Salem Five Direct Review 2022: Offering a Competitive Savings Rate in Exchange for a High Minimum Balance


Salem Five Direct is a subsidiary of Salem Five Bank, based in Salem, Massachusetts, with branches in 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 business insurance, and management services. of patrimony and trust. Salem Five is a jointly owned bank, which means it is not publicly owned and has no shareholders.

All rates and fees are in effect as of November 15 and are subject to change.

Salem Five Direct Deals

Salem Five Direct offers both checking and savings options, as well as a bundle to give customers the best of what both their accounts have to offer. They also have certificates of deposit (CDs) who offer competitive pricing, with some of their longer-term CDs offering well over 3% APY.

Chequing accounts and savings accounts

eOne Verification

  • APY: 0.01% on daily balances from $0.01 to $1,000,000
  • Minimum opening deposit: $10
  • The minimum balance: $0
  • Costs: $0
  • ATM refund: $15 per statement cycle

High Yield Savings Account

eOne Savings

  • APY: 3.50% on daily balances from $0.01 to $1,000,000
  • Minimum opening deposit: $10
  • The minimum balance: $0
  • Costs: $0

Certificates of deposit

High Yield Certificates of Deposit

  • APY:
  • Minimum balance to earn APY: $10,000
  • Minimum opening deposit: $10,000
  • Maximum deposit: $500,000
  • Early withdrawal penalty: If you withdraw principal before the maturity date, a penalty equal to 4% of the principal balance withdrawn will be charged to your account. If the penalty exceeds the amount of interest earned that has not already been paid to you, a portion of the penalty may be deducted from your principal balance.
  • Costs: $0

Other services offered by Salem Five Direct

As a subsidiary of Salem Five Bank, the parent company of Salem Five Direct offers a wider range of account types, terms and services.

  • Various CD options: From six months to 60 months, Salem Five offers CDs in a number of terms as well as retirement CDs.
  • Money market accounts: Salem Five also offers a few different money market options that can all be opened with just $10.
  • Mortgages: Salem Five Bank offers mortgages, refinances, construction and renovation loans, reverse mortgagesand more.
  • Personal loans: For consumers looking to finance some of life’s most expensive stages, Salem Five offers auto loans, student loans, home equity lines of creditpersonal credit card and more.
  • Insurance: Owners, cartenants, motorcycle, leisure, umbrellaand life insurance are all offered by Salem Five.
  • Investment and Wealth Management Services: Salem Five investment products are offered by LPL Financial and include one-on-one services with a financial advisor, who can guide you through estate planning, retirement planning, education planning, etc., as well than automated investing with a robot. advise.

The Salem Five Direct Platform and Customer Support

Salem Five Direct customers can get in touch with a customer service representative by completing an online help request, online automated chat, or by phone 24/7. Salem Five Direct also has a mobile app available on the Apple app store and Google Play which has more than 4 stars. Customers can use the app to deposit checks, transfer funds, make payments, send or receive money, and more.

Advantages and disadvantages of Salem Five Direct

Salem Five Direct is a leaner version of its parent company, but still offers traditional banking services and competitive savings options. Here is an overview of some of the main pros and cons:

Pros: Salem Five Direct offers a competitive APY on its savings account. At 3.50%, Salem Five’s APY savings account is more than 16 times the national average.

Pros: Salem Five rewards consumers who want to keep all their banking in one place. For consumers who prefer to keep all their accounts in-house, Salem Five offers a pooled checking and savings account option for additional value.

Disadvantage: CDs have high minimum balances. The minimum balance requirement for Salem Five CDs is $10,000, which might be overkill for new savers.

Disadvantage: Depending on your purpose, Salem Five may not offer the correct CD term. While its parent company offers CD terms ranging from six months to 60 months, Salem Five Direct only offers three CD terms, ranging from one to two years, which may not be suitable for savers with longer-term goals. term.

Frequently Asked Questions

Is Salem Five Direct FDIC insured?

Salem Five is a member of the FDIC (Federal Deposit Insurance Corporation). The first $250,000 per depositor is FDIC insured and has the full faith and credit of the United States government.

Does Salem Five Direct use Zelle?

You can send and receive money through a mobile app if you have a Salem Five account.

Does Salem Five Direct have ATMs?

Salem Five customers have access to a network of free ATMs at 55,000 Allpoint ATMs worldwide at stores like Target, CVS, Walgreens and more.

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