Over the past year, savers have been reaping the benefits of the Feds interest rate hikes as APYs on savings accounts have blown past national averages, with some accounts reaching upwards of 4% and even 5%.
One of the highest APYS available right now: Salem Five Directs eOne Savings Account.
Salem Five Directs high-yield savings account offers 5.01%
Salem Five Direct is a subsidiary of Salem Five Bank, based in Salem, Massachusetts, with branches across the Boston area. It began in New England in 1855 as a small savings bank and has grown to provide lending, retail and internet banking, personal and commercial insurance, and wealth and trust management services.
Salem Five Directs high-yield savings account currently boasts one of the highest APYs on the market.
Key figures
Minimum opening deposit: $10
Monthly fee: $0
APY: 5.01%
For savers who want to supercharge their savings with the help of a robust APY and no monthly fees or minimum balance requirements, this high-yield savings account could be the right savings vehicle.
To be eligible for an eOne Savings Account, youll need to apply online. This account is not available to consumers who have an existing checking or savings account with Salem Five Bank at the time of the application, with the exception of customers who have an existing eOne Checking Account.
How a high-yield savings account can help you boost your savings
The key difference between a traditional savings account and a high-yield savings account is that a high-yield savings account usually offers an APY well above the national average.
The most recent rates from the Federal Deposit Insurance Corporation (FDIC) puts the national savings APY average at 0.40%, while most high-yield savings accounts offer 1.00% APY or higher.
Say you open a traditional savings account with a 0.40% APY. If you were to make an initial deposit of $1,000 and a monthly contribution of $100, your savings balance would be $2,206.40 after one year.
If you were to opt for a high-yield savings account with a 5.01% APY and make that same initial deposit and monthly contribution, you would have $2,281.85. Assuming that both of these accounts compound daily, youd have an extra $75.45 after one year by going with a high-yield savings account.
The takeaway
Sometimes, boosting your savings could be as simple as rethinking where youre keeping your money. If youre looking for a low-lift way to make your money work for you, it might be time to consider a new savings accountwith a higher APY.
