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Advertiser Disclosure: Many of the savings offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). These offers do not represent all deposit accounts available.

Sallie Mae Bank

Rate This Bank : 1 Stars 2 Stars 3 Stars 4 Stars 5 Stars 3.56  (18 User Voted)

Sallie Mae Bank, known as the number one provider of private student loans and the main servicer for federal student loans, in 2010 has introduced savings vehicles for all consumers, not just those attending college.

Chartered in 2005, the Internet-only Sallie Mae Bank has headquarters in Murray, Utah. After decades of providing student loan services, Sallie Mae expanded into personal banking services to help families save for college and to encourage their customers to develop a savings habit. Sallie Mae Bank has $7.5 billion in assets as of 2010.

Upromise: unique to Sallie Mae

Sallie Mae owns the Upromise company, a free service that allows consumers to earn money on their credit card and debit card spending. Whenever the consumer uses a linked card to make a purchase from a qualified retailer, whether for everyday expenses such as groceries and drugstore items or big-ticket items like airline tickets, credits are paid into the consumer's Upromise account.

These credits can be rolled over into a 529 college savings plan or converted to a check for tuition or books. Family members can contribute to a student's account by linking their own cards. College students can open Upromise accounts for themselves, too.

Customers can link their Sallie Mae Bank accounts and their Upromise accounts to earn a bonus on their Upromise savings each year. Customers simply need to sign up for a minimum automatic transfer each month into their Sallie Mae savings account or fund the account with a minimum amount within a certain period of time after opening it. The bonus is based on the accumulation of funds in the Upromise account and will be automatically deposited into the Sallie Mae savings account.

Savings account is a specialty

While Sallie Mae remains a prominent provider and servicer of student loans, Sallie Mae Bank focuses its deposit business entirely on savings products and building good savings habits. Customers who want a checking account or a money market account with check-writing privileges will need to go to another financial institution. However, customers can easily transfer funds in and out of a Sallie Mae Bank account.

Sallie Mae Bank offers a high-yield savings account without any monthly fees or minimum balance requirements. Customers can also purchase a certificate of deposit (CD) for a variety of terms. Both CD accounts and savings accounts have interest compounded daily.

Customer reviews

Since Sallie Mae Bank is a relative newcomer to Internet banking, the company has relatively few customer reviews online. However, those who have signed on to keep their savings with Sallie Mae Bank have written that they are pleased with the high interest rates and especially appreciate the bonus available through Upromise. Even customers who had not previously opened a Upromise account often opt to begin one in order to earn the bonus.

Customers also appreciate the link between Sallie Mae Bank and their student loan businesses because they like the idea that they are working with a bank that helps people fund a college education.

Insurance

Each Sallie Mae Bank account is fully FDIC-insured to the maximum of $250,000 per depositor as of July 2010. For joint accounts, each co-owner is insured up to $250,000.

Sallie Mae Bank may be the right choice for those who are saving for college, planning a significant life event or simply wanting to build up an emergency savings fund..

Sallie Mae Bank Rates & Review
23 Responses to "Sallie Mae Bank"
  1. Mariel October 22, 2012 at 7:50 pm

    Are there any fees to electronically transfer money from and to the account to another bank?

  2. Eric Albert July 28, 2012 at 7:22 am

    Can I open a savings account with a Roth IRA?

    1. Maria September 10, 2012 at 10:59 am

      Eric, here's an article from MoneyRates.com that you may find helpful. It pertains to transferring an IRA to a CD, but some of the insights should apply to savings accounts as well. http://www.money-rates.com/ask-the-expert/can-i-transfer-from-an-ira-to-a-cd.htm Thanks, Maria

  3. juan c, garcia February 20, 2012 at 8:56 am

    im interest open an savings account with us,and i will be mailing money orders from Puerto Rico, im not interest electronic transfers. which is the best account with high daily interst ?

  4. Maria August 12, 2011 at 4:33 pm

    Hi Raymond: According to Sallie Mae Bank's website on Aug 12, 2011 the interest on their money market account is compounded daily and posted monthly. Here is the link for additional information for their money market account https://www.salliemae.com/savings-and-cds/money-market/. Thank you!

  5. Raymond August 11, 2011 at 10:03 pm

    How often is the interest rates compounded on a money market account

  6. Winston February 25, 2011 at 3:47 pm

    Hi Karen: According to the bank's website on Feb. 25, 2011, electronic transfers are free. See https://www.salliemae.com/savings-and-cds/savings-accounts/ We make every effort to collect accurate interest rates daily from approximately 300 banks, but because rates constantly change, you may occasionally find a discrepancy. Always check the bank's website for the latest official rates. Thanks for posting on SavingsAccounts.com!

  7. Winston February 25, 2011 at 3:45 pm

    Hi Beth: I recommend getting an attorney to set up the trust for you. Once it's set up, if you are a trustee of the trust, you can open a bank account in the name of the trust. Thanks for posting on SavingsAccounts.com!

  8. Winston February 25, 2011 at 3:30 pm

    Hi Manzer: To place the CD into a family trust, I believe you'll need to make the family trust the legal owner of the CD account. Contact your bank or your attorney for help. Thanks for posting on SavingsAccounts.com!

  9. Manzer A Thompson December 28, 2010 at 5:41 pm

    Can a CD account be put in a family Trust as me as the trustee ? And if so how is it to be entered as the name on the certificate ?.

  10. jene pitsenbarger December 22, 2010 at 7:41 pm

    sallie mae offers a great rate i get this rate on my high yield american express didn't know that you also offer this rate good to know

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Advertiser Disclosure: Many of the savings offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). These offers do not represent all deposit accounts available.