Good afternoon,
Getting nervous about the market and want to park some money for a while? Sallie Mae has a deal for you.
Bankrate.com lists Sallie Mae, as a top pick for a regular savings account. The company is based near Newark.
Sallie Mae rate got a five-star ranking from Bankrate, based by offering no minimum investment. A couple of other banks have slightly higher rates but require a $25,000 minimum.
Capital One 360, which has operations in Delaware, offered a 1.85 percent rate but requires a $10,000 minimum deposit.
The bank’s predecessor, INGDirect, pioneered online banking from Wilmington. After the Dutch-based insurance giant that owned the direct bank got into trouble during the financial crisis, European regulators forced a sale to Capital One.
Sallie Mae has quietly expanded beyond student loans and now has a presence in online banking. Along the way, it shed student loan collections operations and regulatory headaches by spinning off Wilmington-based Navient.
Another rival in the online space is Wall Street investment bank giant Goldman Sachs, which is now offering banking products under the Marcus name.
Two percent interest rates won’t bring a tidal wave of cash and even two-year certificates of deposit typically yield less than three percent.
But interest rates are rising and if the stock market remains volatile, we could see more money end up in old-fashioned savings accounts. It’s still better than hiding money under your mattress.
Enjoy your day. The newsletter returns tomorrow. – Doug Rainey, publisher.
