Finding a place to park your cash shouldn't feel like a part-time job. Honestly, it often does. You spend hours comparing rates, only to realize the "market leader" requires a $50,000 minimum or hits you with a monthly fee the second your balance dips. That is why Salem Five high yield savings, specifically their eOne Savings account, tends to pop up in so many conversations lately. It is a bit of an outlier in the banking world.
It isn’t a flashy fintech startup with a neon-colored app. Salem Five is actually a legacy institution, a Massachusetts-based bank that has been around since the mid-1800s. Their online division, Salem Five Direct, is where the aggressive rates live. As of January 2026, the eOne Savings account is offering a 3.61% APY.
Is that the absolute highest number on the market? No. You can find niche banks or credit unions pushing 5.00% right now if you're willing to jump through hoops like making 15 debit card swipes a month or maintaining a specific direct deposit. But Salem Five is playing a different game.
The Reality of the eOne Savings Rate
Most high-yield accounts have "trap doors." You see a great rate, but then you read the fine print and realize it only applies to the first $5,000. Or maybe it’s a teaser rate that vanishes after three months.
Salem Five high yield savings works differently. That 3.61% APY applies to daily balances from $0.01 all the way up to $1,000,000. That is a massive ceiling. For most of us, $1 million is effectively "unlimited" for a savings account. It makes the account particularly useful for people sitting on a house down payment or a large inheritance who don't want to manage multiple accounts just to keep their interest rate stable.
The bank uses the daily balance method to calculate interest. This is the standard, fair way to do it. It means every day your money sits there, it's earning its keep based on that day's balance.
What You Need to Know Before Opening
- Minimum to open: You only need $10.
- Monthly fees: There aren't any. Zero.
- New money rule: This is the big one. To get the high rate, the account must be opened with funds not already on deposit with Salem Five or Salem Five Direct.
- Existing customers: If you already have a "regular" Salem Five checking or savings account, you generally can't open an eOne account. It is designed specifically to attract new customers to the digital platform.
Why "Big Banks" Can't Compete
You've probably noticed your local Chase or Bank of America branch is still offering something insulting, like 0.01% APY. If you put $10,000 in there, you might earn enough for a cup of coffee after a year. At Salem Five, that same $10,000 earns you over $360.
Why the massive gap? It’s basically overhead.
Brick-and-mortar banks pay for buildings, tellers, electricity, and those little pens on chains. Salem Five Direct is a digital-first operation. They pass those savings on to you in the form of interest. It's a simple trade-off: you lose the ability to walk into a branch and complain to a manager, but you gain hundreds of dollars in passive income.
The "Six Withdrawal" Headache
We have to talk about the $10 fee.
Even though the Federal Reserve relaxed "Regulation D" (the old rule that limited savings withdrawals to six per month), many banks kept the limit in place. Salem Five is one of them. You get six "pre-authorized" transfers or withdrawals per statement cycle. If you go to seven? They’ll hit you with a $10 excess debit fee.
This is not an account for your "walking around" money. It is a digital vault. You put the money in, let it compound, and only pull it out for emergencies or planned big purchases. If you find yourself moving money back and forth to your checking account every Friday, this account will actually cost you money.
Safety and Insurance (The "DIF" Factor)
Most people know about FDIC insurance. It protects your deposits up to $250,000 if the bank fails. That's great, but what if you have $500,000?
Salem Five has a bit of a "secret weapon" called the Depositors Insurance Fund (DIF). Because they are a Massachusetts-chartered savings bank, they participate in this private, industry-sponsored insurance fund. It covers every penny above the FDIC limit.
Essentially, your entire balance is insured, no matter how high it goes. For people with high net worth who are nervous about bank stability—especially after the volatility we saw in the banking sector in 2023—this is a massive peace of mind.
Comparing Salem Five to the 2026 Market
Let's look at the landscape. Varo Bank is hitting 5.00% APY right now, which sounds better than 3.61%. But look closer. Varo only gives you that rate on the first $5,000, and you have to have $1,000 in direct deposits coming in.
Then you have someone like Openbank at 4.20% APY. Better rate, sure. But they require a $500 minimum deposit to open.
Salem Five sits in that "sweet spot." It's accessible with a $10 bill, pays a rate that is significantly higher than the national average (which is currently around 0.39% for standard accounts), and doesn't require you to switch your entire financial life over to them just to get the advertised yield.
Practical Steps to Maximize Your Return
If you're looking to jump in, don't just open the savings account in a vacuum. Honestly, the smartest move is to pair it with their eOne Checking.
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Why? Because the savings account doesn't come with an ATM card. If you need cash fast, you have to transfer it to an external bank, which can take 1-3 business days. If you have the eOne Checking account, the transfer is instant. Plus, the checking account reimburses up to $15 in ATM fees per month. It’s a loophole that gives you high-yield growth with "big bank" liquidity.
To get started, make sure you have your Social Security number and a valid ID ready. The online application usually takes about five minutes. Once you're in, set up an ACH link to your current bank and move your "lazy" cash over. Just remember the "new money" rule: if the money is already in a Salem Five account, it won't qualify for the eOne rate.
Stop letting your emergency fund lose value to inflation in a 0.01% account. Moving your cash to a Salem Five high yield savings account is a low-effort win that pays out every single month.