For the first time in about three years, Massachusetts-based Salem Five Direct has increased the rate on its eOne Savings account. The eOne Savings account now earns 1.01% APY on all balances up to $1 million (balances over $1 million will be transferred to a Statement Savings Account that earns 0.01% APY). The addition of 61 bps has put the eOne Savings account near the top of tomorrow’s Latest Liquid Bank Account Summary.
Salem Five Direct added the eOne Savings to its product line about 12 years ago. Since then, there have been a number of guaranteed rate promotions and 37 rate changes, which ranged from the initial 1.55% APY in July 2009, to a high of 2.51% APY in June 2019, to a low of 0.40% APY in June 2021.
DA readers who are familiar with the eOne Savings account (and its previous rate increases) may recognize the following statement from the promotion page.
The stated APY applies to new eOne accounts opened as of today's date.
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: Does the new 1.01% APY on the eOne Savings apply to existing accounts?
Salem Five Direct: Yes
DA: So I don’t have to call and ask for the new rate?
Salem Five Direct: Yes you do [have to call]. We need to have the call on a recorded line.
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 1.01% APY on balances up to $1 million.
- Balances greater than $1 million earn 0.01% 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.
As stated in the eOne Savings Account Disclosure,
This account is designed for customers who bank electronically through ATMs, mobile devices, telephone, and online. If at any time you conduct a transaction at one of the Bank’s branches, the Bank will assess your account a branch transaction fee [$2.00] for the applicable statement period. Additionally, the Bank will assess your account a monthly paper statement fee [$2.95] if you do not elect to receive eStatements within 30 days of account opening or if at any time you discontinue receiving eStatements.
You must register for online banking at salemfive.com. Once registered, you must enroll in eStatements whereby you agree to receive your monthly periodic statements electronically. Once you enroll, paper copies of your statements will not be mailed to you and you will not receive your original cancelled checks. Images of your paid checks, however, will be provided with your eStatements and are available to you within Salem Five Online Banking.
According to CSR, the fees and limits on ACH transfers initiated from Salem Five Direct are as follows:
- 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.
These are the same fees and small limits that existed seven years ago. I'm sorry to see that there haven't been improvements. If you decide to open an eOne Savings account, it would be wise to initiate ACH transfers from another financial institution. For those types of transfers, Salem Five Direct has no dollar limits and no Salem Five Direct fees would apply.
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 on a nationwide basis to all U.S. citizens and permanent 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, 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 2.78% (excellent) based on December 31, 2021 data. In the past year, the Bank has increased its total non-brokered deposits by $271.69 million, an excellent annual growth rate of 6.5%. 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.”
Between 2013-2018, Salem Five Bancorp (parent company of Salem Five) completed the acquisitions of three Massachusetts banks: Stoneham Savings Bank (2013), Georgetown Bank (2017), and Sage Bank (2018). Salem Five is currently the sixth largest bank in Massachusetts, with assets in excess of $5.8 billion and nearly 170,000 customer accounts.
How the eOne Savings Compares
When compared to nationally available Money Market Accounts and Savings Accounts tracked by DepositAccounts.com, that do not require large balances or direct deposit and do not have small balance caps, the Salem Five Direct eOne Savings rate currently ranks fourth.
The above information and rates are accurate as of 5/17/2022.