Issuing a Certificate of Deposit, or CD as it is commonly known, is a great way to let your money grow. Just like harvesting crops, this service relies on the principle of you can reap only that which you have sown. Simply put, the more money you invest, the greater your rewards will be. But what happens if you want to open a CD account, yet you don’t have the minimum deposit of $1,000 or even $25,000 that some banks ask for?
In this case, Sallie Mae Bank is perfect for you. Being one of the very few banks that absolutely does not require any minimum deposit, you can start putting aside your hard-earned money, whatever amount it may be, and allow it to mature.
The Good Side
Although the highest reported APY today is fixed at 1.15%, with Doral Bank leading the pack, you can still get the most value of your money with Sallie Mae Bank. Being one of the only two CD competitive banks that offer no minimum deposit, it still provides a higher APY than the other. At 1.00% APY, it outshines Ally Banks’s 0.99%, despite its same offer of no minimum deposit. Your money is compounded daily at the same rate, which still allows you to enjoy more benefits than those which are compounded monthly or annually.
The Down Side
After a 12-month period, you get the expected 1.00% APY, and at 36 months, this grows to 1.30% APY. However, by the end of 60 months or 5 years, an APY of 1.50% is all you get. This is a far comparison with most banks’ 2.00% APY for the same time period. If you are looking for a long-term arrangement, you might do well with offers from banks such as Alma Bank or First American Bank, which are currently offering a 2.00% or more APY.
In it for the Short Run
If you are thinking of holding it out for only a year or two, Sallie Mae Bank is your best choice. They do not require a hefty sum, but you’re sure that your money will grow at a rate that’s comparable to others. There are no monthly fees as well. Once you reach maturity, you can withdraw the whole lot with full and guaranteed returns. Or you can always renew your account.
The Sallie Mae CD offer is best for first time investors who want to test the waters before diving in. If you want a short-term, no minimum deposit CD with competitive rates, then this bank’s for you.