Earlier today, Sallie Mae Bank increased the interest rate offered on its savings account 50 basis points to 1.4% APY. This is one of the highest interest rates available. I’ve shared my thoughts about opening a Sallie Mae Bank savings account in this review.
Sallie Mae ties directly into the Upromise savings plan, a program which gives you cash back for purchases. While the main purpose of Upromise is to save for future or current college expenses for yourself or your children. With a Sallie Mae bank account, you can transfer your cash back directly to the bank.
Furthermore, Sallie Mae will match 10% of your Upromise earnings each year if the two accounts are linked. I’m a fan of Upromise. I’ve connected my account to the credit card I use primarily for spending, as well as the loyalty card for my grocery store, so I earn cash back when I buy products I would have purchased anyway.
Updated March 21, 2011 and originally published May 10, 2010.
{ 5 comments… read them below or add one }
It would be most helpful if you could check whether these savings account you tell us about will handle Living Trusts. Many don’t and there usually isn’t any information on web site about that…a call is necessary.
Have found your tips most helpful and use some…when Family Trust account is available.
Thanks for the suggesting, Valerie. I’ll look into that.
Are you saying that the money is not restricted to the SLM savings account?
I’m not sure what you mean. The Upromise account is not restricted to Sallie Mae Bank. You can withdraw money from Upromise in a variety of ways.
I’m thinking about doing this. I’ll be honest, I don’t make much money on my UPromise account (apparently I only have something like $14 after being a member since 2006…oops!). But the match sounds nice, plus the interest rate (back down to 1.1%) is in fact more than what ING is giving me right now. Not sure if it’s a problem that I don’t really earn much in UPromise, if that means the match isn’t really worthwhile, or if they’ll ding me in fees for not having anything to transfer. I’m assuming I could link another account to it for transferring in money.
Sounds like from your other review that you have an like this savings account?