Salem Five Direct is a subsidiary of Salem Five Bank, based in Salem, Mass., 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 is a mutually owned bank, meaning that it is not publicly held and has no stockholders.
All rates and fees are current as of Nov. 15, 2022, and are subject to change.
Salem Five Direct offerings
Salem Five Direct offers both checking and savings options, as well as a bundle to give customers the best of what both of their accounts have to offer. It also has certificates of deposit (CDs) that boast competitive rates, with some longer-term CDs offering well above 3% APYs.
Checking and savings accounts
eOne Checking
- APY: 0.01% on daily balances of $0.01–$1,000,000
- Minimum opening deposit: $10
- Minimum balance: $0
- Fees: $0
- ATM reimbursement: $15 per statement cycle
High-yield savings account
eOne Savings
- APY: 3.50% on daily balances of $0.01–$1,000,000
- Minimum opening deposit: $10
- Minimum balance: $0
- Fees: $0
Certificates of deposit
High-yield certificates of deposit
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APY:
- 12-month CD: 2.50%
- 18-month CD: 3.00%
- 24-month CD: 3.25%
- 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withdrawal penalty: If you withdraw principal before the maturity date, a penalty equal to 4% of the principal balance withdrawn will be charged to your account.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 earned interest that has not already been paid to you, some of the penalty may be deducted from your principal balance.
- Fees: $0
Other services Salem Five Direct offers
As a subsidiary of Salem Five Bank, Salem Five Direct’s parent company offers a wider range of account types, terms, and services.
- Diverse CD options: From six months to 60 months, Salem Five offers CDs across a number of term lengths 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, refinancing, construction and renovation loans, reverse mortgages, and more.
- Personal loans: For consumers looking to finance some of life’s more expensive milestones, Salem Five offers auto loans, student loans, home equity lines of credit, personal credit cards and more.
- Insurance: Homeowners, auto, renters, motorcycle, recreation, umbrella, and life insurance are all offered through Salem Five.
- Investment and wealth management services: Salem Five’s investment products are offered through LPL financial and include one-on-one services with a financial advisor, who can walk you through estate-planning, retirement planning, education planning, and more, as well as automated investing with a robo-advisor.
The Salem Five Direct platform and customer support
Salem Five Direct customers can get in touch with a customer service representative by filling out a help request online, automated chat online, or via telephone 24/7. Salem Five Direct also has a mobile app available on the Apple app store and Google Play that has over four stars. Customers can use the app to deposit checks, transfer funds, make payments, send or receive money, and more.
Pros and cons of Salem Five Direct
Salem Five Direct is a slimmed-down version of its parent company that still offers traditional banking services and competitive savings options. Here’s a rundown of some of the major pros and cons:
View this interactive chart on Fortune.com
Pro: Salem Five Direct offers a competitive APY on its savings account. At 3.50%, Salem Five’s savings account APY is over 16 times the national average.
Pro: Salem Five rewards consumers who want to keep all of their banking in one place. For consumers who prefer to keep all of their accounts in-house, Salem Five offers a bundled checking and savings account option for additional value.
Con: CDs have high minimum balances. The minimum balance requirement for Salem Five’s CDs is $10,000, which could be a stretch for new savers.
Con: Depending on your goal, Salem Five may not offer the right CD term. While its parent company offers CD terms ranging from six months to 60 months, Salem Five Direct offers only three CD terms, ranging from one to two years, which may not be the best fit for savers with longer-term goals.
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 insured by the FDIC and is backed by the full faith and credit of the United States government.
Does Salem Five Direct use Zelle?
You can send and receive money via mobile app if you have a Salem Five account.
Does Salem Five Direct have ATMs?
Salem Five customers have access to a network of fee-free ATMs at 55,000 Allpoint ATMs worldwide at stores like Target, CVS, Walgreens, and more.
