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14 Month No Penalty CD @ 4.40% APY - Sallie Mae Bank by Savebetter
January 3, 2023 at
05:30 PM
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Finance
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Last Edited by jersharocks | Staff January 4, 2023 at 01:10 PM
I've posted this before when the rate was lower, but Savebetter.com increased their no penalty Sallie Mae CD to 4.40%. I cancelled my old one and opened a new one.
Savebetter.com has a No penalty CD @ 4.40% APY. You can break this CD anytime after 30 days. With Fed Reserve increasing rates, CDs in the near future will pay better. So lock in 4.4% for now; if you find a better higher earning CD in the future, break it and lock in. There's no minimum and FDIC insured to $250,000. For the bond heads that prefer treasury bonds, the comparable 1 month fed treasury yield is 4.17%, so this yields higher and offers a guaranteed return for longer if you choose to keep it. I haven't found a better rate out there that doesn't lock in your money for a longer period.
For people that want a higher earning CD they also offer a regular 27 mo CD @ 5% APY.
https://www.savebetter.
Savebetter.com has a No penalty CD @ 4.40% APY. You can break this CD anytime after 30 days. With Fed Reserve increasing rates, CDs in the near future will pay better. So lock in 4.4% for now; if you find a better higher earning CD in the future, break it and lock in. There's no minimum and FDIC insured to $250,000. For the bond heads that prefer treasury bonds, the comparable 1 month fed treasury yield is 4.17%, so this yields higher and offers a guaranteed return for longer if you choose to keep it. I haven't found a better rate out there that doesn't lock in your money for a longer period.
For people that want a higher earning CD they also offer a regular 27 mo CD @ 5% APY.
https://www.savebetter.
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Our community has rated this post as helpful. If you agree, why not thank pitt23fan
Interest will be compounded daily and credited on the last
calendar day of each month in which the CD is active and on the
maturity date of the CD.
If funds are withdrawn before the maturity date, then interest is
credited through the date of withdrawal.
Interest will be compounded daily and credited on the last
calendar day of each month in which the CD is active and on the
maturity date of the CD.
If funds are withdrawn before the maturity date, then interest is
credited through the date of withdrawal.
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Our community has rated this post as helpful. If you agree, why not thank jnemezis
SaveBetter is not a bank. It's a New York-based financial technology company ("Fintech" for short) that provides the digital "storefront" where banks can promote their deposit products.
So does it mean SaveBetter account doesn't "really" have FDIC insurance? It seems it relies on FDIC from the end bank, in this case Sallie Mae? What happens if SaveBetter itself somehow going bankrupt or out of business?
Penalties for Early Withdrawal. As noted above, a penalty will be imposed for withdrawals of principal before maturity. If your CD has a maturity of twelve (12) months or less, the penalty we impose will equal ninety (90) days' simple interest on the amount withdrawn subject to penalty. If your CD has a maturity greater than twelve (12) months, the penalty we impose will equal one hundred eighty (180) days' simple interest on the amount withdrawn subject to penalty. If the amount required to be forfeited is greater than the interest earned or paid on your CD, we will deduct the difference from principal. In certain circumstances, such as the death or incompetence of an Accountholder, the law permits, and in some cases requires, the waiver of the early withdrawal penalty
Also I kinda vaguely remember this being 365 days with them on 5 year CDs. You may get a better rate just with some regular savings between 2-3% until the interest rates go over 5.25%
Each customer authorizes the Custodian Bank to hold the customer's funds in a custodial capacity in order to facilitate the customer's deposits to and withdrawals from deposit accounts at various Product Banks that the customer requests through SaveBetter.com. The Custodian Bank does not establish the terms of the deposit accounts, or offer the deposit accounts to customers, and provides no advice to customers about deposit accounts. Central Bank of Kansas City, Member FDIC, d.b.a. Central Payments is the Service Bank. Custodian services are provided by Central Bank of Kansas City and Lewis and Clark Bank.
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The only risk with treasuries is that since you can trade them on the secondary market, it's possible that their value can fall in the short term. Note that with a short duration treasury like one year, it would be hard to lose money on it if you held it for at least 2-3 months.
I don't think there is anyone who should choose a lower yielding CD with the same term as a higher yielding treasury. I can see the convenience of HYS luring people away from treasuries in exchange for lower returns, but I don't see why someone should pick this CD.