Sallie Mae Bank Certificate of Deposit (36 Month CD)

Sallie Mae is known for student loans, but Sallie Mae Bank also runs a deposits business with a high-yield savings account, a money market account, SmartyPig and eleven CD terms from 6 to 60 months. There are no monthly maintenance fees. Every CD requires $2,500 to open, and that $2,500 is also a minimum balance you must maintain to keep earning interest. As of October 27, 2026 the 36 month CD pays 4.60% APY, 40 basis points below the 60 month term at 5.00%, so the extra two years of lock-up buys a step up in yield. Below that the curve is tight: the 12, 13, 15, 18, 24 and 30 month terms all pay 4.50%, and the 11 month pays 4.10%. Then there is a cliff at the short end that deserves attention. The 6 month and 9 month CDs both pay 3.20% APY, which is 65 basis points below Sallie Mae's own High-Yield Savings Account at 3.85% APY (variable, as of 10/14/2026). Buying a 6 or 9 month Sallie Mae CD means locking up $2,500 for months in exchange for a lower rate than the bank's savings account pays. That is a hard trade to justify. Interest accrues daily and the compounded interest is credited monthly. The early withdrawal penalty is 90 days of simple interest on the amount withdrawn for maturities of 12 months or less, and 180 days for maturities longer than 12 months, so the 36 month CD carries the 180 day penalty. If the forfeited amount exceeds the interest earned, Sallie Mae takes the difference out of principal, and the penalty may be waived on the death or legal incompetence of an accountholder. At maturity you get a 10 day grace period, after which the CD renews automatically at its current rate and term. This makes sense for savers who can part with $2,500 for three years and want to lock in 4.60%, and the 12 to 30 month terms at 4.50% work as ladder rungs. Skip the 6 and 9 month terms at current pricing. Skip the whole product if $2,500 is a stretch, since every Sallie Mae CD requires $2,500 to open. And note that FDIC coverage is the standard $250,000 per depositor per ownership category, rising to as much as $500,000 on a qualifying joint account.