Business Insider's personal finance team compares Sallie Mae CD rates to the best CD rates and found its just short of the highest rates out there.
Sallie Mae CD rates are higher than average CD rates, and good overall. That said, you can still find even more competitive rates on specific CDs at other banks as well as other standout features, like lower minimum opening deposit requirements.
Sallie Mae Bank (Member FDIC) is ultimately a good choice for CDs if you have other products with the bank, like a student loan or high-yield savings account. It also may be worth considering if you're building a CD ladder, since it has variety of term lengths with pretty solid rates overall.
Current Sallie Mae CD Rates
Sallie Mae CD rates pay 3.40% to 4.05% APY, depending on the term. The best CD rate as Sallie Mae Bank is on the 11-month and 13-month terms, which both pay 4.05% APY.
| CD Term | APY (Annual Percentage Yield) |
| 6 months | 3.95% |
| 9 months | 4.00% |
| 11 months | 4.05% |
| 12 months | 4.00% |
| 13 months | 4.05% |
| 15 months | 3.95% |
| 18 months | 3.80% |
| 24 months | 3.75% |
| 30 months | 3.70% |
| 36 months | 3.40% |
| 60 months | 3.80% |
Overview of Sallie Mae CDs
Sallie Mae Bank (Member FDIC) is mainly known for its private student loans, but it also offers banking products. Sallie Mae has a money market account, savings accounts and CDs.
The Sallie Mae Money Market Account, Sallie Mae High-Yield Savings Account, and Sallie Mae SmartyPig Account also offer a higher APY than average savings account interest rates.
Since our review focuses on CDs, we'll explain more about these specific offerings below.
Types of CDs Offered by Sallie Mae
You can only get standard CDs through the Sallie Mae website. Terms range from 6 months to 60 months.
It's a great option if you want to build a CD ladder, because it has more term options than many banks. For example, you can get 11-month, 15-month, or 30-month terms.
You can also open standard and no-penalty CDs through Raisin. For example, Raisin offers a unique Sallie Mae Bank 14 Month No Penalty CD pays 3.95% APY.
Raisin is an online marketplace that offers high savings account and CD rates through partner banks. You can't open a no-penalty CD directly through the Sallie Mae website, but you can through its partnership with Raisin. And like all accounts with Raisin, you only need $1 to open a CD. Keep in mind Raisin's term offerings can change over time.
Online-Only Banking Experience at Sallie Mae
Sallie Mae is a good choice for CDs if you are comfortable with an online-only experience. You can't visit physical branches, but customer support is available on weekdays during normal business hours on the East Coast.
Sallie Mae CD Minimum Opening Deposit
You need at least $2,500 to open a CD on the Sallie Mae website. Typically, you only need $1,000 to open a CD at banks, so Sallie Mae is less lenient than other banks.
If you don't have at least $2,500 for a CD, check out the best online banks — some top options let you open a CD with $0.
Sallie Mae CD Early Withdrawal Penalties
Sallie Mae CDs have the following early withdrawal penalties:
- 90 days of simple interest on the amount withdrawn for CD terms of 12 months or less
- 180 days of simple interest on the amount withdrawn for CD terms longer than 12 months
Compared to other online banks, Sallie Mae has standard early withdrawal charges for short-term CDs and lenient penalties for long-term CDs.
Sallie Mae CD Pros and Cons
Sallie Mae CD Pros
- High CD rates
- Interest compounds daily
- Variety of CD terms
- Low-to-standard early withdrawal penalties
Sallie Mae CD Cons
- $2,500 minimum deposit
- No terms under 6 months or over 5 years
Sallie Mae CD Alternatives
Sallie Mae CDs vs. Ally CDs
Sallie Mae pays 3.40% to 4.05% APY on CDs, while Ally Bank CD rates are 2.90% to 4.05% APY on its regular CDs. The offers are similar, the exception being if you don't have at least $2,500 to open an account from Sallie Mae. Then you'll prefer Ally, because Ally has a $0 minimum deposit on all accounts.
If you're looking for other types of CDs, Ally is likely the better bet. The Ally Raise Your Rate CD has a 2-year and 4-year term, both paying 3.40% APY. If Ally rates go up, you can request a rate increase once during the 2-year term and twice during the 4-year term.
There is also an 11-month Ally No Penalty CD that pays 3.75% APY. Sallie Mae doesn't offer a no-penalty CD, unless you want to open one separately through its partnership with online marketplace Raisin.
Sallie Mae CDs vs. Capital One CDs
Capital One CD rates are 3.50% to 4.00% APY. You'll prefer Capital One over Sallie Mae if you don't have $2,500, because Capital One has a $0 minimum deposit.
What Influences Sallie Mae CD Earnings
Below, we'll detail the factors influencing your Sallie Mae CD earnings. This may help you determine if a CD strategy is a good fit for your savings goals.
Market Fluctuations and Fed Actions
Understanding the current economic environment and CD rate forecast for the year can help determine whether to lock in a CD rate or wait.
Generally, savers benefit from higher CD rates when the Fed raises the federal funds rate and get less competitive rates when the Fed cuts rates.
CD Selection
Sallie Mae CDs pay a fixed interest rate, so the term you choose affects your total interest earnings. You can use a CD calculator to find out how much interest you could potentially earn on various terms and opening deposit amounts.
Should You Invest in a Sallie Mae CD?
Sallie Mae CD rates are solid but other CD rates are a bit higher right now. They're still great picks if you're comfortable with online banking and interested in other Sallie Mae products.
Sallie Mae also offers more high-yield CD terms than most banks, so you have plenty of options if your goal is to create a CD ladder. Keep in mind you need to have at least $2,500 to open a CD, though.
Why You Should Trust Us: How We Reviewed Sallie Mae CDs
To review Sallie Mae CDs, we used Business Insider's certificate of deposit methodology. We look at interest rates, minimum opening deposits, early withdrawal penalties, CD term variety, ethics, security, miscellaneous features, customer support, and the mobile app.
We assign each category a rating between 0 and 5, and star ratings can be anywhere from one to five stars. We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
Sallie Mae CD FAQs
Sallie Mae CD rates pay 3.40% to 4.05% APY, which are good rates and higher than average CD rates.
Sallie Mae charges an early withdrawal penalty of 90 days of simple interest on the amount withdrawn for CD terms of 12 months or less and 180 days of simple interest on the amount withdrawn for CD terms longer than 12 months.
Sallie Mae has unique CD term options. For example, you can get an 11-month or 30-month term. The bank doesn't offer specialty CDs on the bank website, like an add-on or step-up CD. You can get a Sallie Mae no-penalty CD through Raisin, though.
Yes, Sallie Mae is a Member FDIC bank, so any deposits are insured for up to $250,000 per person, per category. If Sallie Mae shuts down, it will mail you a check for your insured amount or move your money to another FDIC-insured institution.
You do not need a student loan to open a Sallie Mae CD. Anyone over the age of 18 can apply for Sallie Mae CDs online.
