Salem Five Direct has just increased the rate on its eOne Savings (1.25% APY, up to $500k), and guarantees that rate through July 1, 2018 for new eOne customers. The minimum opening deposit is $100.
|1.25*%||-||$500k||Salem Five Direct||eOne Savings - New Money Only|
|OTHER TIERS: 0.05% → $500k+|
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. Account must be opened with funds not currently on deposit with Salem Five Bank.
Salem Five Direct added the eOne Savings to its product line over seven years ago. Since that time, there have been a number of guaranteed rate promotions and 21 rate changes, which ranged from the initial 1.45% APY in January 2010, to a low of 0.75% APY in June 2012. Today’s 15 bps increase was the first rate change in 16 months.
I first shared information concerning fees, limits, and transfer times associated with the eOne Savings account more than two years ago. CSR confirmed in a Live Chat this morning that following statements are correct and still in effect today.
- 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.
Update 5/18/17: The above fee and limitations are for transfers initiated from Salem Five Direct. Transfers initiated from another bank are not subject to this fee or limitations.
Salem Five Direct has also raised the rates on two of its eCD Specials. The 18-month now earns 1.50% APY (25 bps increase), with the 36-month earning 2.00% APY (90 bps increase). The minimum opening deposit is $10k, with a balance cap of $500k.
|2.00%||$10k||$500k||Salem Five Direct||36 Month eCD Special|
|1.50%||$10k||-||Salem Five Direct||18 Month eCD Special|
As stated in the Special Term Deposit Account Disclosure, the Early Withdrawal Penalty reads as follows:
If you withdraw principal before the maturity date, a penalty equal to
4% of the principal balance withdrawn will be charged to your account.
Thanks to DA reader, ChasR, for his Forum post about Salem Five Direct's eCD Specials.
Depositors Insurance Fund
Like many 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 is able to offer 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 or eCD Special, with must be done online.
As an online division of Salem Five Cents Savings Bank (better known as Salem Five), Salem Five Direct shares both Salem Five’s FDIC Certificate (# 23296) and financial history.
Salem Five Direct has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.64% (excellent) as of December 31, 2016. In the past year, the Bank has increased its total non-brokered deposits by $285.28 million, an excellent annual growth rate of 10.17%. 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.”
Last week, Salem Five Bancorp (parent company of Salem Five) announced it had received approval to proceed with its acquisition of Georgetown Bank (MA) and Georgetown Bancorp Inc. The closing date is projected to be no later than May 31, 2017.
How the eOne Savings Compares
When compared to the 207 Savings Accounts tracked by DepositAccounts.com that are available nationally, Salem Five Direct’s eOne Savings APY currently ranks second. The rate guarantee through July 1, 2018, only adds to the account’s competitiveness.
|Interest Rate||Account Name||Credit Union/Bank|
|1.30% APY||Dollar Savings Account||DollarSavingsDirect|
|1.25% APY||eOne Savings New Money ($500k max)||Salem Five Direct|
|1.21% APY||Incredible Savings||Incredible Bank|
How the eCD Specials Compare
When compared to the 203 similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, Salem Five Direct’s 36-month eCD Special APY currently ranks third, regardless of minimum deposit requirements.
|Interest Rate||CD Length of Term||Bank/Credit Union|
|2.20% APY||36-Month High Yield Special CD ($500 min)||USALLIANCE Financial|
|2.02% APY||30-Month Celebration Certificate ($1k min)||Northwest Federal Credit Union|
|2.00% APY||36-Month eCD Special ($10k min)||Salem Five Direct|
When compared to the 152 similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, Salem Five Direct’s 18-month eCD Special APY currently ranks fourth, regardless of minimum deposit requirements.
|Interest Rate||CD Length of Term||Bank/Credit Union|
|1.60% APY||15-Months Share Certificate Special ($5k min)||NASA Federal Credit Union|
|1.55% APY||18-Month Popular Direct CD ($10k min)||Popular Direct|
|1.50% APY||18-Month eCD Special ($10k min)||Salem Five Direct|
The above rates are accurate as of 5/17/2017.