Sallie Mae Bank CD Rates: March 2024 (2024)

FAQs

What is the interest rate for Sallie Mae 2024? ›

Sallie Mae certificates of deposit (CDs) offer competitive interest rates for savers looking to build their savings, with rates up to a 4.95% annual percentage yield (APY). The rates you can tap into vary based on the term length you choose, which range from 4.00% to 4.95% APY.

CD Rates Forecast 2024

The CME FedWatch Tool, which measures market expectations for federal funds rate changes, shows that most experts expect rates to sit between 4.50% and 5.25% by December 2024.

You can find 6% CD rates at a few financial institutions, but chances are those rates are only available on CDs with maturities of 12 months or less. Financial institutions offer high rates to compete for business, but they don't want to pay customers ultra-high rates over many years.

If you signed up for a Sallie Mae loan when you entered college, you may have a high interest rate because you were a college student with no credit history and no full-time income. If you now have a stable job and a good credit score, you may be eligible for a lower interest rate.

The only issue with Sallie Mae's loans is the cost you could incur. Taking advantage of no-interest deferment options could lead your loans to balloon over time. Add to that the higher (but still competitive) interest rates, and you could head toward student loan disasters.

"CD rates will most likely drop and drop substantially in 2024," says Robert Johnson, professor of finance at Heider College of Business at Creighton University. "The biggest reason is the likelihood of Federal Reserve rate cuts later this year."

But until the Fed sees evidence of slowing economic growth, interest rates will stay higher for longer. The 30-year fixed mortgage rate is expected to fall to the mid-6% range through the end of 2024, potentially dipping into high-5% territory by the end of 2025.

Why it's probably time to buy a CD. Rates will remain high for a bit longer, but it's unclear how long. The Fed has indicated that a rate cut may still be coming in 2024, which means it's unlikely that CD rates will continue to climb. Waiting to open a CD could mean missing out on some stellar rates.

How Sallie Mae Bank's CDs Compare. Whether or not Sallie Mae Banks's CDs are competitive depends on the term. Some of its rates on specific terms, such as the one-year CD, are among the best CD rates on the market. And, Sallie Mae Bank's CD rates are significantly higher than the national average.

How secure is Sallie Mae Bank? ›

Are Sallie Mae Bank accounts FDIC insured? Yes, our deposit accounts are FDIC insured up to the maximum amount allowed. To learn more about FDIC insurance limits, visit www.fdic.gov.

Overview. Sallie Mae is best known as a student loan servicer, but it also has other financial services including credit cards and savings accounts. Deposit products are offered through Sallie Mae Bank, Member FDIC, meaning all accounts are FDIC-insured.

While longer-term CDs may tie up your funds for years, a 6-month CD allows you to access your money relatively quickly. If you suddenly need your $5,000 for an emergency or a more lucrative investment opportunity arises, you won't have to wait years to access your funds without incurring hefty penalties.

For the 2024-2025 school year, loans for undergraduates will have a rate of 6.5%, according to Mark Kantrowitz, an expert on student financial aid. Rates for graduate Stafford loans, which have an annual limit, will be 8%. PLUS loans, which are available to graduate students and parents, will have a rate of 9%.

Get a 0.25 percentage point interest rate reduction when you pay by auto debit from your bank account. Lower your interest rate when you choose in-school repayment. No prepayment penalty or origination fees. You can pay off your undergraduate student loan as early as you'd like to reduce your total loan cost.

At Sallie Mae, enrolling in auto debit may qualify you for a 0.25 percentage point interest rate deduction on your eligible loan(s). By lowering your interest rate and making on-time payments each month, you will save money on your total loan cost, which could in result in your paying off your student loans faster.