Sallie Mae New Rate of 1.40%
The high yield savings account at Sallie Mae bank is now offering an Annual Percentage Yield of 1.40%. A quick look at my list of the best online savings accounts will show you that this brings Sallie Mae to the front of the line for standard, no minimum balance required accounts.
As a reminder, Sallie Mae has been around a while but recently started this savings account to compliment their other financial products. This new savings account is FDIC insured, has no minimum balance or deposit requirements, and has no annoying fees. This account also has a special tie in for all you Upromise users, a 10% bonus on Upromise savings.
Read more about them in my review of Sallie Mae bank.
Sallie Mae Recommendation for Affording College
It being graduation season, I thought I should mention something about Sallie Mae’s 1-2-3 approach to saving for college. They recommend you pay for college using needs-based grants, scholarships, and savings first. Then move to federal loans to cover any remaining expenses. Finally, if you have more needs, check out Sallie Mae’s pay-as-you-go private loan.
Our plan for college savings is to use a combination of 529 savings plan funds, scholarships and grants (if available), and leave it up to our kids to cover the rest. They can choose to go the loan route if they want, like we both did. But we’ll highly encourage them to earn some money for college expenses and to be smart about the loans they take out.