bank rates

Salem Five Cuts Savings Promo Rate

front of a nickelSalem Five Direct has slashed the promotional sign-up rate on its eOne Savings account by a full quarter of a percentage point, creating a near toss-up among savings account leaders.

The bank, which is the online division of Salem Five Cents Saving Bank, in Salem, Mass., cut its rate from 1.25% APY to 1.00% APY on balances to $500,000.

That cut means Salem Five Direct no longer offers the best nationally available savings account.

What’s more, there are now more than a half dozen money market accounts that pay better than the top savings account.

CSBdirect offers the best savings rate, 1.01% APY on account balances of at least $1,000. Balances below that amount earn 0.55% APY.

But even its MMA pays more — 1.05% APY on deposits of at least $10,000.

The bank is the online division of Citizens State Bank in Perry, Fla., which has four branches in the state (www.csbdirect.com). The account has a $100 minimum deposit; keep less than that in your account, and you’ll be charged a $2 monthly fee.

Of course, the Salem Five offer has always been a bit misleading. The promotional rate is available only to new savings account customers. The bank does not post its standard rates online.

It takes a $100 deposit to open an account, but there is no balance requirement to earn interest. The account has no fees (www.salemfivedirect.com).

Just one other bank offers a nationally available savings account that pays at least 1%.

Barclays (www.banking.barclaysus.com) pays 1.00% APY for its Online Savings account. There’s no minimum deposit requirement to open the account or earn interest. There are also no account fees. Barclays is part of Barclays Bank PLC of London, with U.S. headquarters in Wilmington, Del.

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  1. Mike Cetera said:
    on February 13th at 10:57 am

    One of our contributors shared an email sent out to Salem Five customers, annoucing that anyone who opened an account at 1.25% APY would continue earning that rate for the timebeing.