During the past year’s rising rate climate for liquid accounts, most of the increases we’ve seen have been modest – generally between 5 and 10 bps – but occurring fairly frequently. Salem Five Direct, on the other hand, has added 66 bps in three rate increases, including the 21 bps added over the weekend.
The eOne Savings account now earns 2.51% APY on all balances up to $1 million (balances over $1 million will be transferred to a Statement Savings Account which continues to earn 0.05% APY). The new 2.51% APY positions the eOne Savings account as the new rate leader (albeit by 1 bp) for nationally available savings accounts that do not require a large minimum balance.
Salem Five Direct added the eOne Savings to its product line almost nine years ago. Since then, there have been a number of guaranteed rate promotions and 26 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 21 months, a total of 91 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 5/31/2019.
In the past, some DA readers reported that their requests to have the new promotion rate applied to their existing accounts were approved. In a Live Chat, 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. DA reader, CDsForMe, stated in a January Forum post,
I can confirm that if you call they will upgrade the interest rate on your savings account. I just called in and it was no problem. She said they don't upgrade automatically but if you call they will be happy to upgrade whenever there is a change.
There is a sentence under “What You Will Need to Open Account” that continues to be confusing, unless you 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 2.51% APY on balances up to $1 million.
- Balances greater than $1 million earn 0.05% APY.
- New money is required for new accounts.
- There is no rate guarantee.
- 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.”
- At the time of the application, only one joint account holder and one beneficiary can be added. After the account is approved and opened, additional owners can be added over the phone.
More than two years ago, I posted about the fees, limits, and transfers initiated from Salem Five Direct. According to CSR, the following are still in effect.
- 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, Carpline, for his Forum post about the eOne Savings’ new APY.
Depositors Insurance Fund
Like all Massachusetts-chartered savings 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, Salem Five Direct offers its product line nationwide to all U.S. citizens and resident aliens with valid Social Security numbers.
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, Salem Five Direct operates under Salem Five’s FDIC Certificate and shares its financial history.
Salem Five Direct/Salem Five has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.08% (excellent) based on December 30, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $313.73 million, an excellent annual growth rate of 9.23%. Please refer to our financial overview of Salem Five Direct/Salem Five (FDIC Certificate # 23296) 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.”
Salem Five Bancorp (parent company of Salem Five) completed the acquisitions of two Massachusetts banks in the last two years: Georgetown Bank (2017) and Sage Bank (2018). Salem Five is currently the eighth largest bank in Massachusetts, with assets in excess of $5 billion and more than 151,000 customer accounts.
How the eOne Savings Compares
When compared to 209 Savings Accounts tracked by DepositAccounts.com that are available nationwide and do not require a large minimum balance, Salem Five Direct’s eOne Savings APY currently ranks first.
The above rates are accurate as of 6/3/2019.
To compare the top savings account rates, both nationwide and state specific, please refer to our Savings Account Rates Table page.