Sallie Mae Raises One-Year CD APY to 4.2% as Banks Compete for Deposits

According to CNBC, Sallie Mae lifted the annual percentage yield on its one-year certificate of deposit by five basis points to 4.2% last week, putting the rate about 25 basis points above the peer median APY of 3.95%, according to BTIG analyst Vincent Caintic. Other firms are also advertising higher CD yields, including Popular Direct at 4.25% on a 12-month CD, CIBC at 4.15%, Synchrony Financial at 4.3% on a 16-month CD, Marcus by Goldman Sachs at a similar rate on its 18-month CD, and Happen Bank at 4.2% on an 11-month CD. The article also said Fed funds futures imply roughly a 65% chance the Federal Reserve will raise its benchmark lending rate by a quarter percentage point at its Sept. 15-16 meeting, to a range of 3.75% to 4%.