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:
- SmartyPig Savings Account 1.75% APY (2.15% APY on May 19th)
- EverBank Money Market Account 1.51% 3-month bonus rate
- Discover Bank Savings Account 1.30% APY
- American Express Savings Account 1.30% APY
- Ally Bank Online Savings Account 1.09% APY
- FNBO Direct Savings Account 1.10% APY
- ING Direct Orange Savings Account 1.10% APY
- HSBC Advance Online Savings Account (formerly HSBC Direct Online Savings Account) 1.10% APY
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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