After adding 35 bps to its APY, Salem Five Direct’s eOne Savings account (1.85% APY, up to $1 million) now has the highest APY of any nationally available savings account. Balances over $1 million will be transferred to a Statement Savings Account which currently earns 0.05% APY.
|1.85*%||-||$1m||Salem Five Direct||eOne Savings - New Money Only|
|OTHER TIERS: 0.05% → $1mm+|
Salem Five Direct added the eOne Savings to its product line eight years ago. Since then there have been a number of guaranteed rate promotions and 23 rate changes, which ranged from the initial 1.45% APY in January 2010, to a low of 0.75% APY in June 2012. In the past ten months, a total of 60 bps have been added to the APY.
DA readers who are familiar with the eOne Savings account (and its previous rate increases) will probably recognize the following statement from the promotion page.
The stated APY applies to new eOne accounts opened after 3/9/2018.
I cancelled my account with them due to the fact that they only offer these new rates to new customers. However you should know that they do match rates upon request (I've had rates matched 2 times) and when I called to close my account they also said they'd match the rate.
CSR confirmed that the new rate does not automatically apply to existing accounts, but current eOne Savings account holders can contact Salem Five Direct to request the new rate.
There is a sentence under “What You Will Need to Open Account” that can be confusing if you don’t read carefully:
eOne Savings eligibility is limited to consumers who apply online and who do not have an existing checking or savings account with Salem Five Bank at the time of the application, except that consumers with an existing eOne Checking Account are eligible for the eOne Savings Account.
The first time I read “existing checking or savings account with Salem Five Bank,” I thought Salem Five Direct, which made no sense, since “consumers with an existing eOne Checking Account are eligible.” If you currently have a Salem Five Bank (not Salem Five Direct) checking or savings account, you are not eligible to open an eOne Savings Account.
- eOne Savings accounts opened as of today will earn 1.85% APY on balances up to $1 million.
- Balances greater than $1 million earn 0.05% APY.
- New money is required for new accounts.
- The rate is NOT guaranteed.
- The minimum opening deposit is $100.
- This account must be opened online
- Existing Salem Five Bank (not Salem Five Direct) checking or savings account holders are not eligible, “except that consumers with an existing eOne Checking Account are eligible for the eOne Savings Account.”
More than two years ago, I posted about the fees, limits, and transfers initiated from Salem Five Direct. According to CSR, the following statements are correct and still in effect today (Note, the following transfers refer to those initiated from Salem Five Direct.)
- External transfers out of the account will incur a $3.00 charge; external transfers into the account are free.
- Outgoing external transfers are limited to $5k per transaction, $5k in aggregate per day, and $20k in aggregate per calendar month. If a transfer total exceeds $5k, more than one transfer will be required, as a result of the $5k per transaction limit.
- Once an external transfer from Salem Five Direct is initiated, it could take up to three days for the other institution to receive the funds.
Thanks to DA reader, solarado, for the Forum post about the eOne Savings account’s new APY.
Depositors Insurance Fund
Like all Massachusetts banks, Salem Five Direct’s deposits are insured by the FDIC and Depositors Insurance Fund (DIF).
The combination of FDIC and DIF insurance provides customers of Salem Five with full deposit insurance on all of your deposit accounts. The FDIC insures all deposits up to $250,000 per depositor and up to $250,000 per depositor for traditional and Roth IRAs. All deposit amounts above the FDIC limits are insured in full by the Depositors Insurance Fund.
As an online division of Salem Five Cent Savings Bank, Salem Five Direct offers its product line nationwide to U.S. Citizens and Resident Aliens with valid Social Security numbers.
As an internet bank, Salem Five Direct has no brick-and-mortar branches. Opening any type of account, including an eOne Savings account, must be done online.
As an online division of Salem Five Cents Savings Bank (Salem Five), Salem Five Direct operates under Salem Five’s FDIC Certificate (# 23296) and shares its financial history.
Salem Five Direct has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.07% (excellent) based on December 31, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $309.05 million, an excellent annual growth rate of 10%. Please refer to our financial overview of Salem Five Direct/Salem Five for more details.
Established in 1855, Salem Five Cents Savings Bank was known as the "Nickel Bank," because the first day’s deposits ranged from five cents and up. Headquartered in Salem, Massachusetts, the Bank has always considered itself innovative, and in 2015 added the Cardless Cash ATM, which allows customers to “open the bank’s mobile app on their smartphone, put in the amount they want withdrawn, then visit an ATM, scan a QR code, and pick up their money.”
In 2017, Salem Five Bancorp (parent company of Salem Five) completed the acquisition of Georgetown Bank (MA) and Georgetown Bancorp Inc. Following the acquisition, Salem Five has become Massachusetts’ ninth largest bank, with assets in excess of $4.6 billion and more than 137,000 customer accounts.
How the eOne Savings Compares
When compared to the 203 Savings Accounts tracked by DepositAccounts.com that are available nationwide, Salem Five Direct’s eOne Savings APY currently ranks first.
The above rates are accurate as of 3/12/2018.
To search for the best Savings Account, both nationwide and state specific, please refer to the Savings Account Rates Page of DepositAccounts.com.