Here’s something sweeter than the candy you’re collecting this Halloween.
Salem Five Direct bumped up the rate on its eOne Savings account by about 15 basis points. A basis point is one-hundredth of a percentage point.
At 1.5 percent APY, the savings account’s interest rate is the country’s highest yield. It’s about one-tenth of a percentage point higher than what’s offered by banks like UFB Direct, DollarSavingsDirect and Popular Direct, the nation’s other savings rate leaders.
See how it compares to other high-yield accounts for savers.
|Salem Five Direct||1.50%||$100|
To qualify for the savings account special, you’ll need to deposit at least $100. Scraping together that small amount of money could be worth it if you’re building an emergency fund or trying to hit a savings goals.
The fine print
With the eOne Savings account, there’s no monthly fee or minimum balance requirement. Interest compounds monthly, rather than daily (which would allow you to earn as much interest as possible).
The balance cap is $1 million. If you’ve saved more than that in your account, the bank may transfer it to a Statement Savings account (which only pays 0.05 percent APY). Anyone who’s saved that much money might as well open a CD with a higher interest rate.
The eOne Savings deal is not available to Salem Five Bank customers (the internet bank’s parent company) with a savings or checking account. You are eligible, however, if you have an existing eOne Checking or savings account.
Savings accounts don’t come with the same penalty you’ll incur for early withdrawals from a CD. But there are restrictions.
Under Regulation D, the Federal Reserve limits your savings and money market account withdrawals and outgoing transfers to six per month. If you exceed that amount at Salem Five Direct, you’ll pay a $10 fee.
Opening a Salem Five Direct savings account
You can open your eOne Savings account online at the bank’s website.
In addition to depositing at least $100, you’ll need to:
- Upload a copy of your state-issued ID or driver’s license
- Be a U.S. citizen or permanent resident with a green card
- Enter your Social Security number
You can make your first deposit electronically by transferring money from another bank or mailing in a check. You can wire funds into your account as well (but there’s a $15 incoming wire fee).
About Salem Five Direct
Salem Five Direct is an online division of Salem Five Cents Savings Bank, which is based in Salem, Massachusetts. Deposits are fully insured by the Federal Deposit Insurance Corp. and the Massachusetts Depositors Insurance Fund.
Salem Five Cents Savings Bank earned four out of five stars on Bankrate’s latest Safe & Sound Ratings, which measures the financial health of banks and credit unions throughout the United States.