Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts
Overview / Commentary
71 Washington Street
Salem, MA 01970

Salem Five Direct is an online division of Salem Five Cents Savings Bank, an innovative bank located in Salem, Massachusetts with over 150 years of banking experience. On the Salem Five Direct website you will find unique bank product offerings developed exclusively for clients seeking to conduct business on the internet. These offers will not be available through the Salem Five branch network and will change from time to time. The Salem Five Direct mission is to offer unprecedented value to our direct banking customers through exclusive product features at highly competitive prices.

Related Posts

New 5-Year CD Special at Salem Five Direct - 7/12/2013

Salem Five Direct has recently added a new 5-year CD special (what it calls eCD). It has a 2.00% APY with a minimum deposit of $10,000. Maximum deposit amount is $500,000, and only personal accounts a ...

New CD Specials with Top Rates at Salem Five Direct - 5/22/2013

Salem Five Direct has increased its rates and added new terms on its special eCDs. The new rates are high compared to what other banks are offering. Just be aware that Salem Five has a severe early wi ...

Salem Five Direct Charges $3 To Process Many ACH Debits & Pulled Hard Credit Report

I find it incredibly hard to believe that people are signing up for Salem Five Direct's eOne Savings Account. Salem Five charges $3 for each ACH debit that you initiate through Salem Five Direct. A withdrawal from Salem Five Direct initiated through your external account is free.

This information is available in Salem Five Direct's Fee Schedule. You may have to do a site Search for it; it's somewhat buried.

This seems like a depositer-unfriendly fee which all the other online banks I've dealt with do not have. I assumed all banks ate the ACH fee in order to attract depositers. Even if they didn't, I wouldn't have expected it to rise above $1.00.

In addition, Salem Five Direct will assess a $10.00 fee for any account closed within 90 days. I guess this is to protect them from rate-hopping depositers, but it was difficult to find the info when I looked at opening an account there.

If you close the account by mail you will be assessed a $10.00 fee, as well (I guess online closure is free, but this isn't specifically stated).

Perhaps these fees were justified in the days of 5+% interest, but for an online bank offering 1% (as of 2/15/12) they seem out of line.

Perhaps most egregious is that Salem Direct Five pulled a hard credit report on me when I applied for an eOne Savings Account for under $500; an account which I did not consummate after doing a deeper dive into their Disclosures. This hard credit report pull will remain on my credit report for 2 years; potentially affecting my credit score--depending on who's looking, and how the credit agency applies its unique FICO algorithm--as if I had applied for credit.

I can not recommend Salem Five Direct to anyone for anything whatsoever.

Fees And Limits - Beware!!!

I recently opened up a Salem Five account, after all 1.25% guaranteed til Apr 2012, that's for me!

However, be very careful before you open an account.  It turns out they charge $3 for every ACH transfer out.  As well, they cap monthly debits at $25,000 per mo.  And you can only ACH in $20,000 (although you can send them a check if you want to deposit more).  Still - even if you deposit more, they won't allow you to take out more than $25k per month and will charge you $3 to get it.

Worst fee structure and limits I've ever found.  Stay far away!

They Will Hold Your Money Hostage!!!

I just opened a Salem Five Savings account and am very disappointed by all the hidden terms.  Your money will go into the account very easily, but beware, they will make it very hard to get it back.  After I opened the account I called to verify some of the things I read (a little too late.)  The rep told me that if I did not want to keep the account, I could just have an external bank account transfer the money out (without any fees).  Well, I tried that, and they replied to my external bank that my funds were frozen.  Yet, if I login to my account, it says they are available for withdrawal.

It's just another example of the ugly side of banking.  Steer clear!

Salemfive Fees And Lack Of Customer Service

Stay away from this bank. The people running this bank could care less about customers. SaleFive will fee you constantly



Data for Q4 2013

Institution Health


Texas Ratio


The Texas Ratio is an indicator of how much funds a bank has available compared to the total value of loans considered at risk. As of December 31, 2013 Salem Five Direct had $35 million in non-current loans and owned real-estate with $374.1 million in equity and loan loss allowances on hand to cover it. This gives Salem Five Direct a Texas Ratio of 9.36% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.

Texas Ratio Trend


The Texas Ratio for Salem Five Direct decreased slightly from 11.92% as of December 31, 2012 to 9.36% as of December 31, 2013, resulting in a positive change of 21.50%.This indicates that the balance sheet and financial strength for Salem Five Direct has improved slightly in recent periods.

Deposit Growth


In the past year, Salem Five Direct has increased its total deposits by $454.03 million, resulting in 21.81% growth for the year. A strong track record of growth is an indicator of consumer confidence and the bank's ability to strengthen its balance sheet. The growth Salem Five Direct has shown is excellent.



Both FDIC and NCUA consider capitalization levels of banks and credit unions to be of high importance. Higher capitalization allows for a greater buffer when cover loans that may fail in the future. Salem Five Direct has $3.38 billion in assets with $374.1 million in equity, resulting in a capitalization level of 11.06%, which is excellent.

Institution Statistics

FDIC Certificate #23296
Year Established1855
Primary RegulatorFDIC
Assets and Liabilities
Assets$3.38 billion
Loans$2.24 billion
Deposits$2.54 billion
Equity Capital$351.05 million
Loan Loss Allowance$23.06 million
Unbacked Noncurrent Loans$30.16 million
Real Estate Owned$4.84 million
Historic Data - December 2012
Assets$3.00 billion
Equity Capital$286.30 million
Loan Loss Allowance$21.41 million
Unbacked Noncurrent Loans$30.16 million
Real Estate Owned$6.12 million
Profit Margin - Quarterly
Net Interest Margin2.89%
Return on Assets0.78%
Return on Equity7.76%
Interest Income$122.69 million
Skip to rates for:

Always verify rates and promotions with the bank or credit union. We are not Salem Five Direct, we are a rate comparison website and can not provide official rates or promotions.

Salem Five Direct Savings Account Rates

1.00%-$500keOne Savings - New Customers Only

Salem Five Direct Checking Account Rates

0.25%-$1meOne Checking

Salem Five Direct CD Rates

2.00%$10k-60 Month eCD Special
1.25%$10k-24 Month eCD Special
1.00%$10k-12 Month eCD Special

Salem Five Direct is an Internet only bank and does not have branch locations. Its headquarters is located at 71 Washington Street - Salem, MA 01970