Sallie Mae High Yield Savings Account Now 1.25% APY

For the third time in a month, a bank has decided it’s time to give savers a little more return for their hard-earned money.

On the heel of recent announcements from Capital One and SmartyPig that increased the interest rate of their respective savings account, Capital One 1.30% APY and SmartyPig 2.15% APY, Sallie Mae, the student loan provider which only recently started to offer Sallie Mae Savings Account, has come out with its own rate increase on May 1, 2010.

Starting this month, the yield of Sallie Mae High-Yield Savings Account is 1.40% APY 1.25% APY, up from 1.20% APY when the product was launched in February. The rate increase puts Sallie Mae savings account, which has been little known so far to many people, in a very competitive position among online savings accounts. To give you an idea on how Sallie Mae compares against other popular online banks, take a look at these high-interest online savings accounts:

As you can see, the new Sallie Mae rate is only lower than what SmartyPig offers (EverBank’s bonus rate is higher, but it’s only good for the first 3 months) on a on-going basis. However, since SmartyPig isn’t a traditional bank (see my SmartyPig review post for details), it has more restrictions than a traditional bank like Sallie Mae does.

If you are interested in getting a Sallie Mae Savings Account (I’m thinking myself), check out my early post for details about the bank, but here’s a quick summary of the account’s features:

  • Daily compounded interest
  • Sallie Mae routing/ABA number 124385119
  • ACH fund transfer to/from external accounts
  • Trial deposit account ownership verification
  • 5-day hold period for deposit $5,000 or less, 10-day hold period for deposit more than $5,000
  • Maximum 6 free withdrawals per statement cycle ($10 per withdrawal over the limit)
  • Customer service toll free number (877) 346-2756

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3 Responses to “Sallie Mae High Yield Savings Account Now 1.25% APY”

  1. Soft |  May 11, 2010 at 10:08 am

    This is really interesting. I think it does indicate that there may be tiers, though I think you would need a lot more datapoints to really prove it statistically.

  2. Best Savings |  Jun 21, 2010 at 12:35 am

    I think it is better chance than having saving account in the banks.
    But it require a lot time to be in the touch.
    Thanks for your advice.
    I must think about it