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Holiday Wish: Higher Savings Rates

Just three banks pay 1% or more on savings.Maybe our Christmas wish should be some upward movement for savings account rates.

Other than Salem Five Direct, which boosted rates to 1.25% APY, savings rates have been stalled for months, with only a couple of banks paying at least 1.00% APY.

Earlier this month, Salem Five Direct raised the rate on its eOne Savings account from 1.00% APY to 1.25% APY, but the offer is only valid for new account holders.

That means if you have an existing savings account with Salem Five Direct or a savings or checking account with its parent, Salem Five Cents Saving Bank, you’re out of luck. You may be stuck with a rate as low as 0.75% APY.

Opening an eOne Savings account requires a $100 minimum deposit. There are no minimum balance requirements to earn interest on the fee-free account. The rate is good for balances up to $500,000.

Salem Five Direct (www.salemfivedirect.com) is the online operation of Salem Five, based in Salem, Mass. It has about two dozen branches in the Salem area.

There are two other banks that pay at least 1.00% APY to savers nationwide.

CIT Bank (www.bankoncit.com) has a rate of 1.05% APY on balances of $25,000 or more. While you can open an account with a $100 deposit, you’ll only earn 0.90% APY until your balance reaches at least $25,000. The account carries no fees.

CIT Bank is a division of New York-based CIT Group. The company provides lending, leasing and advisory services to small- and medium-size businesses.

Barclays (www.banking.barclaysus.com) pays 1.00% APY with its Online Savings account. The account has no minimum deposit requirement and no minimum amount is needed to earn interest. The account also has no fees.

Barclays is part of Barclays Bank PLC of London. U.S. operations are based in Wilmington, Del.

You can see how these rates stack up against the best savings and money market account rates in our extensive database of banks.

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Comments (4)
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4 Existing Comments

  1. P.S. said:
    on November 30th at 11:34 am

    TIAA Direct also has an APY of 1.25%

  2. Mike Cetera said:
    on December 4th at 08:51 am

    CIT Bank has just cut its savings rate to 1.00% APY on balances of $25,000 or more. Balances under $25,000 continue to earn 0.90% APY.

  3. Mike Cetera said:
    on December 7th at 11:41 am

    P.S. — Unfortunately TIAA Direct is not offering new accounts right now. As a result, we removed this bank from our list in July.

  4. richard face said:
    on January 12th at 05:19 pm

    hay mike i agree with you do me a favour go to deposit accounts and bring paoli over here with all her withy repotie this site can use it