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Salem Five Direct's New eOne Checking Account - Rates up to 5.30% with a 6.10% 60-Day Promo and a $25 Bonus

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Salem Five Direct
Update 4/15/09: Rates have fallen. New rate tiers: 1.50% to 1.65% APY.
Update 1/14/09: Rates have fallen. New rate tiers: 2.00% to 2.50% APY.
Update 5/04/08: Rates have fallen. New rate tiers: 3.00% to 3.50% APY.
Update 3/18/08: Rates have fallen. New rate tiers: 3.10% to 3.60% APY.
Update 2/05/08: Rates have fallen. New rate tiers: 3.50% to 4.00% APY.
Update 9/28/07: Rates have fallen. New rate tiers: 4.70% to 5.10% APY.
Update 8/1/07: The 6.10% 2-month promo has ended for new accounts.

Salem Five Bank has started an online division called Salem Five Direct which is offering a checking account called eOne with rates up to 5.30% APY. It has a tier rate structure that starts a 5.00% APY for balances up to $10K. Balances between $10K and $25K earn 5.10% APY. Balances between $25K and $100K earn 5.20% APY and balances over $100K earn 5.30% APY. Below is a summary of the key features of this account based on info from their website:

  • 6.10% APY for first 60 days on balances of $100K and over
  • $25 bonus for enrolling in direct deposit
  • $100 initial deposit required
  • No monthly fee or minimum balance requirements
  • ATM refunds up to $15 per statement cycle
  • Unlimited checking transactions
  • Free online bill pay and debit card
  • Account requires eStatements and is not available at Salem Five branches

I called their toll-free number at 800-322-2265 and was told that this eOne account just started this week. I confirmed that it is a checking account with no monthly withdrawal or check limits. Below is a list of features that I received from the banking rep:
  • The first order of 25 checks are free
  • Online application must be printed, signed and sent in along with a check for the initial funding.
  • Account can also be funded by wire transfer (the $20 inbound wire transfer will be waived).
  • POD accounts are allowed. This must be written on the application since there are no fields for this.
  • Some readers have reported a hard credit pull. CSR said that only a ChexSystem verification is done, but CSRs are often not very familiar with this issue.
  • There is no Electronic Funds Transfer System for making ACH transfers. However, the bill payment system can be used for this. The CSR didn't think there were any dollar or usage limits for this.
  • They do not block ACH transfer requests initated from your other bank accounts
  • Wire transfers fees are $20. One inbound wire transfer fee is waived per statement cycle.
  • ATM rebates (up to $15) are credited automatically at each statement cycle.
  • There's no closing fee. Interest earned before the end of the statement cycle will be forfeited.
  • Hold times for checks are either 1 or 5 days depending where check is from. Interest is paid from the day you deposit a check.

I was also told that except for the 6.10% rate, all the others are the standard rates. I guess time will tell if it'll remain competitive. The standard rates would be competitive for a money market account, but for a checking account it's at the top. You can get higher rates on some checking accounts but these are rewards checking accounts that require debit card usage and direct deposits. The eOne account will definitely deserve a place on my list of the best checking accounts.

Salem Five is FDIC insured (FDIC Certificate # 23296). Note that the FDIC page only lists the SalemFive.com URL and not SalemFivedirect.com. One thing to note, however, is that the toll-free number listed at Salem Five Direct is the same one listed at Salem Five.

Accounts with funds over the FDIC limit are privately insured by the Deposit Insurance Fund (DIF). DIF insurance applies to all Massachusetts state-chartered savings banks. A reader noted that Massachusetts had a number of banks fail in the 80's and not one person lost a penny in a DIF bank.

[Update 6/2/07: Reader confirmed number of checks on first order is 100 instead of 50. Also, updated hold time info. Update 5/23/07: Website now states only the first order of checks are free. Added hard pull info from readers. Update 8/22/07: Changed # of free checks from 100 to 25 based on reader's inputs.]

  Tags: Salem Five Direct, checking account

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Comments
128 Comments.
Comment #1 by Kurt (anonymous) posted on
Kurt
Can you simulate a direct deposit using a transfer from another online bank account to qualify for Salem's New eOne account?

Because many of the bonuses offered require Direct Deposit, can I use any other online bank account to simulate Direct Deposits to another bank?

Thanks,

Kurt

2
Comment #2 by scott (anonymous) posted on
scott
How the heck did you find this deal? I am on Salem Five site every day and don't see it. Looks like it's time for a new account with them. I opened their eChecking and eSavings account a few months ago. Checking paid no interest but Savings was 5.25% but dropped to 5% recently and they no longer even offer. Bummer is account is new money only but I have been pulling some out since rate drop so can move that back in. Did you speak to Michael? I just talked to him and he said he spoke with someone that had a lot of questions, Guessing that was you

1
Comment #3 by Anonymous posted on
Anonymous
Can anyone offer a comment regarding their bill pay? I talked to someone at Salem Five but it didn't sound like checkfree, so I might just stick with schwab.

1
Comment #4 by scott (anonymous) posted on
scott
Not sure what Checkfree is but I use their bill pay and find it very good

1
Comment #5 by Anonymous posted on
Anonymous
I assume that the website statement "earn up to 6.10% on every dollar" means if your balance is $100,001 then you'll earn that rate on the entire balance?

1
Comment #6 by metrocard (anonymous) posted on
metrocard
I went looking for Checkfree bill pay too and it doesn't appear to be unless their demo is out of date.

1
Comment #7 by Anonymous posted on
Anonymous
Re wire transfer, if you originate the transaction from a bank ie. BoA, do you just have to pay the BoA outbound fee and not the inbound for the receiving bank or do you have to pay both?

1
Comment #8 by Anonymous posted on
Anonymous
re wire transfer, when you originate the transaction from a bank ie. BoA, do you have to just pay the BoA outbound fee and not the inbound for the receiving bank or do you pay for both?

1
Comment #9 by Anonymous posted on
Anonymous
When you originate a wire transfer, if the originating bank charges a fee, then you pay the fee to the orginating bank.

If the receiving bank also charges a fee for receiving a wire transfer, they will generally deduct that fee from the amount of the transfer before crediting your account. Some banks might credit your account for the full amount and then deduct the fee from your account.

1
Comment #10 by Anonymous posted on
Anonymous
Has anyone use any of the online checking account? Is it easy to use and do we still need our regular checking account?

1
Comment #11 by Anonymous posted on
Anonymous
i didnt apply yet cuz i thought they asked too many personal questions: Why do they neeed to know "city of birth" and "mother's maiden name", along with all the "standard" personal info that other bank applications ask?

1
Comment #12 by Anonymous posted on
Anonymous
Do they do a hard inquiry to credit report? Since it is a checking account, I'd assume yes?
This account seems somewhat comparable (5% vs gmacbank mma 5.3% for <10k) and has greater refunds of ATM fees we pay to owners of non-Bank ATM use ($15/statement refund vs gmac's $6/statement refund).

1
Comment #13 by scott (anonymous) posted on
scott
Have opened a couple checking accounts with Salem Five and never a hard pull. I find their online checking account fine. I guess it does not have the bells and whistles of checkfree but I have been using it to pay all my bills for the last year and no problems. Also is Simple to setup and since you get paper checks with it you do not need any other checking account. This makes it better than ING's EO since you can get the float

1
Comment #14 by Anonymous posted on
Anonymous
I have a question for Scott. When using their billpay, are the funds debited from your account when the transcation is initiated (like old Checkfree) or on the day the recipient gets the funds (like new Checkfree)?

1
Comment #15 by scott (anonymous) posted on
scott
On bills that they issue paper checks they take funds out day after you initiate. On electronic payments it seems to be when recipient get funds. I never really paid attention to this but just checked. I saw I initiated an electronic payment to the gas company on 5/3 and funds were not debited till 5/7

1
Comment #16 by Brian (anonymous) posted on
Brian
So much for no hard pull - I had a hard pull on Equifax yesterday by Salem Five.

1
Comment #17 by Richard (anonymous) posted on
Richard
I got a hard pull from Salem Five on equifax. Requested ATM mastercard, no other salem five accounts..

1
Comment #18 by scott (anonymous) posted on
scott
No pull for me but I did not ask for card plus have other checking accounts with them.

1
Comment #19 by Banking Guy (anonymous) posted on
Banking Guy
Thanks everyone for your comments. I just got lucky finding this deal.

I've updated the post regarding your inputs on the hard pull. Experience is worth much more than what the CSRs say on this issue.

1
Comment #20 by st942093 (anonymous) posted on
st942093
I asked Salem5 to convert my eChecking and eSavings account to this new eOne account.
I basically wanted to keep the same checks and debit card and did not want to set-up bill pay again.
They refused to do it.
Has to be a new account with a new set of checks :-(

1
Comment #21 by scott (anonymous) posted on
scott
I was told that this account requires new money, I think that's bull since it does not say that in offer. The CSR who told me this knew how much I had in the eSavings and I think he just did not want me moving all of it to this new account. Just adds a bit more work, I took a bunch out and put it in BoA. Then funded this account with a check from BoA. I don't think you will need to setup bill pay again. I noticed I was able to login into my accounts from that Salem Five Direct link, So I this new account will show up on your main page and you can just pick which account to use to pay from the drop down box

1
Comment #22 by virgquest (anonymous) posted on
virgquest
I talked to a CSR at SalemFive today. He told me that SF always does a hard pull for checking accounts, so I'm betting the first CSR was just misinformed.

Regarding rates, he said that rates may be a little higher for the first 6 months after a new product/account is introduced, but that this account is designed to be competitive with current online savings and MM accounts so he doesn't expect the rate to drop much.

I also asked about making deposits at ATMs and he directed me to this page on their website:
http://salemfive.com/support/atmAccess.html
It seems that deposits can be made at NYCE or VISA/PLUS ATMs and there are links to search for ATMs in your area. This was important to be because I am uncomfortable sending endorsed checks through the postal service and I don't want to pay to wire money out of a local account or wait 6-8 business takes to xfer $$ through an online savings account into my SF account.

On a side note, after navigating the phone tree, I reached a CSR right away, no hold time. He was very friendly and provided me with his name and a direct extension in case I had any other questions. He could have been motivated by a commission or points for every new account, but either way, I appreciated the quick and good service. :)

1
Comment #23 by scott (anonymous) posted on
scott
That is not true. In the last 2 years I have opened 3 different checking accounts with them and never a hard pull. Did not get one on this new account either. I think only the people who ask for the debt card get a pull.

1
Comment #24 by free@40 (anonymous) posted on
free@40
Banking Guy -- What are "POD" accounts?

1
Comment #25 by Banking Guy (anonymous) posted on
Banking Guy
Sorry for not including the full name of a POD. It stands for Payable on Death and it allows you to name beneficiaries on the account.

POD accounts can be used to go above the $100K FDIC limit for an individual non-retirement bank account. This FDIC page has a good description of this.

1
Comment #26 by Anonymous posted on
Anonymous
I submitted an application online last week. A couple of days later I received an email from Salem Five saying I had to fax or mail them a copy of my social security card as well as another form of ID (driver's license, etc). I've openend many many accounts and that was never requested. Seems odd to me. Anyone else had the same experience with Salem Five?
Thanks,
Neal

1
Comment #27 by scott (anonymous) posted on
scott
Little update. I mailed in application and funding check Thursday and when I just logged into my regular Salem Five (Tuesday) I noticed the eOne checking is included. Nice thing is I don't have to re-setup bill pay. Can just use this new account to pay from.

1
Comment #28 by scott (anonymous) posted on
scott
I know some don't like because of no ACH. Not sure why that matters. I have linked Emigrant and Countrywide to Salem Five and have no problem pushing or pulling money, And always takes just one day. Couple other nice features. Hold times for checks are either 1 or 5 days depending where check is from. Much better than most. I got a 5 day hold on my initial funding of this account but one quick call to manager and she put a change on my account to no more holds. Once you have a relationship with them they have no problem doing that. Also they pay interest from the day you deposit a check, So depositing on Friday always gets you some overlapping interest

1
Comment #29 by scott (anonymous) posted on
scott
just got my free checks and was surprised it was 100, Not 50. For how few I use that should last me a couple years

1
Comment #30 by Banking Guy (anonymous) posted on
Banking Guy
Scott, Thanks for providing all the details. I've updated the post with this.

I guess the only reason that the lack of an ACH may be an issue would be for those who would like to have just one main online checking/savings account.

I could see someone having one local free checking account that doesn't pay any interest but provides local convenience and one online checking account which provides high interest and some other perks like Salem Five. In that case the lack of an ACH service would be an issue.

For people like us who have several online accounts, it's no big deal.

1
Comment #31 by Anonymous posted on
Anonymous
To reiterate what Banking Guy says, I think ACH can be important if you are looking to have one main "hub" as a primary place for your funds. An ideal situation would be to have unlimited ACH connections with the faster one day transfer speed. HSBC, for example, allows unlimited connections to other institutions, but the speed is pretty slow.

I do think Salem Five's other features are worth the lack of ACH origination, but others may have differing priorities. My main concern at this point would be setting up the account, changing a lot of automatic payment and direct deposit info, then having SalemFive decide to reduce the APY or otherwise change the feature set to be less attractive.

1
Comment #32 by scott (anonymous) posted on
scott
Ok I understand why many need the ACH. Salem Five was already my main hub bank with a branch only a couple minutes away from me, so was a great place to run checks over to. I also understand the worry of opening only to have rates drop. They seem to offer new products quite frequently and all I do is open the new one and transfer from old to new. I was one of the first to have a great product they were offering a couple years ago called the Platinum checking account which paid you the one month Libor rate. They changed it soon after to Libor minus 1/2%, but were good about grandfathering me to the original terms for almost a full year. Then when they lowered me I saw them offering the eSavings account which paid 5.25%, I moved my money to that. Now they lowered that to 5% so moved my money to this new eOne account. They don't have "New" money requirements so you should always be able to move your money to their latest deal. Also I have never had to change my bill pay because you just click whichever account you want to pay from

1
Comment #33 by Anonymous posted on
Anonymous
For a newbie, what exactly does "no ACH" mean? All my credit cards, for example, are payed by giving the credit card company my bank info, and the credit card deducts my payment via ACH. I assume I could still do this with Salem Five? I assume "no ACH" refers to some other type of ACH initiation?

1
Comment #34 by scott (anonymous) posted on
scott
Yes, You could still do that at Salem Five, That is how I pay my cards. The no ACH at Salem just means that you cannot setup and initiate ACH pulls and pushes from there

1
Comment #35 by David (anonymous) posted on
David
Maybe a silly question, but does being a member of FDIC mean that THIS account is FDIC insured? Money markets are not generally FDIC insured unless they say they are insured accounts.

1
Comment #36 by scott (anonymous) posted on
scott
Banks "Money Markets" are FDIC insured. It's brokerages "Money Market Funds" that are not

1
Comment #37 by Anonymous posted on
Anonymous
I too was asked for a fax of my social security card (I have no idea where that thing is - I have not had a requirment to use it in many years) and another form of ID.

They did work with me and let me use a military ID in place of the other two.

I will be very disappointed if they don't maintain top checking rates.

I just checked, and yes, they did do an Equifax credit pull.

1
Comment #38 by Anonymous posted on
Anonymous
..Oh, from above.. I did not request any sort of credit or debit card and got a hard pull.

This is just an fyi.

I don't really care about hard pulls.

1
Comment #39 by routing (anonymous) posted on
routing
I got 50 checks instead of 100.
I don't know why. can I ask them more ( free) checks ?

1
Comment #40 by Michael (anonymous) posted on
Michael
Everybody has good days and bad days.

But these guys seem to have many bad days.

First they told me there is no hard pull credit check. There is.

They want all sorts of ID faxed to them - including a social security card.

I indicated in the inital app that I wanted an app mailed to me -- they forgot.

I faxed a copy of my IDs. They misfiled it.

For some reason, you have to fill the whole application twice. They could just send a signature card like most banks do. First you do the whole thing electronically and send it in, and now they are mailing me a hard copy to fill out the thing again and send it back in.

I still don't have this account open yet, and I've been mess'in around with it for weeks as they fumble and stumble around.

I'll put this account in kind of a mothball status and see what happens, cause I think these guys will not maintain this account long term.

1
Comment #41 by Michael (anonymous) posted on
Michael
Oh, and banking guy, your links to your Salem Five info were mislinked and they go to the Salem Five Direct web site.

You put lots of good info in your write up on Salem Five and it would be good if people can read your stuff.

Thanks, Michael

1
Comment #42 by Anonymous posted on
Anonymous
They did a hard credit check with Experian. The csr told me they only do the Chex system.

1
Comment #43 by scott (anonymous) posted on
scott
They must have pulled in a bunch, I just noticed they added this:
$1,000,000 or more 0.50% So if you put in over a million get it out quick

1
Comment #44 by Banking Guy (anonymous) posted on
Banking Guy
Perhaps many multi-millionaires feel comfortable with going way above the FDIC limits due to the DIF insurance.

1
Comment #45 by Anonymous posted on
Anonymous
The only link to "disclosures" is at the bottom of the page and it redirects from salemfivedirect to salemfive (the parent bank's website), which is entirely useless since that entire website goes to great pains to avoid any mention of the "eOne" checking that is available on the salemfivedirect site. Their account disclosure page makes no mention of the eOne checking and there are a lot of questions I have. Such as, what is the monthly/daily limit on withdrawls using the ATM card? A $15/month reimbursement for ATM surcharges isn't too great if one is limited to $100/day, for example. I have seen internet checking accounts with "MONTHLY" ATM limits as low as $200 buried deep in their disclosures. Does anyone have a copy of the account disclosures, or a link, or any answers to the ATM question? Thanks!

1
Comment #46 by scott (anonymous) posted on
scott
I can answer your ATM question. I have the ATM card and you can withdraw up to $300 a day. You could do this every day and get over $9k a month out

1
Comment #47 by Anonymous posted on
Anonymous
I recently signed up for the eOne checking and only received 25 free checks. When I called to inquire they told me that the number of free checks given for the eOne account has always been 25 and anyone who received more (50 or 100 as previously reported) was the fortunate recipient of a mistake by the check printing company they use.

1
Comment #48 by scott (anonymous) posted on
scott
Looks like those of us who got in early benefited from the mistake. I thought I got 100 since it was 4 books and I figured each had 25, but there were 30 so 120 total

1
Comment #49 by Anonymous posted on
Anonymous
I follow the Salem comments in this comment section. Wish you would fix the link to this blog from the list of all deals Banking Guy.

Thank you

1
Comment #50 by Anonymous posted on
Anonymous
Bankrate.com isn't listing Salem Five Direct in their interest checking comparison today. Did I just miss them, or is Bankrate.com having issues with Salem Five Direct?

1
Comment #51 by Anonymous posted on
Anonymous
So far... very happy with my eOne account. Received my first interest credit and ATM surcharge reimbursement yesterday. Hopefully this account and its terms remain the same, or competitive at least, as I wouldn't mind sticking around here.

1
Comment #52 by Anonymous posted on
Anonymous
Lucky are those who received more than 25 checks on their first order. I believe its around $8 for a box of 25 single checks when reordering from the bank.

1
Comment #53 by Anonymous posted on
Anonymous
I just submitted my application to open a new account with Salem Five Direct on June 20, 2007. Then I received an email from the bank to request a copy of my SSN and a copy of my driver license on June 21. I then faxed them the required documents on June 22. Two hours later, I received an email from the bank telling me that my application has been declined. The reason is that they cannot verify my information! These guys are just ridiculous - all the information I have been submitted are true and I have a credit score of more 730(BTW, this bank will do a hard credit inquiry).

Below are the follow-up story:
-----------------------------
Here’s my follow up with the Salem Five Direct:

1. I requested a copy of Equifax credit report which showed Salem Five Direct had pulled a hard inquiry on my credit report.
2. I called the customer service asking why my account application was declined. The first customer services representative told me that was caused by their computer server error.
3. I then called back and talked with a supervisor, and was told that I was declined because the address on my driver license did not match the address with my account application. I told them it was because I moved server al months ago and did’t get time to update my drive license address. Guess what she said? She said that I should get a new driver license first before I applied for their account. I then asked whether I could submitted other documents, such as utility bill, that had been listed in their email, and was told NO - because I had submitted document already and could not submitted other documents!!!

Obviously, they just don’t want to open account for me. I really don’t understand why - I have an excellent credit history and a credit score of more than 770! The only thing I can think is that my initial deposit was just $200, but I usually do not send initial check with a big amount since it can be lost. Also, I have planned to transfer 150K fund to the new account. I think this bank has discrimination on individuals. Does anyone know where to file a complain against it?

-----------------------------
Another follow-up story:

I finally get a new driver license with my current address on it. Then I called the customer service to review application again! You know what, they asked me to submit a new application rather than approve my previous application. What a joke! OK, I finally give up! Bye, Salem Five!

1
Comment #54 by M (anonymous) posted on
M
I'm looking for the best interest checking account that requires a low (1$-100$) starting deposit as well as a low (1$-25$) minimum balance that also allows for checks and cash to be deposited at ATMs.I don't want to risk stolen/lost checks through the mail.

1
Comment #55 by Anonymous posted on
Anonymous
m,

If you do decide to give Salem Five Direct a try... I have a local account with WaMu (their free checking account) which i can deposit checks and cash into and they have free outgoing wire transfers. Salem Five Direct will reimburse up to $20 of incoming wire transfer fees per statement cycle.

1
Comment #56 by Anonymous posted on
Anonymous
also about wamu they offer ach transfers, so you can use them to deposit money into the e0ne account, instead of the wire transfer, so you don't have to fill forms or worry about fees

1
Comment #57 by Anonymous posted on
Anonymous
Does the Salem Five direct eOne account support Quicken and MSMoney?

Thanks

1
Comment #58 by Anonymous posted on
Anonymous
ON THE CONSUMER FEE SCHEDULE GIVEN TO ME (FROM 6/07), IT SAYS THAT BANKING THRU QUICKEN IS AVAILABLE FOR $5/MONTH. AND I CANT REMEMBER WHERE, BUT I READ ON A FORUM SOMEWHERE THAT A USER REPORTED SALEM FIVE IS ON THE LIST OF MS MONEY SUPPORTED FINANCIAL INSTITUTIONS. I DONT USE ANY OF THE TWO, BUT JUST PASSING DOWN THE INFO I HAVE FROM OPENING MY ACCOUNT.

1
Comment #59 by Anonymous posted on
Anonymous
Well that sucks that they charge $5 month/ $60 per year for using Quicken and Money. That is a deal breaker for me if they are not free. Anyone know of a good interest checking account that offers Quicken and Money for free?

1
Comment #60 by Anonymous posted on
Anonymous
WELL, I KNOW THAT QUICKEN IS $5/MONTH, BUT I DID NOT MEAN TO IMPLY THAT THERE IS ALSO A CHARGE TO USE MSMONEY. AS FAR AS I KNOW, THERE IS NO CHARGE TO USE MSMONEY AND SALEM FIVE IS SAID TO BE AN MSMONEY FINANCIALLY SUPPORTED INSTITUTION. BUT YEAH, SORRY ABOUT THE QUICKEN.

1
Comment #61 by Anonymous posted on
Anonymous
I KNOW THE APY IS A WHOLE POINT LOWER, BUT YOU MIGHT CONSIDER ING DIRECT ELECTRIC ORANGE CHECKING IF YOURE CONCERNED ABOUT QUICKEN AND MONEY BEING FREE.

1
Comment #62 by Anonymous posted on
Anonymous
For accounts opened after 7/30, earn 5.30% APY on average daily balances of $100,000-$999,999. So long to the 6.10% for 2 months.

1
Comment #63 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the update. Sorry to see the promotion end. I've updated the post with this info.

1
Comment #64 by Anonymous posted on
Anonymous
Sorry to be dense, but I still don't understand the ACH issue. What do you mean by not being able to set up or initiate ACH "pulls and pushes"? Does this mean I can't easily transfer funds between the Salem5 account and my accounts at other institutions?

1
Comment #65 by Anonymous posted on
Anonymous
ALSO, why is it important whether or not they do a hard-pull on your credit history? I would want to request a debit card so I can easily access my funds, so I can't avoid a hard-pull...

1
Comment #66 by Anonymous posted on
Anonymous
RE: ACH issue

You won't be able to setup external transfers when you are logged into your SalemFive eOne account. But this does not mean you can't easily transfer funds from your accounts at other institutions. For example, I'm able to transfer money into and out of my eOne account from my Countrywide Bank account. SalemFive does not stop you from pushing money into or pulling money out of your eOne account when transfers are initiated from your outside accounts.

1
Comment #67 by Anonymous posted on
Anonymous
Oh, ok--sounds like the ACH deal doesn't matter in my case. Thanks for the info! As for the hard-pull on my credit history, I don't suppose that'll make much difference as I don't plan on taking out any significant loans any time soon...

1
Comment #68 by Anonymous posted on
Anonymous
Salem Five did a hard credit pull through Equifax. I was not asking for a debit card and there was no warning they would be checking my credit. It has been over 3 weeks now and they still do not have the account set up yet. I'm disappointed.

1
Comment #69 by Anonymous posted on
Anonymous
Hmmmmm. 3-weeks?! Maybe I should go ahead and set up an Electric Orange checking account in the interim. It earns 3.93% on balances under $50,000 vs. the 5.1% to 5.2% I'd earn with SalemFive...and there's no $25 bonus, but it'll be much quicker to open it--just in case SalemFive takes forever. Have others had this same lag in getting the SalemFive account set up?

1
Comment #70 by Anonymous posted on
Anonymous
Yeah, it took a little patience on my part because it felt like a long time before it was finally opened. I just tried to understand that it is a smaller bank and going national with eOne must have put a little strain on them. But after finally having it open a while, I've been pretty happy with customer service and the terms of the account thus far. So no complaints here. Hopefully it works out for you too if you decide to go with Salem Five Direct.

1
Comment #71 by Anonymous posted on
Anonymous
Be aware that you can't transfer any funds online. You can't link to any external accounts. All transfers must be done by paper check or wire transfer. Talk about stone age.

1
Comment #72 by Anonymous posted on
Anonymous
PREVIOUS COMMENT IS UNTRUE. WHILE IT IS TRUE YOU CANNOT MAKE TRANSFERS TO OR FROM EXTERNAL ACCOUNTS FROM SALEM FIVE ITSELF, YOU CAN DO SO FROM YOUR EXTERNAL ACCOUNTS INSTEAD. A PREVIOUS COMMENTER MENTIONED THEIR EXAMPLE OF BEING ABLE TO PUSH AND PULL MONEY FROM THEIR EONE ACCOUNT FROM THEIR COUNTRYWIDE BANK ACCOUNT. I DO SO FROM EMIGRANTDIRECT. IT IS TOO BAD YOU CANT DO IT DIRECTLY FROM SALEM FIVE, BUT ALL TRANSFERS ONLY BEING ABLE TO BE DONE BY PAPER CHECK OR WIRE TRANSFER IS INCORRECT.

1
Comment #73 by Anonymous posted on
Anonymous
Do they offer any sort of overdraft protection for this checking account? I could not find it anywhere on their website.

1
Comment #74 by Anonymous posted on
Anonymous
Just reporting back: While I did set up an Orange checking account (took just a 2 days for transfer of money into acct), my SalemFive Eone account is already set up. However, I have to wait to get the account materials in the mail before I can start using it!

1
Comment #75 by Anonymous posted on
Anonymous
Sorry for the ignorance, but how do you know if they actually did a hard credit check or a soft one?

1
Comment #76 by Anonymous posted on
Anonymous
A hard credit check would show up on your credit report under inquiries whereas a soft one would not show up. So you would find this out by checking your credit report from either TransUnion, Experian, or Equifax (but sometimes not all hard inquiries from an institution show up across the board). A lot of Salem Five users have reported Salem Five showing up on their Equifax hard inquiries.

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Comment #77 by Anonymous posted on
Anonymous
I applied for this account online on July 13th and asked them to mail the signature information to me. Salem did a hard credit pull through Equifax on July 17th and sent me an email saying my account was approved. They never mailed the signature card to me. On Aug. 17th, they sent me an email saying my application was withdrawn. I called them back and they said I would have to re-apply. I do not think it is worth another hard credit pull to try again.

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Comment #78 by Anonymous posted on
Anonymous
I had the same thing happen with my app for eOne. I replied to the email that said my app was withdrawn saying that I am still awaiting the app to be sent to me so that I can return it with my initial deposit. I did receive the app finally and sent it back. So awaiting the official opening of my account. My friend also opened an eOne account and has already been able to log in to the site. However, he said that it seems you need to call them to add the bills you want to pay to your account. Is that true?

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Comment #79 by Anonymous posted on
Anonymous
I was able to setup my bill payment after logging on to the website. It was a pretty simple setup so I can't think of a reason why you'd have to call. Perhaps your friend experienced some technical difficulties?

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Comment #80 by Anonymous posted on
Anonymous
I had no trouble setting up my Eone account. I printed out the online application and sent it right off with my check for the opening deposit. So I didn't have to wait for them to send me an application. As for setting up bill pay--not only was it quick and easy (no phone call necessary), but they have a list of payees that they can pull statements from so you can set up automatic monthly payments. For example, I set it up so that my Kohl's charge account has the balance paid in full each month--automatically! I won't have to remember to do it--they'll get the statement directly from Kohl's. How cool is that?!

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Comment #81 by Anonymous posted on
Anonymous
Has anyone used this with Paytrust and/or Yodlee ?

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Comment #82 by Anonymous posted on
Anonymous
New Rates:

Balance APY
$0-$9,999 4.70%
$10,000-$24,999 4.80%
$25,000-$99,999 4.90%
$100,000-$999,999 5.10%
$1,000,000 or more 0.50%

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Comment #83 by Anonymous posted on
Anonymous
sad.... but expected.

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Comment #84 by Anonymous posted on
Anonymous
Does eone have overdraft protection using a credit card?

regarding checks: after you finnish with the free ones couldn't you just order from a check printer, they are sooo much cheaper.

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Comment #85 by vivek (anonymous) posted on
vivek
You can always get more checks printed from elsewhere. I use walmart website http://www.walmartchecks.com/ to print my checks. For $5.96 + $2.50 shipping you can get 240 checks and 36 deposit tickets per box.

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Comment #86 by Anonymous posted on
Anonymous
I would like to transfer funds online from my Wells Fargo checking account to my Salem Five checking account without having to make a trip to Wells Fargo in person. I'm new with Salem five, can this be done?

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Comment #87 by Anonymous posted on
Anonymous
Yes, it can be done. Write a check from your Wells Fargo account and make it out to yourself, then mail it as a deposit to your Salem Five checking account. You could also wire the money but I'm sure Wells Fargo would charge you and that would likely be a trip to Wells Fargo which you're trying to avoid.

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Comment #88 by Alex G. (anonymous) posted on
Alex G.
Okay, this sounds good, but there is no ACH. My online savings account UFB Direct also has no ACH. If I were to open an eOne account, and add UFB Direct as a "Bill Pay" recipient, would Salem Five mail a check if I were to initiate a Bill Pay to them?

It seems I may need to use an intermediary such as my old Amtrust account, which has ACH, or Paypal to electronically transfer funds between two banks that don't have ACH.

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Comment #89 by Anonymous posted on
Anonymous
I have a WAMU account, they offer free outgoing wire transfers, I would like to transfer to Salem, does Salem Charge for incoming wire transfers?

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Comment #90 by Anonymous posted on
Anonymous
Most of the comments here are from May. How are people liking their SalemFive Direct accounts now that they have been open for ~6 months? I am interested in this account (seems too good to be true!) but definitely would like to know if it's been smooth sailing or not. I am a bit nervous about going all-internet (right now I have one local checking account, but would like to close it for this instead).

Also, bankdeals guy, since this account has held up pretty nicely with the Fed cuts, do you think it merits a re-posting?

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Comment #91 by Banking Guy (anonymous) posted on
Banking Guy
I think it may be time for another post on this account. As you mentioned, the rates are holding up better than the rates on most savings accounts. Thanks.

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Comment #92 by Anonymous posted on
Anonymous
in regards to wamu and free outgoing wire transfers... salem five accepts incoming wire transfers and will reimburse you up to $15 per statement cycle. wamu also has a free ach transfer system which also allows you to transfer money into the eone account that way.

and having had my account open since june, i have to say im pretty happy. i still keep my account at wamu just for the sake of having an account thats not internet only and i dont like depositing paper checks thru mail, but my eone account has been very good for me. customer service has been attentive and helpful the few times ive needed to call. and at this point in time i have no regrets. hopefully things remain this good so i can stay with them for the long term.

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Comment #93 by Anonymous posted on
Anonymous
sorry, correction on what i said about incoming wire transfers. salem five will reimburse customers $20 per statement cycle for incoming wire transfer fees, not just $15. i was probably thinking of the $15 in reimbursements that come with ATM usage :)

incoming wire transfer fees:
standard (mail confirmation) $10
phone or fax confirmation $15

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Comment #94 by Anonymous posted on
Anonymous
Thanks for the replies on the wire transfer fees, I don't like WAMU's ACH process where you have to schedule days in advance to transfer,I think it's either 3-4 days, plus it takes another 3 days to get there, total of 7 days buisness days, no other bank does that, so I would rather wire it over, I have never done a wire transfer, what info does WAMU require?
Thanks.

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Comment #95 by Anonymous posted on
Anonymous
Does anyone know if Salem Five Direct charges a fee for using their debit card overseas? Is there a foreign currency mark-up, and do the ATM refunds include withdrawals made out of the country? I'll try to call the CS team tomorrow, but thought someone here might have some experience with that.

Thanks!

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Comment #96 by Anonymous posted on
Anonymous
(Per the Consumer Fee Schedule):
If you make a purchase with your debit card in a currency other than U.S. dollars,
MasterCard will convert the amount to U.S. dollars. MasterCard will assess a fee for this
service, calculated by multiplying the transaction amount by the specified currency
conversion rate listed. The fee is included in the transaction amount on your statement.
Currency Conversion Assessment Fee 0.20%
Hope that helps. Not sure about the ATM refunds for out of the country use but I'd be surprised if they didn't reimburse.

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Comment #97 by Anonymous posted on
Anonymous
Thanks, it does help. The CS guy did not know the answer (which was a bit strange... seems like a fairly basic question).

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Comment #98 by Anonymous posted on
Anonymous
If you're a heavy Quicken user, stay away from SalemFive. I opened an eOne account to replace my NetBank online checking after NetBank was acquired by ING direct. (I still wanted to be able to use paper checks).

However, SalemFive does not really support Quicken. You can't do a One Step Update from Quicken, you can't enter bill payments from Quicken (unless you pay $5 a month for Intuit's Quicken Bill Pay service), you can't do online transfers from Quicken; in fact, if you click the "Update Now" button in Quicken for the SalemFive account, Quicken just opens a web browser and puts you in SalemFive's web interface.

Major thumbs-down from me. I may keep the eOne account just for paper checks I need to write, but I'm back to looking for my primary checking account.

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Comment #99 by Anonymous posted on
Anonymous
As another NetBank customer looking for a new "home" I was looking at Salem5. Does anyone know if they provide free deposit envelopes like NetBank did? How easy is it to get my checks into my S5 acct? ATM deposits?
Thanks, I'm deciding between this and Chuckie SwabtheDecks, since ING doesn 't support real paper checks.

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Comment #100 by Anonymous posted on
Anonymous
Yeah, they do provide free deposit envelopes. They're pretty quick with processing the deposits I mail in. They do accept ATM deposits at Salem Five ATMs and at ATMs part of the NYCE Deposit Taking Program, but there aren't any in my area so I've only been able to go by mail. Been with them since June - so far so good. Hope this helps.

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Comment #101 by Anonymous posted on
Anonymous
Since I asked a couple of the questions above, I thought I would share my experience opening a Salem Five Account.

I started the process in early November, so it took a good month to get everything together. Do the online application with a computer that has a printer so you can print out the application in the final step. I mailed it in, and had a hard pull from Equifax a few days later. I got an email that they needed me to call to verify my identity (my credit file had a fraud alert from a few months back), but when I talked to the woman and explained the situation, she asked that I fax over my driver's license, and I got an email saying my application had been approved a few hours later.

They mailed all of my materials to my home address rather than my mailing address (frustrating b/c I am a college student living about 2000 miles from home), and everything you need comes in several different mailings. For example, they send you your username for online banking in a separate envelope than your password, etc. However, after my dad forwarded me everything, I was able to log onto my account today; I had already earned my first month's interest.

As mentioned before, they do provide postage-paid envelopes for deposits. They also send you a free debit card (you get to choose the PIN during the sign-up process). You can change your online username only once, so choose wisely!

Though it was a long process, I am quite pleased so far. The customer service has been pretty good - they replied to one question I had over their on-site email in less than 2 hours.

I just hope the interest holds up in the long run!

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Comment #102 by Salem Five 10 year customer (anonymous) posted on
Salem Five 10 year customer
Hi I have been a customer of Salem Five since 1997 because I moved overseas and had to do my banking on-line. Their system has been great for my purposes and I have only been to an actual branch four times since I opened the account to make deposits in a hurry. I have had absolutely no problems with Salem Five. What I love about Salem Five is that I can always reach a real person to talk to in order to resolve any issues without waiting on hold for a long time. The deposits by mail are very efficient. I did a deposit by ATM with some checks that weren't properly endorsed by mistake and they didn't charge me any fees for the overdraft of the ATM machine over a period of three days. I signed up for the eOne account today and will update the blog with the progress.

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Comment #103 by Rollin (anonymous) posted on
Rollin
I'm thinking about opening an eOne account but am wondering a few things:

1. Is the daily ATM cash wihdrawl really only $300 max.? (My current bank is $500)

2. Anyone with a bankruptcy on record get denied an eOne account when they do a credit pull? My lawyer said that shouldn't be an issue for most banks.

3. Is the interest credit to your account each month or yearly?

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Comment #104 by Anonymous posted on
Anonymous
Rollin-

I only know the answer to your third question. The interested is credited monthly. They compound it at the end of the month based on the average balance.

Some people above comment about having difficulty opening the accound because of things like their driver's license not matching their current address. I would call customer service if I were you, and ask about the bankruptcy thing.

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Comment #105 by Anonymous posted on
Anonymous
When I received my debit card, the daily ATM cash withdrawal limit was listed as being $500.

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Comment #106 by Anonymous posted on
Anonymous
Rates dropped today:

0-9,999: 4.10%
10,000-24,999: 4.20%
25,000-99,999: 4.30%
100,000-999,999: 4.60%
>1,000,000: 0.50%

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Comment #107 by Anonymous posted on
Anonymous
SalemFive does not deserve my (or your) business until they make drastic changes to their sign-up process and customer service. My story (background): I had Netbank for at least 10 years, then they went out of business and IngDirect took over my account. Because I do lots of intl travel, I needed low ATM fees and internet access

Anyway, I researched checking accounts for days, read the reviews and ultimately chose Salem Five e-banking for their rates and fees. Applying was a nightmare. I applied online, then received an email asking for a copy of my drivers license and SSN card. I sent .pdf copies of mine and my joint account holder. We both have excellent credit.

After this, we received an email stating that we were APPROVED Welcome! Then in big Red, bold letters on the bottom it stated I had 10 days to send a signed hardcopy and my initial deposit.

I complied even though it was xmas holidays and I was traveling too. This process started early December 2007, I just received notice that they are returning my deposit and withdrawing my application since I failed to provide the needed information. Their customer service during the process has been terrible and insulting regarding the tone of their emails.

Salem Five is not able to deliver and they dont deserve my (or your) business. I rate them as one star they did nothing but waste my time. bob

If you are looking for a new internet bank, this is not a good choice!

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Comment #108 by Anonymous posted on
Anonymous
SalemFive does not deserve my (or your) business until they make drastic changes to their sign-up process and customer service. My story (background): I had Netbank for at least 10 years, then they went out of business and IngDirect took over my account. Because I do lots of intl travel, I needed low ATM fees and internet access

Anyway, I researched checking accounts for days, read the reviews and ultimately chose Salem Five e-banking for their rates and fees. Applying was a nightmare. I applied online, then received an email asking for a copy of my drivers license and SSN card. I sent .pdf copies of mine and my joint account holder. We both have excellent credit.

After this, we received an email stating that we were APPROVED Welcome! Then in big Red, bold letters on the bottom it stated I had 10 days to send a signed hardcopy and my initial deposit.

I complied even though it was xmas holidays and I was traveling too. This process started early December 2007, I just received notice that they are returning my deposit and withdrawing my application since I failed to provide the needed information. Their customer service during the process has been terrible and insulting regarding the tone of their emails.

Salem Five is not able to deliver and they dont deserve my (or your) business. I rate them as one star they did nothing but waste my time. bob

If you are looking for a new internet bank, this is not a good choice!

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Comment #109 by Anonymous posted on
Anonymous
Rates dropped again today:

0-9,999: 4.10% to 3.65%
10,000-24,999: 4.20% to 3.75%
25,000-99,999: 4.30% to 3.85%
100,000-999,999: 4.60% to 4.10%
>1,000,000: 0.50% - unchanged

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Comment #110 by Anonymous posted on
Anonymous
Got an email from them stating that my application was rejected, which they explained was based on the credit report they got from Equifax. Even if my credit was ruined (which it's nowhere near), why would they refuse to keep my money based on my credit-worthiness??? I'm not trying to get a loan, a credit card or rent a place from them...

I'm fairly secure financially and this is the first time in my life an application for a deposit account was turned down because of a credit report. Ridiculous and not worth the trouble of getting a hard pull on your credit history - stay away.

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Comment #111 by Anonymous posted on
Anonymous
Lowered again today. New rates:

0-9,999: 3.65% to 3.50%
10,000-24,999: 3.75% to 3.65%
25,000-99,999: 3.85% to 3.75%
100,000-999,999: 4.10% to 4.00%
>1,000,000: 0.50%

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Comment #112 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. Sorry to see another rate cut. At least it's hold up better than Charles Schwab's checking. That rate recently fell to 3.01% APY.

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Comment #113 by Anonymous posted on
Anonymous
Hello,
I am considering the Salem eOne account for my main checking account. I read through all the comments and saw that some one asked about a line of credit or some other method to avoid the overdraft charges. However I did not see an answer to their question and could not find any info regarding this on SalemFive's eOne web site. Does anyone know if they offer a way to avoid overdraft charges, ie line of credit or link to savings?

I read that they do not offer ACH, would this be related to automatically using a line of credit if you wrote a check for more than was in the account?

D in MN

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Comment #114 by Anonymous posted on
Anonymous
One more question for people that have this account. I went to Salem Five's online account page and it had a demo that showed how you could create a banking report based on categories you define on their web page. This seems like a really nice feature if you want to avoid MS money or Quicken. The only other bank I could find which offers this is Wells Fargo. So my question is this. Does the eOne account allow you to create a banking report like their Online checking account?

D in MN

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Comment #115 by Banking Guy (anonymous) posted on
Banking Guy
About lacking ACH, that means you can't initiate electronic transfers from your eOne account to and from your accounts at other banks. It doesn't relate to overdraft protection.

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Comment #116 by Anonymous posted on
Anonymous
How are people using bill pay to transfer money from one checking account to another?

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Comment #117 by Anonymous posted on
Anonymous
I called Salem 5 and got some answers. There is no line of credit available with this checking account and they do not allow it to be connected to a savings account so that money can be pulled automatically. A real bummer for me :(
D in MN

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Comment #118 by Anonymous posted on
Anonymous
I also learned that they do support purchase categorization with the eOne. Meaning downloading to quicken or MS money may not be necessary for those of us who just want a simple way to keep track of monthly spending.
D in MN

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Comment #119 by Anonymous posted on
Anonymous
Thanks for sharing the info D in MN.

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Comment #120 by Anonymous posted on
Anonymous
Another fed rate cut... another lowering of rates. New rates:

0-9,999: 3.50% to 3.10%
10,000-24,999: 3.65% to 3.20%
25,000-99,999: 3.75% to 3.30%
100,000-999,999: 4.00% to 3.60%
>1,000,000: 0.50%

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Comment #121 by Anonymous posted on
Anonymous
Salem Five Direct rates are down 10 basis points (for all tiers).

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Comment #122 by Anonymous posted on
Anonymous
Salem Five's rating on Bankrate.com upgraded from 3 stars (performing) to 4 stars (sound).

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Comment #123 by David (anonymous) posted on
David
I applied for this account. Got an email requesting a copy of my driver's license and Social Security card, which I provided. Got another email requesting a utility bill - provided that too. Then they said my application was rejected because they were "unable to confirm" the information I provided.

I called their customer service and the agent wouldn't say anything other than "unable to confirm" but wouldn't tell me what exactly they couldn't confirm or what source they were trying to confirm it against. I also asked if I could provide any further backup documentation to validate my identity and the answer was no.

This has to violate some kind of fair credit law - does anyone know what kind of rights we have to appeal rejections or know the bank's basis for making decisions on new account applications?

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Comment #124 by Banking Guy (anonymous) posted on
Banking Guy
You may want to check your ChexSystem report. Since Salem is not giving you much info, it could be an issue in ChexSystem. According to this Bankrate article you should be able to get a free look at the report if a bank has turned you down for an account.

You may also want to review your credit report. Many have reported Salem doing a hard credit pull via Equifax.

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Comment #125 by David (anonymous) posted on
David
Thanks for the suggestion, Banking Guy. I got a copy of my ChexSystems report and it was completely clean. I'm thinking of filing a complaint with the Massachusetts Dept. of Banking.

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Comment #126 by Anonymous posted on
Anonymous
Since Salem Five checking online signed up system is obviously very troublesome compared to easy ING Checking setup and ACH transfers, the question is whether the only plus Salem has (paper checks and deposits through ATM) is worth the trouble actually. Otherwise, the APR % is never been a serious benefit in order to distinguish online checkings offered when one doesn't keep a huge checking balance?

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Comment #127 by Alex G. (anonymous) posted on
Alex G.
Interest rates have fallen a couple times. Rates are now 2.0% to 2.5%. It may be time to get a different checking account.

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Comment #128 by BDan (anonymous) posted on
BDan
Rates have fallen again: now 1.5% - 1.65%. I'm not sure that there's anything better out there right now, though. Hopefully they'll go back up when the economy recovers, but that could take a few years.

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