As of this morning, Salem Five Direct's eOne Savings account now earns 1.50% APY on balances up to $1 million.
|1.50*%||-||$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 nearly eight years ago. Since then there have been a number of guaranteed rate promotions and 22 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 40 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 10/25/2017.
In the past few months, a few DA readers reported that their requests to have the new promotion rate applied to their existing accounts were approved. In a Live Chat today, CSR noted that the new rate does not automatically apply to existing accounts, but current eOne Savings account holders can contact Salem Five Direct to discuss how they can take advantage of the new 1.50% APY. As I do not have an eOne Savings account, CSR could not discuss the particulars of raising the rate on my “non-existent” current account, but he indicated there is a good possibility of securing the higher rate.
- eOne Savings accounts opened as of today will earn 1.50% APY on balances up to $1 million.
- Salem Five reserves the right to transfer balances over $1 million to a Statement Savings Account which currently earns an APY of .05%.
- 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 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.
- 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.
Salem Five Direct also raised the rate on its 18-month eCD Special to 1.75% APY, a 25 bps increase. The 36-month eCD Special continues to earn 2.00% APY. The minimum opening deposit for either eCD Special is $10k, with a balance cap of $500k.
|2.00%||$10k||$500k||Salem Five Direct||36 Month eCD Special|
|1.75%||$10k||$500k||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.
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 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 or eCD Special, with 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 3.23% (excellent) based on June 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $440.01 million, an excellent annual growth rate of 15.18%. 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.”
Earlier this year, 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’ seventh largest bank, with assets in excess of $4.6 billion.
How the eOne Savings Compares
When compared to the 204 Savings Accounts tracked by DepositAccounts.com that are available nationwide, Salem Five Direct’s eOne Savings APY currently ranks first.
|Interest Rate||Account Name||Credit Union/Bank|
|1.50% APY||eOne Savings New Money (no min/$1m max)||Salem Five Direct|
|1.40% APY||Dollar Savings Account (no min/no max||DollarSavingsDirect|
|1.35% APY||Premier High Yield Savings (no min/$250k max)||CIT Bank|
The above rates are accurate as of 10/25/2017.