Earning more from Less with Sallie Mae CD

Issuing a Certificate of Deposit, or CD as it is commonly known, is a great way to let your money grow. Just like harvesting crops, this service relies on the principle of you can reap only that which you have sown. Simply put, the more money you invest, the greater your rewards will be. But what happens if you want to open a CD account, yet you don’t have the minimum deposit of $1,000 or even $25,000 that some banks ask for?

In this case, Sallie Mae Bank is perfect for you. Being one of the very few banks that absolutely does not require any minimum deposit, you can start putting aside your hard-earned money, whatever amount it may be, and allow it to mature.

The Good Side

Although the highest reported APY today is fixed at 1.15%, with Doral Bank leading the pack, you can still get the most value of your money with Sallie Mae Bank. Being one of the only two CD competitive banks that offer no minimum deposit, it still provides a higher APY than the other. At 1.00% APY, it outshines Ally Banks’s 0.99%, despite its same offer of no minimum deposit. Your money is compounded daily at the same rate, which still allows you to enjoy more benefits than those which are compounded monthly or annually.

The Down Side

After a 12-month period, you get the expected 1.00% APY, and at 36 months, this grows to 1.30% APY. However, by the end of 60 months or 5 years, an APY of 1.50% is all you get. This is a far comparison with most banks’ 2.00% APY for the same time period. If you are looking for a long-term arrangement, you might do well with offers from banks such as Alma Bank or First American Bank, which are currently offering a 2.00% or more APY.

In it for the Short Run

If you are thinking of holding it out for only a year or two, Sallie Mae Bank is your best choice. They do not require a hefty sum, but you’re sure that your money will grow at a rate that’s comparable to others. There are no monthly fees as well. Once you reach maturity, you can withdraw the whole lot with full and guaranteed returns. Or you can always renew your account.

The Sallie Mae CD offer is best for first time investors who want to test the waters before diving in. If you want a short-term, no minimum deposit CD with competitive rates, then this bank’s for you.

Top 5 Private Student Loan Providers

There is no doubt that federal loans will give you the most affordable terms and rates, however these loans are oftentimes not enough to cover all of the expenses in college. To make ends meet, it is usually necessary to take on a private student loan. So where can you get private student loans with competitive rates? Below are the top 5 private student loan providers, with descriptions telling you why they’re the best.

1. Sallie Mae – This provider currently holds the market leading rates with as low as 2.25% APR. Plus, it is also possible to get a 0.25 point interest deduction should you choose to make automatic debit deductions thus bringing the rate even lower. Aside from competitive rates, Sallie Mae also offers incentives and rewards everytime a student eats out, shops online, buys gas and so on. Sallie Mae also offers three different payment schemes such as Interest Repayment, Fixed Payment and Deferred Payment, allowing students to choose the type of loan that suits them best.

2. Citi Bank – CitiAssist loan from Citi bank also offers a low interest rate starting at 3.08% APR. One of the perks offered by CitiAssist is their no origination fee policy, helping students save more from their loans since origination fees usually amount to a good 3% of the loan amount. CitiAssist also offers generous repayment terms such as a 6 month grace period and 15 years to pay. There is also no penalty for prepaying or paying early.

3. US Bank – Student loans for US Bank features interest rates that start at 3.39% APR. And instead of giving a 0.25% reduction with auto payment, they can offer as much as 0.50% interest rate deduction. Other perks from US Bank is the 2% Principal Reduction upon graduation plus a 1% Good Grades perk.

4. PNC Bank – PNC Solution Loans are giving out a low interest rate of 3.30%. It also offers a 0.50% reduction with auto payment. Another good thing about PNC Student loans is that it charges no application or origination fees. Payments can be made for as long as 15 years, making it less heavy on the part of the graduate.

5. Discover Bank – Discover Student Loans offer the lowest rates after Citi Bank. It’s minimum interest rate is currently at 3.25%. They also offer a 0.25 reduction for auto payments and just like US Bank, they are giving away a 2% Principal Reduction upon graduation. And if that isn’t enough, Discover Student loans also doesn’t charge a cent on origination fees.

All these lenders provide a fast and easy online application so you will know if you’re qualified. Some of the lenders will encourage you to bring in a co-signer in case your credit doesn’t qualify. Whatever the case may be, these private lenders should be enough to help you get the financial boost you need during college.

Sallie Mae CD Rates Review

Sallie Mae is an institution that is best known for its educational services such as student loans. It currently serves 23 million customers and it offers various education products such as savings tools, tuition payment plans and educational loans that help college students get the education they need in a financially affordable way.

Despite this main function, Sallie Mae has diversified into more investment opportunities and is now offering money market accounts, savings accounts and certificates of deposit. One of the best things about this is that the institution is offering CD rates at nationally competitive annual percentage yields.

Below are some of the CD rates provided by Sallie Mae:

* 12 month CD – 1.20% APY
* 36 month CD – 1.36% APY
* 60 month CD – 1.66% APY

Term choices are limited for Sallie Mae since they only offer three time choices. But despite this minor setback, the rates they give for each term is considerably good. Let’s take a look at some comparisons for each of Sallie Mae’s rates as compared to the nation’s top lenders.

Right now, the top contender for the 12 month CD is AloStar Bank of Commerce with a 1.21% APY. Although this is higher than Sallie Mae, there is very little difference and Sallie Mae obviously comes to a close second.

For 36 month or 3 year CD’s, the leading bank is Discover Bank with 1.70% APY. This is a far cry from what Sallie Mae is currently offering but the institution is still above the national average which is now at 1.22%. The same also goes for the 60 month CD where the national average is lower at 1.34%, however other banks such as First Internet Bank of Indiana is offering the rate as high as 2.24%.

Despite falling behind on other rates other than the 1 year CD, Sallie Mae is still offering interest rates that are higher than the average. For those who are planning to invest in a 24 month CD, Sallie Mae would be a good choice after AloStar.