People searching for a high-yielding savings account with a low minimum opening balance have a new option at the top.
Salem Five Direct recently increased the annual percentage yield (APY) on its eOne Savings account to 2.51 percent, giving it the highest APY on a nationally available savings account. The bank’s savings account offered 2.3 percent APY for most of 2019.
The top yield is available on balances from 1 cent to $1 million, and the account is insured through a combination of Federal Deposit Insurance Corp. (FDIC) and Depositors Insurance Fund (DIF) insurance.
Susquehanna Community Bank offers a higher APY (2.53 percent) on its savings account, but the minimum to earn that yield is a lofty $100,000 and the account must be opened at a branch and is not available online. Wealthfront recently increased the APY on its cash account to 2.51 percent APY as well, though its account is different from a savings account. A long list of banks offer savings accounts with APYs between 2 to 2.5 percent.
Account details: APY, insurance, fees and more
The eOne Savings account earns 2.51 percent APY on balances of 1 cent to $1 million. Salem Five Direct is a member of FDIC, so all deposits are fully insured through the FDIC and the DIF, according to Salem Five Direct’s website. Each depositor is insured to at least $250,000, like at any FDIC-insured bank. Deposits above FDIC limits are covered by DIF, according to Salem Five Direct.
It’s important to note that the FDIC and DIF have key differences. The FDIC is backed by the full faith and credit of the United States government and is an independent agency of the federal government. DIF is a private, industry-sponsored insurance company, so it’s not a federal or state agency, according to the DIF.
Those interested in putting more than $250,000 in a Salem Five Direct account should go to the DIF website to learn more about that type of deposit insurance.
The eOne Savings account can only be opened online. Consumers who have an existing checking or savings account with Salem Five Bank at the time of application aren’t eligible for the account. However, consumers with an eOne Checking account are eligible for this savings account.
Salem Five can transfer balances over $1 million to a Statement Savings account that currently offers 0.05 percent APY.
You need at least $100 to open the account, but it has no minimum balance requirement or monthly fees.
The account comes with a debit/ATM card. There is a $2 fee for ATM transactions at non-Salem Five ATMs, but the fee can be avoided by using an ATM in the Allpoint Network.
There is also a fee if you don’t elect to receive e-statements within 30 days of opening your account or if you discontinue the e-statement option.
Salem Five Direct customers can use the Salem Five Banking app.
About Salem Five Direct
Salem Five Direct is an online division of Salem Five, which is located in Salem, Massachusetts. Salem Five Direct is a deposit-accepting website of Salem Five Cents Savings Bank, according to the FDIC.
You can visit a Salem Five branch or store location at one of its 34 Massachusetts locations or its one New Hampshire location. But if you want to conduct a transaction at one of those branches it will cost eOne Savings account customers a $9.95 branch transaction fee.