Salem Five Direct Ups eOne Savings APY

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Deal Summary: eOne Savings, 1.85% APY, $100 minimum opening deposit, $1 million maximum, new eOne Savings customers, with some exceptions.

Availability: Nationwide (internet bank)

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.85*%-$1mSalem Five DirecteOne Savings - New Money Only
OTHER TIERS: 0.05% $1mm+
Rates as of April 26, 2018.

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.

In the past, a few DA readers reported that their requests to have the new promotion rate applied to their existing accounts were approved. DA reader, Sperry8, recently stated,

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.

Summary

  • 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.

Availability

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.

Bank Overview

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.

Related Pages: savings accounts, nationwide deals, Internet banks

Comments
Scratchin' my head
Scratchin' my head   |     |   Comment #1
So it would take up to 5 months and $60 to transfer out the $100,000 over 20 individual transactions?
Sperry8
Sperry8   |     |   Comment #5
These levels don't apply when you initiate transfers from another bank, like Ally for example.
solarado
solarado   |     |   Comment #8
Agree with Sperry8. I was able to move out amounts far in excess of these limits when initiating the transfers from another bank, just recently.
Reader
Reader   |     |   Comment #2
Buried in the disclosures, and not so easy to find:

"Limitations: For security reasons, the Bank has established limits on the amount of funds that can be transferred via External Transfers. External Transfers from your account are limited to $5,000 per transaction; $5,000 in aggregate per day; and $20,000 in aggregate per calendar month. External Transfers to your Salem Five account are limited to $15,000 per transaction; $25,000 in aggregate per day; and $25,000 in aggregate per calendar month. In addition, external transfers outstanding are limited to $25,000 in aggregate per day and $45,000 in aggregate per calendar month. We reserve the right to change your External Transfer dollar limit at any time. If we decrease the dollar limit, we will notify you as required by law, but we may not notify you if we are restricting your transfer limits for security purposes or because of excessive overdrafts to your Salem Five account..."
deplorable 1
deplorable 1   |     |   Comment #6
@Reader: So are these limitations for transfers from S5D's site only or do they apply to transfers from 3rd party banks as well? It should be the former but the language isn't all that clear. Anyway nice to see another rate leader as it should cause others to raise their rate as well.
Reader
Reader   |     |   Comment #7
@deplorable 1: "External Transfers" as used in this Limitations section are defined as transfers to AND from an SFD account which are originated at SFD. I did not see a reference to transfers initiated at other banks. Please also refer to Sperry8's comment #5.

Also, I did NOT read all the disclosures provided by the bank and there are tons of it! I lost interest after reading the limitations on transfers. Anyone interested in opening an account should read all the disclosures.
reader
reader   |     |   Comment #3
I just called and funds are available via bank check or wire are options
Richard Sherman
Richard Sherman   |     |   Comment #4
Yeah, I ha d Salem Five. Huge hassle with that. You're better off opening a checking account, transferring from savings to checking, and writing a SF check to move the money elsewhere.
steve212
steve212   |     |   Comment #9
"External transfers out of the account will incur a $3.00 charge; external transfers into the account are free." I would like to confirm this statement but I cannot find it in writing on Salem's website. I found their online fee schedule but it doesn't seem to mention anything about a $3 ACH fee. I've looked through their online documents and it's either confusing or full of typos. For example, when I signed up they provided me with a document titled:"eOne Savings Account Disclosure" The very next line on that document says, "This disclosure describes the terms and features of the Star Checking Account offered by Salem Five Cents Savings Bank." Star Checking Account? Why does this doc mention a Star Checking account when setting up a savings account. Also the fee schedule list a fee for "Overdraft Deposit Sweet (OD Deposit Sweep), per item". Deposit Sweet ? is that a real thing or another typo? Also when I signed up for an account they failed to link to the document that talks about the 5K daily withdrawal limit (online-banking-agreement). Instead they linked me to the consumer-banking-services-agreement. This bank is starting to feel more like a mine field full of unpleasant surprises. I don't think I will transfer much money into it unless I can figure out a way to safely navigate around their fees and transfer restrictions. Also if you do sign up for an account, you apparently have 30 days to switch from paper to online statements to avoid the paper statement fee. I will reluctantly give them a chance with a small amount of money, but based on all the bad reviews, I have a feeling they will try to fee me somehow and then I will probably be back with my own 1 star review. Hope not.
RichReg
RichReg   |     |   Comment #10
The CSR mentioned that they have discontinued charging for external transfers, when I spoke with them yesterday.
111
111   |     |   Comment #12
Well, that eliminates 1 of the 2 problems they have with these, the other being the low limits.
steve212
steve212   |     |   Comment #15
Good to know. I just got into my new Salem account today. The "1.85% APY" is actually 1.845 APY with an APR of 1.83. The external account I used for initially funding the account during sign up did not get saved into my external accounts, so now I have to re-link the account again to use it for ACH. Not a huge deal, but I'll have to wait a few more days before I can try out their ACH system. The re-linking trial deposits will also use up another one of my 6 allowed debits on my external account because after they do the micro deposits they debit them back out. 3 debits ( 2 trials and 1 funding) total from my external account to set up this new Salem account. I'm not bashing Salem for this but it's just something to keep in mind if your bank only allows 6 debits per month.
john
john   |     |   Comment #11
Just to confirm, when you decide to move the money FROM Salem Five Direct to any other bank, you can only transfer $5,000 at a time?
rzelman
rzelman   |     |   Comment #13
I have never encountered any issues with their CSRs in maintaining the highest rates offered or in accessing my funds from an external account. Today is an exception likely due to the weather, no phone service and the chat line is backed up seemingly for hours.
anon
anon   |     |   Comment #14
what's their policy on POD beneficiaries - how many can one name, can charities be named, etc?
DCGuy
DCGuy   |     |   Comment #16
The account requires e-statements. If you opt to receive mailed paper statements, there is a monthly fee of $2.95.
DCGuy
DCGuy   |     |   Comment #17
I could not find the reference to the 3 external transfer fee for this account so maybe it is hidden and only mentioned when you actually apply for the account. On the Salem Five website, I did find mention of this in their fee schedule.

External Fund Transfer Debit No Charge

Maybe this only applies to accounts opened on their regular (non-direct) website?
DCGuy
DCGuy   |     |   Comment #18
Typo. I meant $3 fee in my previous post.
Confederacy Of Dunces
Confederacy Of Dunces   |     |   Comment #19
Of all the tricky, sneaky, dishonest banks, and it appears to be banks, not credit unions, that create new account types and other ways to make them appear to have high interest rate accounts, while not giving the high interest rate to existing customers, Salem Five Direct appears to be about the bottom of the barrel.

It doesn't make sense to deal with these banks. The extra interest is relatively minimal, unless it is a huge amount of money, and in that case the customer hopefully has better ways to spend her time than trying to keep a dishonest bank honest.
rzelman
rzelman   |     |   Comment #20
All one has to do with Salem Five is to call and request the higher rate. There is no need to open a new account. This unfortunately is not the case with EBSB which incidentally still trails Salem Five by 28 basis points.
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Availability: Nationwide (internet bank)

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