Sallie Mae Direct, the online banking arm of student loan company Sallie Mae, which maintains one of the highest national interest rates on its no-minimum balance online savings and money market accounts.
Here’s a quick review of the Sallie Mae Direct online savings account.
On the face of it, Sallie Mae online savings account checks out just like all of our other recommended high yield savings accounts:
- No minimum opening deposit or balance
- No monthly fees
- FDIC-insured
- Easy electronic transfers to and from other bank accounts
The Sallie Mae online savings account opening process is straightforward and should only take about 10 minutes. You’ll just need your Social Security number, a driver’s license, passport, or military ID, and a checking account number to make an electronic opening deposit. (Believe it or not, some online savings accounts still don’t take electronic deposits…you have to mail them a check. What’s online about that?)
Finally, there’s one unique perk about the Sallie Mae savings account: Savers who use Upromise can earn a 10% annual bonus on their Upromise earnings for having a SallieMae savings account. Upromise is a shopping rewards program that allows you to earn points for everyday shopping that you can use to repay student loans or save for your children’s college. To qualify, you’ll need to set up an automatic monthly deposit of at least $25 or save at least $5,000.
In a nutshell: As banks struggle to differentiate themselves and win over depositors, there’s really online one feature that matters in an online savings account: a fat interest rate! And this month, Sallie Mae has definitely taken the lead.
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Check out our most recommended high yield savings accounts compared.
About David E. Weliver
Sallie Mae’s rate got dropped to 1.30% APY last week from the 1.40% APY you mention here, but its still one of the best online savings rates available.