Sallie Mae launches new savings accounts

RESTON, Va.

Student lender Sallie Mae said Tuesday it has launched new online savings account and certificate of deposit programs for families trying to save for college.

Sallie Mae, formally known as SLM Corp., said its new FDIC-insured savings account offers a 1.35 percent annual percentage yield. The rate is significantly higher than the overnight average money market savings account yields of 0.84 percent listed by Bankrate.com on Tuesday.

The Sallie Mae account requires no minimum balance to start, the company said in a statement. The account also carries rewards program, which enables customers to earn money back on eligible purchases from grocery stores, online retailers, restaurants and gas stations.

The company also announced new certificates of deposit requiring no minimum balance or monthly fees.

Included are 12-month CDs with a 1.50 percent APY and 5-year CDs at 3 percent APY.

Both rates were higher than the Bankrate overnight averages, which listed 12-month CD yields at 1.42 percent and 5-year yield averages at 2.89 percent.

The company branded the new college savings offerings upromise and launched a Web site at: http://www.upromise.com

SLM shares rose 10 cents to $11.05 in afternoon trading.