Dedicated to Deposits: Deals, Data, and Discussion

Update on Salem Five Direct's Checking Account

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Salem Five Direct
Salem Five Direct just made a rate change to their new eOne Checking account. It probably won't affect many, but for those who are affected, it may cost them thousands if they're not aware of it. Balances over $1 million now only earn 0.50% APY. Previously, balances over $1 million were earning 6.10% APY for the first 60 days and then 5.30% APY thereafter. So for someone who may have a $10 million balance, this change could be costing you $1380 per day.

Being a Massachusetts-chartered savings bank, Salem Five is covered by Deposits Insurance Fund (DIF) which insures all deposits above FDIC limits. DIF seems to have a pretty good record. According to the DIF website no depositor has ever lost a penny in a bank insured by both the FDIC and the DIF.

Perhaps the extra safety provided by DIF lured many multi-millionaires into this Salem Five Direct account, and this caused Salem Five to make this change. It's similar to what FNBO Direct did. In FNBO Direct's case, they capped new deposits to $1 million (see post). And FNBO Direct lacks DIF insurance .

For more info on the Salem Five Direct and its eOne checking account, please see my Salem Five Direct review post.

Thanks to Scott who mentioned this update.

  Tags: Salem Five Direct, checking account

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Comments
10 Comments.
Comment #1 by Anonymous posted on
Anonymous
Is the statement closing date the 5th for every one or is it varied based on individual's account opening date? Also, it seems that I get extra interest since my check was deducted from BoA on 6/5 and credited and earning interest at SF for 6/4 and 6/5.

1
Comment #2 by scott (anonymous) posted on
scott
I opened on 5/25 and interest credited on 6/5 also. Salem Five always pays interest from the day you deposit check. Great to put checks in on a Friday

1
Comment #3 by Anonymous posted on
Anonymous
Anyone know what is acceptable for a recurring direct deposit? ie. can it be an ACH from another bank?
Also I just reread the original post, Banking Guy mentioned that the bill payment system can be used as substitute for the lack of an ACH system. How? Anyone knows?

1
Comment #4 by scott (anonymous) posted on
scott
Just noticed another new condition for accounts opened after 6/7.
"The 6.10% APY introductory bonus rate is available to new Salem Five deposit customers only."
I already got my first interest and it had the 6.10%. Looks like others current customers like me must have moved to this account. They are strange with different accounts. They have a "Star Money Market" that is 4.50% for $50k+ then they have older account called "Premium High Yield" that top tier of $100k+ pays 1.50%. Seems they hope people don't pay attention and stay in crappy rate accounts

1
Comment #5 by Anonymous posted on
Anonymous
I just got my paper statement in the mail. It shows APY of 6.12% for 2 days. Anyone else got the same thing and not complaining here but what's going on?

1
Comment #6 by Anonymous posted on
Anonymous
How long after the account was opened and funded, do you receive your checks?

1
Comment #7 by Anonymous posted on
Anonymous
You receive the checks about 2 weeks after the account is opened and it's 120 checks.

1
Comment #8 by Anonymous posted on
Anonymous
Bankrate.com isn't listing Salem Five Direct in their interest checking comparisons today. Did I miss them or is Bankrate.com having issues with Salem Five Direct?

1
Comment #9 by Banking Guy (anonymous) posted on
Banking Guy
I have some info in this post about how Bankrate decides what to list.

1
Comment #10 by Hans (anonymous) posted on
Hans
Salem Five did an Equifax inquiry on me when I opened my eOne checking account.

1