Salem Five Direct's eOne Savings 1.25% APY Guaranteed To 7/1/18

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Deal Summary: eOne Savings, 1.25% APY, $500k maximum, rate guaranteed through July 1, 2018, new eOne customers only. eCD Specials – 18-month (1.50% APY) and 36-month (2.00% APY), $10k min/$500k max.

Availability: Nationwide (internet bank)

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.25*%-$500kSalem Five DirecteOne Savings - New Money Only
OTHER TIERS: 0.05% $500k+
Accounts mentioned in this post. Rates as of May 26, 2017.
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.

eCD Specials

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.

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.00%$10k$500kSalem Five Direct36 Month eCD Special
1.50%$10k-Salem Five Direct18 Month eCD Special
Accounts mentioned in this post. Rates as of May 17, 2017.

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.

Availability

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.

Bank Overview

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 RateAccount NameCredit Union/Bank
1.30% APYDollar Savings AccountDollarSavingsDirect
1.25% APYeOne Savings New Money ($500k max)Salem Five Direct
1.21% APYIncredible SavingsIncredible 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 RateCD Length of TermBank/Credit Union
2.20% APY36-Month High Yield Special CD ($500 min)USALLIANCE Financial
2.02% APY30-Month Celebration Certificate ($1k min)Northwest Federal Credit Union
2.00% APY36-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 RateCD Length of TermBank/Credit Union
1.60% APY15-Months Share Certificate Special ($5k min)NASA Federal Credit Union
1.55% APY18-Month Popular Direct CD ($10k min)Popular Direct
1.50% APY18-Month eCD Special ($10k min)Salem Five Direct

The above rates are accurate as of 5/17/2017.

To search for the best Savings Account, both nationwide and state specific, please refer to the Savings Account rates section of DepositAccounts.com, or our Rates Map page.

To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table, or our Rates Map page.

Related Pages: Boston savings accounts, savings accounts, 1-year CD rates, 5-year CD rates, nationwide deals, Internet banks

Comments
Walter M.
Walter M.   |     |   Comment #1
So is the only way to withdraw money without paying a $3 to open the companion checking account? Seems like a bit of a hassle.
Mohammed Atta
Mohammed Atta   |     |   Comment #2
Yeah I had a checking account to go along with the savings. SFB customer service is TERRIBLE! So hard to get an actual person to help me on the phone.
oompaloompa
oompaloompa   |     |   Comment #3
Hmm, a 6-week guarantee until it drops to 0.001%.
Pass.
Alliant may not be at the top (1.05%), but at least they've consistently been quite good
Carpline
Carpline   |     |   Comment #4
It's not 6 weeks. It is guaranteed until July 1, 2018. A year and 6 weeks.
rhutnik
rhutnik   |     |   Comment #5
Are ACH pulls out of the account free? It isn't clear if pushes from the account out are the only thing that causes the $3.00 charge, maybe pulling from another bank is free.
Nothing
Nothing   |     |   Comment #6
If it leaves the account, does it matter how it was initiated?
Ken Tumin
Ken Tumin   |     |   Comment #7
Transfers initiated from another bank are not subject to this fee or to these limitations. I just did an online chat to confirm this with a CSR. I was pretty sure that was the case, but I just wanted to get confirmation. I've updated the post with this info.
ChasR
ChasR   |     |   Comment #8
I've always had interest on my Salem Five CDs, as well as maturing principal balances, paid into my Salem Five checking account. I've withdrawn the amounts by ACH initiated at Ally Bank. There's never been a limitation or fee.
xxx
xxx   |     |   Comment #9
13/17 of the reviews for this bank are 1 star.

That's enough to give me pause.
xxx
xxx   |     |   Comment #10
And, the EWP on a CD is 4% of principal, not your normal X days of interest. So, if you dump $15K into that 3 year CD @ 2%, your EWP is $600. That's the equivalent of 2 years of interest. No thank you.
Bogey
Bogey   |     |   Comment #12
EWPs mean nothing to me. I always keep a liquid cash account as a contingency plan in place for unexpected expenditures.

Not necessarily Salem Five, but people miss out on some good CDs by worrying about the EWP.
anonymous
anonymous   |     |   Comment #11
Disgruntled customers are always hugely more likely to post reviews than those who are pleased.
Results are always skewed negative, and even in that regard the critics typically have loans rather than deposits.
xxx
xxx   |     |   Comment #13
The EWP is a measure of the "stinky factor" for a financial institution regardless of whether or not you plan to cash in your chips early.

If you took the time to read the bad reviews, it was mostly due to the bait and switch on the savings accounts.

76.47% of the reviews are one star productions. And, Mr. Anonymous Statistician, results aren't always skewed negative.

You voted for Trump, didn't you?
Bogey
Bogey   |     |   Comment #14
An example of what "anonymous" was referring to?

I don't know about "anonymous", but I voted for Trump!
xxx
xxx   |     |   Comment #15
OK, here's an example. Schools First Credit Union has a similar number of reviews (16 instead of 17). Only 1 review is one star. So much for the statement "results are always skewed negative". Sounds like something Trump would say.“No politician in history, and I say this with great surety, has been treated worse or more unfairly.”
Sperry8
Sperry8   |     |   Comment #16
I just spoke to an agent via chat and she said that the bank would accept requests on a case by case basis via customers to extend the offer of 1.25% APY for new monies from current customers. I submitted the request and am waiting to hear back. Would be great if they allowed it.
rzelman
rzelman   |     |   Comment #17
My request for the higher rate was granted. Last time this occurred I needed to open a checking account although there were no fees or penalty for keeping just a small balance.
Sperry8
Sperry8   |     |   Comment #18
My request for the promotional 1.25% APY was approved today. They initially told me the promo was for new customers just like the promo I received years ago. Yet they said if I told them how much in new money I wanted to transfer they'd consider it. They approved it today. I recommend anyone who wants this rate as a current customer place a request. It is likely to be approved (according to their chat service personnel).
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In the past six years since Salem Five Direct began offering the eOne Savings, there have a number of guaranteed rate promotions and 20 rate changes (ranging from the initial 1.45% APY in January 2010, to a low of 0.75% APY in June 2012).

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Salem Five Direct has recently added a new 5-year CD special (what it calls eCD). It has a 2.00% APY with a minimum deposit of $10,000. Maximum deposit amount is $500,000, and only personal accounts are allowed. This new eCD rate is listed in the Salem Five Direct eCD page as of 7/12/2013. Thanks to the reader who first noted this new special in the DA forum.

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