Posted by William Charles on July 4, 2018
Savings Accounts

Published on July 4th, 2018 | by William Charles

42

Salem Five Direct eOne Savings Account – 2.3% APY With No Requirements

Update: Rate increased to 2.3% APY on 1/19/19.

Originally posted 3/19/18. Reposting 7/4/18 since rate increased from 1.85% to 2.05% putting them at the top of the market, currently.

Offer at a glance

  • Interest Rate: 1.85% 2.05% APY
  • Minimum Balance: None, $100 minimum opening balance
  • Maximum Balance: $1,000,000
  • Availability: Nationwide
  • Hard/soft pull: Hard (all datapoints are quite old though). Recent datapoint says soft
  • ChexSystems: Yes
  • Credit card funding: None
  • Monthly fees: None
  • Insured: FDIC up to $250,000

The Offer

Direct link to offer

  • Salem Five Direct is offering 1.85% 2.05% APY on balances up to $1,000,000 with their eOne Savings account

 

Avoiding Fees

This account has no monthly fees to worry about

Our Verdict

This is currently the highest APY savings account with no requirements. Accounts with requirements earn up to 5%. An account like this is more suited to somebody who just wants to set and forget their money, or has so much in cash that they can’t manage enough rewards checking accounts (these all have caps anywhere from $1,000-$20,000+). It looks like this account does have a hard pull, or at least Salem Five used to do a hard pull. I’d like to see some newer data points on that if I’m honest. Either way it’s nice to see deposit accounts continue to offer higher and higher APYs and this might be an account worth considering for some people.

Readers point out in the comments that it looks like Salem Five Direct does not automatically raise rates for existing account holders and you have to call in to get the higher rates. I hate this practice as it removes the set and forget factor that is attractive on basic savings accounts.

Please feel free to share your own experiences with Salem Five Direct in the comments below.

 



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Ken
Ken

Can’t wait till we hit 2% with no HP, available nationwide, and no hoops to jump through. Fed is supposed to raise rates again shortly.

Bill M
Bill M

Right now banks can park pretty much as much money as they want at the Fed and earn 1.50%. This rate moves almost immediately when the Fed changes rates. Based on fed funds futures trading, there is a 94.4% probability of no rate hike at this week’s Fed meeting. The probabilities for the May 2nd meeting are 5.9% of a 25 basis point rate hike, 88.9% chance of no change and a 5.2% chance of a 25 basis point rate cut. You have to go out to the June 29 meeting to see a meaningful probability of a rate hike. In June, there is a 4.7% chance the fed funds rate will be 50 basis points higher and a 72.3% chance the rate will be 25 basis points higher while the probability of no change is 22%. Granted these probabilities are often wrong but they are derived from current futures trading where people are betting real money on the outcomes so I’m more apt to believe them over some talking head on CNBC who has probably never made a trade.

Max
Max

You have no clue what you are talking about

Greg R
Greg R

Yea Fed has stated they want to have 3-4 rate increases, they don’t want to do them at back to back meetings. They have 7 meetings left, I would be shocked if rates remained the same in March.

M
M

Perhaps you are misreading/misunderstanding the CME FedWatch Tool. There is over a 90% probability of their *being* a rate hike at this week’s Fed meeting.

Note that the current target rate is 125-150 basis points. Perhaps you were thinking that the current target is 150-175bp and so all of your interpretations of the probabilities were off?

Dima
Dima

This is not a great ‘set it and forget it’ account as they’ll not adjust rates for current account holders if they go up. Have to call them and ask to match the rate.

Rob
Rob

Dima, thanks for the heads up! I just called and had my interest rate on the Salem Five Savings Account raised from .90% to 1.85%! Didn’t even realize I could do that!

Scott
Scott

I also got my eOne savings account raised from 0.90% to 1.85% upon request.
Before reading these anecdotes, I had given up on getting the rate updated. It was years ago that I called them for a far more modest rate update, and they required $10k of additional deposits. The trouble was that all of my appreciable money was already in their account. But not in the following week…

Rob
Rob

I got this account in 2015 and currently my savings account interest rate is .90%. I also have Discover Bank account and their interest rate is 1.50%. The one thing to note about Salem Five is that they reimburse ATM fees up to $15 a month. That’s great on a free account IMHO.

David
David

Good to know!

Mikey
Mikey

Anyone tired yet of playing hopscotch with their bank balances? I would argue that if this rate entices you then opt instead for multiple small 11 mo no penalty CDs at CIT which will guarantee the same 1.85% for 11 months with full liquidity. I’m only making this point until we see 1.9% or higher elsewhere which makes all of this irrelevant anyway.

Brandon
Brandon

I don’t rate hop. I opened a Synchrony account and am more than happy with it. The rate goes up with rate raises automatically unlike some of these other banks. There is no cap. And they do offer a $5 ATM reimbursement. And they are a big bank.

Problem I see with a 1.85% CD for 11 months is one .25% rate increase brings Synchrony up to 1.8% without locking up my money. And that assumes that rates will not increase over the CD rate. I think CDs are great when the rates is expected to drop or hold for the year. Or when one knows they have extra cash, especially if they get CDs every 1-3 months, so cash is constantly becoming unfrozen if one needs it. But keep in mind, a .3% on $5000 yields only an extra $16 over a year. Not nearly as noticeable as the $113 increase for getting an extra 1.5% interest in a normal savings account on that same $5000. PS, Synchrony offers a 12 month for 1.95% which I feel is much better.

Mikey
Mikey

You misunderstood my point. The CIT no penalty CD doesn’t require locking anything up because it can be cancelled with the funds (including accrued interest) available within 48 hours. I agree that with chasing higher rates the gain may be negligible with small balances. But it’s indisputable that you would be maximizing your return by investing at a higher rate now and then simply transferring back if/when Synchrony’s rate improves.

Albrecht
Albrecht

Chatted with the rep and here’s what they said about hard hit: “Generally we will only do a “soft hit” for a credit check, though occasionally the system will choose to do a “hard hit”, so there is always the possibility.”

John Doe
John Doe

Can anyone tell me how long does it typically take to open an Account with them? I applied 5 days ago and received an email saying they’re reviewing my Application and would get back to me within 2 days. Now it’s been 5 days and no response from them yet. I even forgot that I had applied until I came across this webpage again.

Nick
Nick

Was going to open this and then saw that external transfers out of the account incur a $3 charge – can anyone verify? (source: https://www.depositaccounts.com/banks/salem-five-direct/offers/)

L
L
Jennifer
Jennifer

Salem Five and Salem Five Direct don’t have the same fee schedule since they’re not technically the same bank. Unfortunately, I’m having a hard time finding the Salem Five Direct fee schedule :-/

John
John

Denied for this account. The reason from Salem Five Direct was “information provided by ChexSystems report”. After requesting their report, I have 7 inquiries in the last two and half months and no negatives. Doesn’t appear that any hard reports were pulled. With all the negative reviews, it’s probably for the best. I will just stick with Dollar Savings Direct and 1.80% for now.

RABBOTT3
RABBOTT3

Dollar Savings Direct and 1.80%, that what I have and they didn’t have a hard pull on my credit report…so far, I am happy with it.

John
John

I’m happy too and Dollar Savings Direct has lightning fast same day incoming transfers.

Jack Sprat
Jack Sprat

The have low limits on withdrawals. Have to go through “hoops” to get more than $25,000 out in a rolling 30 day period.

Albrecht
Albrecht

Externally initiated ACH pulls have no limit.

Jack Sprat
Jack Sprat

limited withdrawal amounts

XB70
XB70

SalemFiveDirect (SFD) has weirdly restrictive ACH transfer limits when originated at SFD: Withdrawals (out) $5K per, $5K/day, and $20K within a rolling 30 days; deposits (in) $15K per, $25/day, and $25K within a rolling 30 days. But if originated elsewhere, no limits. No fees, they just rescind anything in excess of their limits.

Evilex
Evilex

I opened mine about 9 monyhs ago and ot was soft pull and no chex sensitive at least for me, before that i had opened at least 7 other bank accounts, not using it anymore since i have better deals.

Jenny
Jenny

Thanks for the info! it is by far the highest APR i have seen. Applied just now and it says waiting for their online team to review my application. fingers crossed.

Wes
Wes

Just FYI, Vanguard prime money market fund is pull 1.90% these days (2.06%-.16% fees), has no $ cap or requirements, and will continue to rise as the Fed hikes interest rates.

JohnP
JohnP

Note that Vanguard’s SEC yield is net of expenses, so what you see is what you get (no need to subtract expense ratio)

Steve
Steve

Is it VMMXX? It has minimum investment requirement of $3,000. Also, it’s not FDIC insured, correct?

Vince
Vince

Denied July 6th because of Chex.

Sjones
Sjones

Salem Five has limits in transfers $5,000/day out and $15,000/day in

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