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Sallie Mae Bank Review: Competitive Rates and Low Fees

Review Updated
Steven Porrello
Author: Steven Porrello
Steven Porrello
Steven Porrello
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Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.

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Jamie Matthews
Reviewer: Jamie Matthews
Jamie Matthews
Jamie Matthews

Jamie Matthews is alumni of Ohio State University and still calls Columbus, Ohio home. She is a finance editor with more than nine years of experience. When she isn't obsessing over grammar and punctuation, she enjoys baking, reading books, and being a proud dog mom.

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Eric McWhinnie
Fact Checked: Eric McWhinnie
Eric McWhinnie
Eric McWhinnie

Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.
Offer image for

Sallie Mae

Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

Sallie Mae Bank is an online bank with a range of interesting products. Its savings accounts have competitive APYs, with no deposit requirements or monthly maintenance fees.

Pros
  • Competitive rates on most accounts
  • No minimum opening deposits 
  • No monthly maintenance fees
  • Check-writing privileges with MMA
Cons
  • No ATM cards
  • No physical bank branches

  • Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

    These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

    We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

    Learn more about how Motley Fool Money rates bank accounts.

Is Sallie Mae Bank right for you?

This bank may be a good option for you if:

  • You want to earn high APYs from online savings accounts and CDs without monthly fees.
  • You don't mind using an online bank that doesn't offer a traditional checking account.
  • You like the idea of a bank account that helps you set and track savings goals.

Bank fees

Sallie Mae Bank Fee Charge
Monthly service fee $0
Non-bank ATM fee N/A
Overdraft fee N/A
Stop payment request $15
Incoming wire transfer fee $0 for domestic wires; international wires not available
Outgoing wire transfer fee $20 for domestic wires; international wires not available
Data source: Sallie Mae Bank

Savings accounts

If you're trying to build an emergency fund or save for another goal, both of Sallie Mae's savings products are a great place to start.

Sallie Mae High-Yield Savings Account

The Sallie Mae High-Yield Savings Account offers 4.10% APY with no monthly fees or minimum balance requirements. This savings account APY is competitive with some of the best savings accounts, and you won't have to maintain a monthly balance to get it. Customers can manage their Sallie Mae savings account online or through the bank's mobile app.

Ratings Methodology
Rates as of Dec 20, 2024

Sallie Mae High-Yield Savings Account

Member FDIC.
APY
4.10%
Min. To Earn APY
$0
  • No monthly fee
  • No minimum balance
  • Competitive APY
  • No bank branch access

This is a competitive high-yield savings account with no minimum balance requirement. If you're comfortable with 100% online banking, Sallie Mae's savings account could be a good choice.

  • Think of SmartyPig as an online piggy bank for adults. It works like a traditional savings account, but allows customers to set and track savings goals. SmartyPig offers an APY on all balances that is the same as the Sallie Mae High-Yield Savings Account. One downside of SmartyPig is that there's a $250,000 maximum balance allowed -- people with larger amounts of cash might not want to consider SmartyPig.

    This savings account has no monthly fees and no minimum balance requirements. The SmartyPig Account's goal-oriented structure makes it a great way to save for multiple financial goals.

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
3.80%
Rate info Circle with letter I in it. 3.80% annual percentage yield as of December 28, 2024. Terms apply.
Min. to earn: $0
N/A
Open Account for American Express® High Yield Savings

On American Express's Secure Website.

up to 4.00%²
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
3.80%
Rate info Circle with letter I in it. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A

Certificates of deposit

CDs typically offer higher rates than traditional savings accounts. If you're looking for guaranteed returns, a CD is a good way to go. Sallie Mae CDs come with flexible terms and high rates. Sallie Mae CD rates are highly competitive and beat many top online banks.

Terms range from six months to five years and require a $2,500 minimum deposit. Because of this high deposit requirement, you'll need a substantial amount of money to build a Sallie Mae CD ladder. Like most CDs, Sallie Mae CDs charge no monthly fees.

Rates as of Dec. 18, 2024

APY = Annual Percentage Yield

Offer image for Sallie Mae CD
Sallie Mae CD
Bottom Line

Sallie Mae may not be well-known for its banking services, but it offers CDs with competitive rates and the typically available terms. But the $2,500 required minimum deposit to open one will make them out of reach for many savers.

MINIMUM DEPOSIT $2,500
Read Review
6 Mo. APY 9 Mo. APY 1 Yr. APY 1.5 Yr. APY 2 Yr. APY 3 Yr. APY 5 Yr. APY
3.95% 4.00% 4.10% 3.80% 3.75% 3.60% 3.75%

Compare CD rates

Rates as of Dec. 18, 2024
Bank & CD Offer APY Term Min. Deposit Next Steps
APY: 4.00% Term: 1 Year Min. Deposit:  $0
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

Member FDIC.
APY: 4.25% Term: 10 Months Min. Deposit:  $2,500
Open Account for

On Secure Website.

Member FDIC.
APY: 4.25% Term: 6 Months Min. Deposit:  $500
Open Account for

On Secure Website.

Money market account

The Sallie Mae Money Market account offers competitive APY and easier access to your money than most savings accounts. That's because this account gives you check-writing capabilities, as well as a 4.10% APY. If you want the same kind of yield on your cash that you'd get from a Sallie Mae High-Yield Savings Account, but with extra flexibility to use your money to pay bills or make big purchases, this money market account can be a good choice.

Ratings Methodology
Rates as of Dec 20, 2024

Sallie Mae Money Market

Read Review
Member FDIC.
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Read Review
Monthly Fee
$0
Min. Balance
$0
APY
4.10%
Min. To Earn APY
$0
  • Competitive APY
  • No minimum balance
  • Check-writing capabilities
  • FDIC insured
  • No debit card

Sallie Mae Bank's money market account can grow your money at a competitive rate with no minimum deposits or fees. You can access savings through checks and electronically deposit funds into your account.

Customer experience

Sallie Mae is perhaps best known as a student loan provider, and so most of Sallie Mae's customer ratings focus on its loans, not its bank accounts. Customer support is almost nonexistent beyond its phone center, which has limited business hours on weekdays only.

Since Sallie Mae doesn't have bank branches or ATM cards, the easiest way for customers to access their money is via Sallie Mae's mobile banking app. Unfortunately, the mobile app has an average of 1.5 stars between both the App Store and Google Play. You probably shouldn't get too excited about banking on your phone if you're interested in Sallie Mae.

Customer reviews

Like most banks and financial institutions, Sallie Mae gets a mixed bag of customer reviews online. Although Sallie Mae has an A+ rating from the Better Business Bureau and is BBB accredited, its customer reviews show that many people have had a negative experience.

However, most of the BBB complaints about Sallie Mae are related to student loans, so it's possible that the Sallie Mae online banking experience for savings accounts and CDs is better than the typical experience of loan customers. Sallie Mae also gets low ratings on Trustpilot for similar reasons.

  • Better Business Bureau rating: 1.09 out of 5
  • Trustpilot rating: 1.4 out of 5

Sallie Mae Bank has separate customer service lines for different types of bank accounts. For High-Yield Savings, CDs, and Money Market Accounts, call 877-346-2756, Monday to Friday from 9 a.m. to 6 p.m. ET. SmartyPig customer service is available at 877-751-6884, Monday to Friday from 9 a.m. to 6 p.m. ET.

Mobile app

The Sallie Mae Banking mobile app includes some standard features like mobile check deposit and viewing account balances, but compared to other mobile banking apps, it generally gets poor reviews. Recent customer comments include "totally unusable after the last update" and "functionality and interface feels about 30 years old." (Keep in mind that this banking app is a separate app from the Sallie Mae app for managing loans -- that one gets much higher ratings.)

  • App Store rating: 1.4 out of 5
  • Google Play rating: 1.6 out of 5

Physical locations

Sallie Mae Bank is an online-only bank with no physical locations. It also does not provide ATM access, so if you want to withdraw cash from your Sallie Mae account, you'll need to transfer money to an external bank account.

How does Sallie Mae Bank compare?

If Sallie Mae doesn't fit the bill for your next bank, check out a couple alternatives you may like better.

Sallie Mae Bank vs. Ally

Ally offers comprehensive personal banking online. It has a variety of deposit accounts with high APYs. Even its checking account is interest-bearing, which is a rare perk. None of its accounts come with monthly maintenance fees. If you're open to online banking, and you'd like a competitve APY, Ally may be a good match for you.

Sallie Mae Bank vs. Discover® Bank

Discover® Bank isn't just a credit card issuer. It also offers several banking products that earn high APYs. Additionally, unlike Sallie Mae, Discover® Bank offers checking accounts. Its checking account even earns cash back on debit card purchases. To keep your money more accessible, take a look at Discover® Bank's current product range.

FAQs

  • Yes, all depositors at Sallie Mae Bank are FDIC insured up to $250,000.

  • No, Sallie Mae is no longer a government entity but rather a publicly traded consumer bank that offers online bank accounts and loans.

  • Not anymore. Credit cards are no longer offered according to the Sallie Mae website.