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Sallie Mae Bank review (2024): High-yield savings options with no fees
Summary: Sallie Mae was founded in 1972 as the Student Loan Marketing Association, a federal student loan servicer. Over time, Sallie Mae transitioned into a private entity, focusing on private student loans, credit cards, and online banking services. Its deposit products include high-yield savings, CD, and money market accounts.
Sallie Mae Bank products and services
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SmartyPig account: This free, online piggy bank account allows customers to save for short- and long-term goals, track progress, and earn up to 4.10% APY on the balance. There are also no fees associated with this account.
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Money market account: Sallie Mae’s money market account offers 4.10% APY with no minimum balance and no monthly maintenance fees. Interest compounds daily and gets credited to your account monthly. The downside is this account doesn’t come with an ATM card. It does, however, offer checks. This account is ranked among our top 10 best money market accounts available today.
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Certificates of deposit: Sallie Mae offers CDs with terms ranging from six months to 60 months and up to 4.10% APY. The minimum deposit required to open a CD is $2,500.
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High-yield savings account: Sallie Mae’s high-yield savings account has no minimum opening deposit requirement and does not charge any monthly fees. It also offers free transfers. Interest compounds daily and is paid monthly. Right now, account holders can earn 4.10% APY on their balances.
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Student loans: Sallie Mae first made a name for itself in the student loan space and it continues to do so through its private, undergraduate, graduate, and career training loans.
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Scholarships: Sallie Mae also hosts its own scholarship competition and offers scholarships for high school and college students.
Sallie Mae Bank fees
Sallie Mae does not charge fees for its accounts, with the exception of a $20 wire transfer fee for domestic transfers, and an early withdrawal penalty that applies if you take money out of your CD before it reaches its maturity date. The exact amount of this penalty will vary depending on your CD term.
Sallie Mae Bank pros and cons
Here’s a look at some of the major pros and cons you should be aware of before banking with Sallie Mae:
Pros:
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Competitive savings interest rates: Sallie Mae’s savings products all offer interest rates well above national averages, making them an attractive option for savers who want to grow their balance quickly.
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Wide range of CD terms: For those interested in a CD, terms range from as short as six months to as long as five years, giving savers plenty of options, whether they’re saving for short- or long-term goals.
Cons:
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No checking account: Sallie Mae does not currently offer a checking account option, which may be a downside for those who prefer to hold all of their accounts with the same bank.
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Low mobile app rating: Sallie Mae does not offer a universal app for all of its products, and instead offers a separate app for banking and loan customers. Additionally, both of its apps have low customer ratings, which can indicate a poor user experience or limited capabilities.
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No ATM access: Sallie Mae does not belong to an ATM network and does not offer a debit card for its accounts. To access funds, customers must move money to an external account via ACH transfer or check.
Customer service and mobile banking experience
Sallie Mae banking representatives can be contacted by calling (877) 346-2756, Monday through Friday from 9 a.m. to 6 p.m. ET.
For questions related to your SmartyPig account, customer support specialists can be reached at (877) 751-6884, Monday through Friday from 9 a.m. to 6 p.m. ET.
General correspondence can be sent to:
Sallie Mae Bank
175 S West Temple, Ste. 600
Salt Lake City, UT 84101
The Sallie Mae Bank app is available on the App Store and Google Play and has an average rating of 1.5 stars on both storefronts. One major drawback is that this banking app is separate from the Sallie Mae app you would use to manage your student loans. So if you’re an existing loan customer and want to open a bank account, you’ll need two different apps to manage those accounts.
Read more: 10 best mobile banking apps of 2024
Social and environmental impact
In its most recent ESG report, Sallie Mae reaffirmed its efforts to minimize waste by reducing energy consumption through more efficient office lighting, heating, ventilation, and air conditioning systems, as well as encouraging customers to opt into electronic communications. It also introduced new diversity, equity, and inclusion resources, expanded its diversity council, and introduced key initiatives to bolster career development among all its employees.
In 2023, Sallie Mae made $158 million in new investments to support low- and moderate-income housing and affordable housing projects. It also awarded $1.2 million in scholarships to help students from underresourced and underrepresented communities.
Read more: What is sustainable banking?
Frequently asked questions
Is Sallie Mae Bank FDIC-insured?
Yes. Sallie Mae’s deposit accounts are FDIC-insured up to the maximum limit set by the federal government. Learn more about how FDIC insurance works.
What is Sallie Mae’s routing number?
Sallie Mae’s routing number is 124385119.
Is Sallie Mae a federal loan servicer?
No. Sallie Mae began as a government-sponsored enterprise servicing federal student loans, but in 2014, it split into two separate companies: Sallie Mae Bank and Navient. Sallie Mae no longer services federal student loans and is a separate entity from Navient.
