It’s been six months since Salem Five Direct last raised the rate on its eOne Savings account. At that time, the eOne Savings' 2.05% APY was a rate leader for nationally available savings account. As of today, the eOne Savings account earns 2.30% APY on all balances up to $1 million, but the 2.30% APY falls short of be a rate leader. FYI – balances over $1 million will be transferred to a Statement Savings Account which currently earns 0.05% APY.
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 25 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 20 months, a total of 120 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 1/8/2019.
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 this morning, 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 Forum post today,
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 2.30% 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.”
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 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.
Thanks to DA reader, solarado, for the Forum post about the eOne Savings’ new APY.
Depositors Insurance Fund
Like all 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.
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 2.68% (excellent) based on September 30, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $423.54 million, an excellent annual growth rate of 12.59%. 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.”
In 2017, Salem Five Bancorp (parent company of Salem Five) completed the acquisition of Georgetown Bank (MA) and Georgetown Bancorp Inc. Nearly two years after the acquisition, Salem Five has become Massachusetts’ seventh largest bank, with assets in excess of $4.9 billion and more than 166,000 customer accounts.
How the eOne Savings Compares
When compared to 216 Savings Accounts tracked by DepositAccounts.com that are available nationwide, Salem Five Direct’s eOne Savings APY ranks seventh, regardless of minimum balance requirements.
|Interest Rate||Account Name||Credit Union/Bank|
|2.53% APY||High Rate Savings ($50k min/$5m max)||North American Savings Bank|
|2.50% APY||High Yield Statement Savings ($5k min/$1m max||EBSB Direct|
|2.45% APY||Savings Builder ($25k min/no max)||CIT Bank|
|2.30% APY||eOne Savings New Money (no min/$1m max)||Salem Five Direct|
The above rates are accurate as of 1/9/2019.
To search for the best Savings Account, either nationwide or state specific, please refer to DepositAccounts.com’s Savings Account Rates page.