RESTON, Va. – Sallie Mae, a one-time partner, now major competitor of credit unions, yesterday announced it is offering federally insured CDs to help parents save for college.
The new CDs, which will be marketed under Sallie’s Upromise label, will offer rates of 1.50% APR for 12-months, 2.20% for 36 months and 3% for 60 months, with no minimum balance required.
Customers can earn more by signing up for Sallie Mae’s free Upromise rewards program that enables members to earn money back on eligible purchases from hundreds of grocery stores, online retailers, restaurants and gas stations. Upromise balances of $10 or more may be automatically transferred into the High Yield Savings Account, and customers with a savings account balance of $5,000 or more or a monthly automated savings plan of $25 or more may qualify for an annual match of 10% of their prior year’s Upromise rewards.
Sallie Mae was chartered in 1974 to facilitate the secondary market for guaranteed student loans made by credit unions and banks, then was privatized in 2003 when it grew to dominate the market as the biggest originator of student loans.
The new CDs will be issued by Sallie’s federally insured banking subsidiary, known as Sallie Mae Bank.
