Sallie Mae High Yield Savings Account Review 2025: Pros, Cons & Fees
Sallie Mae Bank, member FDIC, is one of the most recognizable names for private student loans, but it also offers a range of banking products, including a high-yield savings account with an annual percentage yield (APY) well above the national average.
If you’re researching the best financial institutions for savings accounts, learn what Sallie Mae Bank offers to decide if it’s the right choice for you.
Sallie Mae High-Yield Savings Account Essentials
The Sallie Mae High-Yield Savings Account offers these features:
- Earn a strong APY that’s 20x the national average
- No minimum balance requirement
- No monthly maintenance fees
- Transfer money free, up to a maximum of six withdrawals per month
- Member FDIC coverage
- Easy online account management
Pros
- Highly competitive APY makes this a true high-yield savings account
- Through the SmartyPig feature, customers can earmark savings funds for specific goals
- There are several Sallie Mae Bank CD amounts and term lengths
- No maintenance or monthly fee
Cons
- A checking account with check-writing privileges is not available
- The mobile app is not as robust as ones from other online banks
- No access to an ATM card
Which Banks Have the Best Savings Account Rates?
Finding the bank with the best savings account to meet your needs is as simple as searching our list below. Try it now and find your high-interest savings account.
Sallie Mae High-Yield Savings Account Rates
With some online banks, savings deposit account rates are tiered. Typically, that means you need to save more money to earn the highest interest rates on bank accounts. That may not be ideal if you’re just getting started with saving.
With its high-yield savings account, Sallie Mae Bank offers the same annual percentage yield on all balances. You earn the same rate whether you’re saving $500 or $50,000.
The rate compares favorably to other banks at 20x higher than the national average. Comparatively, you might be earning a rate closer to 0.45% at brick-and-mortar banks.
When comparing Sallie Mae Bank deposit products with those of other online banks, the interest rates (APY) are what you’d expect. Online banks often have an advantage over other financial institutions when it comes to offering competitive interest rates because they tend to have lower overhead costs. This savings is passed on to customers in the form of higher rates and lower fees.
Sallie Mae High-Yield Savings Account Monthly Fees
Since fees can eat into your interest earnings, banking fees are always worth noting. There are no monthly maintenance fees with Sallie Mae’s High-Yield Savings Account.
No minimum balance or minimum balance fee is required to open an account. However, your account can be closed if there’s no new activity within 12 months. A simple way to avoid that is to schedule automatic transfers into savings each month from your linked checking account at another bank.
Other Savings Account Fees
While there is no monthly maintenance or minimum balance fee associated with the Sallie Mae High-Yield Savings Account, there are a few other transaction fees to know. Those include:
- Returned check fee: $5
- Outgoing domestic wire transfer fee: $20
- Expedited delivery fee: $15
You are allowed up to six monthly eligible withdrawals from your savings account. Exceeding that amount can trigger an excess withdrawal fee of $10 for each debit transaction over the allowed limit.
Sallie Mae can charge you up to seven of these fees per month. If you have more than seven excess withdrawals in a month, any additional transaction fees are carried over to the next month. Sallie Mae can close your savings account if you repeatedly make excess withdrawals.
Sallie Mae Bank High-Yield Savings Account Features & Benefits
This high-yield savings account offers few special features or extras. The most attractive features are the generous APY and the ability to manage your account online.
With online banking, you can:
- Check your savings account balance
- Deposit checks via mobile deposit
- Transfer funds
- Set up text alerts and notifications
Online account management is easy. You can monitor your savings balance and progress from your laptop or mobile device wherever you go.
Are There Other Ways to Save with Sallie Mae Bank?
In addition to a high-yield savings account, there are a few other ways to manage your money with Sallie Mae Bank. The options include:
- Certificates of deposit
- Smarty Pig online piggy bank
- Sallie Mae money market account
- Credit cards
- Personal loans
- Student loans
- Money market accounts
Unfortunately, there is no checking option. In terms of the savings alternatives, here’s how they add up.
Certificates of Deposit
Sallie Mae offers CD accounts with terms from six to 60 months. The longer the CD term you choose, the more competitive the interest rate you earn. You’ll need to consider whether a higher interest rate is worth not being able to withdraw money without an early withdrawal penalty until the CD matures.
CD accounts require a $2,500 minimum deposit to open and a $2,500 minimum balance to maintain your account. There are no monthly fees for certificates of deposit, but there is a $5 returned check fee. CD rates are guaranteed, and you can roll your CD over into a new one automatically once it reaches maturity.
Sallie Mae Money Market
The Sallie Mae money market account offers a slightly higher APY than the high-yield savings account. There is no minimum balance and no monthly maintenance fee.
This account gives you the option of being able to write checks on your money market balance. Like the high-yield savings account, you’re limited to six withdrawals per month under federal Regulation D. Otherwise, you may be subject to the $10-per-debit excess-withdrawal fee.
SmartyPig
SmartyPig is a fourth way to save with Sallie Mae. It’s an FDIC-insured online piggy bank that you can use to save for short- and long-term goals.
It’s free to join, save, and withdraw money with SmartyPig. Savers earn a competitive interest rate and APY and earn $10 for new customers they refer to SmartyPig. Terms and conditions apply.
How to Open a Sallie Mae High-Yield Savings Account
Account opening with Sallie Mae Bank is similar to other online banks. Start by confirming your email address, then provide your personal information, including:
- Your name
- Social security number
- Date of birth
- Address
- Phone number
- Employment information
- Income
You also need to choose a secret question and answer to verify your identity. Then, you can move on to the next step, which is linking an external account and making your initial direct deposit amount.
Opening an account only requires entering and verifying your information. A minimum deposit is not required to open a savings account; it’s only for CD accounts.
Customer service hours are available by phone Monday through Friday, 8 a.m. to 8 p.m. ET for CDs, money market accounts, high-yield savings accounts, and SmartyPig accounts. You can also use an online form to request help with SmartyPig accounts.
Bottom Line: Is a Sallie Mae Bank Savings Account Right for You?
The Sallie Mae high-yield savings account may seem like an obvious choice if you have student loans, credit cards, or a personal loan through the SLM Corporation. The competitive interest rate you can earn on savings is comparable to what other online banks offer, and it’s far beyond the typical range of what you’ll find at a traditional bank.
The fact that you can also save using certificates of deposit or the Sallie Mae money market account adds to the bank’s appeal. A SmartyPig account could also be a good introduction to saving for kids if you’re a parent.
One potential stumbling block if you’re looking for an all-in-one banking solution is the lack of a checking account product. If you’re able to overlook that and you’re comfortable having savings in one place and checking in another, then Sallie Mae Bank could be an excellent choice for growing your money.
FAQs
No national banks in the US currently offer 7% interest on savings accounts, but some banks do offer high rates.
Sallie Mae generally offers competitive yields on its savings accounts, but it’s good to shop around.
The main downside of a high-yield savings account is that interest rates can fluctuate, meaning your earnings aren’t guaranteed. Many accounts also have withdrawal limits, fees, or balance requirements. Inflation can outpace interest rates, reducing purchasing power over time. Additionally, online banks offer some high-yield accounts, which may lack physical branches for in-person service.
