This is the latest good news, bad news, and hopeful news about Salem Five Direct's eOne Savings account.
Good news – the rate has been increased to 1.35% APY and the balance cap has been raised to $1 million.
Bad news – the fine print on the promotion page reads,
The stated APY applies to new eOne accounts opened after 8/18/2017.
And in a Live Chat today, CSR stated,
The current rate offer of 1.35% APY is a promotion being offered to attract new customers, much like your initial rate was when you opened your account.
Please note the terms and conditions have changed for this new eOne Savings Account product. The maximum balance has been increased to $1,000,000.00. The rate is not guaranteed and could be subject to change at any time.
Hopeful news, maybe – in May, a few DA readers reported that their requests to have the new promotion rate applied to their existing accounts were approved. It’s always worth trying to get the higher rate, but you may lose the rate guarantee.
So here’s how things stand:
- eOne Savings accounts opened as of today will earn 1.35% APY on balances up to $1 million.
- Balances greater than $1 million earn 0.05% APY.
- New money is required.
- 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.”
|1.35*%||-||$1m||Salem Five Direct||eOne Savings - New Money Only|
|OTHER TIERS: 0.05% → $1mm+|
Please refer to my May 2017 blog post for more information on a variety of topics, including fees, limits, and transfers times associated with the eOne Savings 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 3.36% (excellent) based on March 31, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $231.39 million, an excellent annual growth rate of 8.11%. 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.”
Salem Five Bancorp (parent company of Salem Five) recently completed the acquisition of Georgetown Bank (MA) and Georgetown Bancorp Inc. Prior to the acquisition, Salem Five was Massachusetts’ ninth largest bank, with assets in excess of $4.19 billion.
How the eOne Savings Compares
When compared to the 204 Savings Accounts tracked by DepositAccounts.com that are available nation wide, Salem Five Direct’s eOne Savings APY currently ranks second.
|Interest Rate||Account Name||Credit Union/Bank|
|1.40% APY||Dollar Savings Account (no min/no max||DollarSavingsDirect|
|1.35% APY||eOne Savings New Money (no min/$1m max)||Salem Five Direct|
|1.30% APY||Money Market Savings ($250 min/no max)||ableBank|
The above rates are accurate as of 8/18/2017.