 5 stars in the Apple store and 3.9 out of 5 stars in the Google Play store.

You can speak with a live customer service representative Monday through Friday, from 8 a.m. to 8 p.m. ET. Sallie Mae doesn’t offer customer support on weekends, and there’s no live online chat feature.

Your deposits are FDIC insured for up to $250,000, or $500,000 for a joint account.

Is Sallie Mae trustworthy?

The Better Business Bureau gives Sallie Mae an A+ rating. A strong BBB score indicates a company responds effectively to customer complaints, is transparent about business practices, and is honest in advertising.

Sallie Mae doesn’t have any recent public scandals, so you may decide you’re comfortable keeping your money with this bank.

 Sallie Mae vs. Ally

If you’re planning on opening a checking account in addition to a saving account, Ally will be your strongest option. Ally is the only one out of the two that offers a checking account. 

You may prefer Sallie Mae if you prioritize high CD rates, though. Sallie Mae offers slightly higher interest rates on CDs than Ally. However, you’ll need at least $2,500 to get a Sallie Mae CD.

 Sallie Mae vs. Marcus

If you’d like to open a money market account, Sallie Mae will be your default choice because Marcus doesn’t have one. 

For CDs, it could be a bit of a toss-up. Your decision may depend on minor preferences. For example, Marcus lets you open a CD with $500 while Sallie Mae requires at least $2,500 to open a CD.