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Salem Five Direct Slashes eOne Rates


Salem Five Direct
Update 7/16/09: The eOne Checking rates were cut today. Top rate for balances over $100K fell from 1.55% to 0.85% APY. Rate for balances under $50K fell from 1.40% to 0.75% APY. On the plus side, they have a new savings account called eOne Savings with a rate of 1.55% APY on all balances.

Update 10/16/08: The rates were cut today. The yield for balances under $50K is now 2.75% APY.

Salem Five Direct slashed rates today on its eOne checking account. The bottom tiered rates were reduced by 60 basis points to 4.10%, 4.20% and 4.30% APY. The top tier rate went down by 50 basis point to 4.60% APY. Below is how the rates have changed since Salem Five launched eOne.

Tiers Original 9/25/07 12/18/07 3/29/08 10/16/08
Under $10K: 5.00% 4.70% 4.10% 3.00% 2.75%
$10K-$25K: 5.10% 4.80% 4.20% 3.10% 2.75%
$25K-$50K: 5.10% 4.80% 4.20% 3.20% 2.75%
$50K-$100K: 5.20% 4.90% 4.30% 3.20% 3.05%
$100K-$1M: 5.30% 5.10% 4.60% 3.50% 3.35%

Note, there were a few rate changes between 12/18/07 and 3/29/08.

One good thing about Salem Five Direct is that they don't make frequent rate changes. So we can hope there won't be more cuts any time soon. If that happens, these rates may become more competitive as other banks continue to cut their rates.

Although these rate cuts make this account less appealing, it still has many nice features. The basic features include:
  • $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 - first 25 are free
  • Free online bill pay and debit card
  • Account requires eStatements and is not available at Salem Five branches
  • No ACH system. External transfers can be initiated from your other banks.

I have more details of this account in this May post. Many readers have provided more details of this account in the comments. Below is a summary of these:
  • Hard pull from Equifax (slightly dings your credit score)
  • Postage-paid envelopes for deposits are provided for free
  • Poor support for Quicken. $5/month is charged for Intuit's Quicken Bill Pay service.
  • Good customer service that can be reached quickly
  • ATM cash withdrawal limit listed at $500
  • Little things can cause Salem to reject application such as a driver's license with an old address

Salem Five is FDIC insured (FDIC Certificate # 23296). Note that the FDIC page only lists the URL and not 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.

Checking Account Alternatives

Please see my the best checking account post for other alternatives. I'm afraid it's a little out-of-date.

Thanks to the readers who commented on this rate change.

  Tags: Salem Five Direct, checking account

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Comment #1 by Anonymous posted on
Current rates:

0-9,999: 3.10%
10,000 - 24,999: 3.20%
25,000 - 99,999: 3.30%
100,000 - 999,999: 3.60%
1,000,000+: 0.50%

Comment #2 by Anonymous posted on
Salem Five Direct rates are down 10 basis points (for all tiers).

Comment #3 by cjdtech (anonymous) posted on
eOne is now at 2.75%

Comment #4 by Anonymous posted on
The under-$50K checking rate dropped to 2.25% today. I'll stick with this bank, though - they've treated me fairly and made online banking easy.

Comment #5 by Anonymous posted on
The under-$50K checking rate has dropped to 1.50%. Although it's been a great relationship, those 4%~5% reward checking banks are tempting me.

Comment #6 by Anonymous posted on
anyone notice that their page is now advertising a rate of 1.65% for balances over 100k? but when you look at the table below, it's still showing 1.55% and none of the other tiers have changed. did they increase the rate and forget to update? hopefully it's going up.

Comment #7 by Anonymous posted on
Massive rate cut (0.75%) and a new savings account to complement the checking account.