Advertised Interest Rate and Annual Percentage Yield (APY) for Certificates of Deposit may change after maturity, applies to personal accounts only, and are accurate as of 08/02/2023.
A penalty may be charged for early withdrawal. Fees could reduce earnings.
Funds deposited in an Account and any other account(s) at Sallie Mae Bank are collectively insured up to the applicable limit by the Federal Deposit Insurance Corporation ("FDIC").
See the forum thread for additional discussion of this deal.
This collaborative space allows users to contribute additional information, tips, and insights to enhance the original deal post. Feel free to share your knowledge and help fellow shoppers make informed decisions.
Advertised Interest Rate and Annual Percentage Yield (APY) for Certificates of Deposit may change after maturity, applies to personal accounts only, and are accurate as of 08/02/2023.
A penalty may be charged for early withdrawal. Fees could reduce earnings.
Funds deposited in an Account and any other account(s) at Sallie Mae Bank are collectively insured up to the applicable limit by the Federal Deposit Insurance Corporation ("FDIC").
See the forum thread for additional discussion of this deal.
"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of twelve (12) months or less, the penalty we impose will equal ninety (90) days' simple interest on the amount withdrawn subject to penalty.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than twelve (12) months, the penalty we impose will equal one hundred eighty (180) days' simple interest on the amount withdrawn subject to penalty.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."
From the small print (makes me a bit nervous): SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE.
I know they're FDIC insured so you can get your $ back, but does this mean they can modify the rate and you don't get the 5.5%?
No it means they can stop offering it at anytime. But once you buy your cd. Your account is locked
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from DaronMax
:
Is this a no penalty cd? Thanks
It is not.
"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."
There are a lot of variables to ask this question.
Have 160K CD that just matured. Thinking of reinvesting to something. I never had bought Tbills before. I don't need the money for the next year or so. What would be the Best thing for me to do?
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from Hawaiiana
:
Have 160K CD that just matured. Thinking of reinvesting to something. I never had bought Tbills before. I don't need the money for the next year or so. What would be the Best thing for me to do?
No state tax on Tbills if that is of consequence.
The treasurydirect website can be a PITA (for some...it wasn't for me) if not using a brokerage firm
Rates should be similar
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from Hawaiiana
:
Have 160K CD that just matured. Thinking of reinvesting to something. I never had bought Tbills before. I don't need the money for the next year or so. What would be the Best thing for me to do?
SGOV is an ETF that ladders short term T-bills. Every month it craps out a dividend and it's much easier to liquidate if you need to than T-bills that you buy directly. Not FDIC insured though, but if the government defaults on treasuries then FDIC insurance is probably toast too, so it seems pretty safe.
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"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."
It's on their huge terms page here [salliemae.com].
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I know they're FDIC insured so you can get your $ back, but does this mean they can modify the rate and you don't get the 5.5%?
Our community has rated this post as helpful. If you agree, why not thank jiggyblau
"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."
It's on their huge terms page here [salliemae.com].
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Our community has rated this post as helpful. If you agree, why not thank Hawaiiana
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Our community has rated this post as helpful. If you agree, why not thank iahawks550
The treasurydirect website can be a PITA (for some...it wasn't for me) if not using a brokerage firm
Rates should be similar
Our community has rated this post as helpful. If you agree, why not thank ryan3531
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