Procrastination pays off if you’ve been contemplating opening an online savings account.
Salem Five Direct just boosted its promotional rate to 1.25% APY on its eOne Savings account, up from 1.00% last week.
Here’s the catch: You’re aren’t eligible for that rate if you already have an existing savings account with Salem Five Direct, or a savings or checking account with its parent, Salem Five Cents Saving Bank. The only exception is if you have an eOne checking account with Salem Five Direct.
You’ll need a $100 minimum deposit to open the account, and it can’t be funded from your eOne checking account.
You don’t need to keep a minimum amount in your account to earn interest, and the account carries no monthly fees. The rate is good on balances to $500,000.
If you already have an eOne Savings account and earn the standard rate of 0.75%, you’ll continue to earn that rate — it won’t be bumped up to the new promotional rate for new eOne savings account holders.
Unlike past promotions from this bank, this one isn’t guaranteed for any length of time. Since Salem Five (www.salemfivedirect.com) doesn’t post its standard rates online, we likely won’t know when the rate changes.
Still, this promotional rate is far better than the best savings rate currently available nationwide.
CIT Bank (www.bankoncit.com) pays 1.05% APY, but that’s for balances of $25,000 or more. CIT Bank is a division of New York-based CIT Group.
If you don’t have that much money to keep in savings, Barclays (www.banking.barclaysus.com) offers 1.00% APY with its Online Savings account. The account has no minimum balance requirement. The bank is part of Barclays Bank PLC of London. Its U.S. operations are headquartered in Wilmington, Del.
For an eOne Savings account at Salem Five Direct you must apply online. The bank has about two dozen branches around Salem, Mass.