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This particular bank will use an ACH transfer initially when opening an account. However, upon closing , that is not an option. The result is simply getting a check in the mail. That means lengthy delays....Two business days to send the check. Several days in the U.S. mail. And then a seven business day hold when depositing the check at the next bank.
Rates are attractive and competitive. Customer service is excellent.
But, that particular policy might be a deal breaker...
I was informed today that my CD yielding 0.75 % would incur a penalty of 4 % of principal for early withdrawal. For a bank that in theory is customer owned this policy seems customer hostile.
I'm a customer at 11 banks, and Salem Five is the only one that does not allow a Trust as beneficiary. Their very good savings APY tempts me to fund it up to the FDIC limit, but when I die I want that money to go to my Trust, not argued in court.
Otherwise, as other reviewers have pointed out, the transfer limits are another major factor when considering putting more than a few K in the account.
What a shame, because they're nice folks to deal with, their website is user friendly, and I like having paper checks.
With recent increases in interest rates, I decided to open several different high-yield savings accounts with smaller, lesser-known banks. All fdic insured. Salem Five Direct, being one of the older institutions, led me to expect superior and more established service. However, my experience with them turned out to be the worst compared to any other bank I have ever worked with in my life!
To start, after I opened a high-yield savings account online and indicated my intention to transfer a substantial sum, they conducted a hard credit pull on me, citing random slection, which left me quite disappointed and questioning its legality. I prefer basic security features like email notifications and text messages, but none of these options were available with this bank; they solely communicated through secure messages.
Fast forward four months, I checked my balance one day, only to find that my account had disappeared entirely. There were no paper trails or statements. Everything was gone! No email from them. Frankly, I panicked. Unfortunately, the bank didn't have a 24/7 hotline, and when I finally managed to contact them, a representative informed me that they had closed my account and sent me a check. Their reason was an identity verification issue, which they attempted to address with just one message on their portal that I missed, leading to the abrupt account closure. No email or no phone communication.I found it astonishing that they couldn't have reached out via email or phone. This entire experience, from start to finish, was the worst customer service I've encountered. I strongly advise against using this bank. Smallest and less known banks offer way better service.
I am shocked to learn that my CD of 300,000 has a 4% penalty of principal. That is a $12,000 fee. It is astonishingly bad banking practice - and that fee is 100% more than my cd rate. And I need the money for my mothers healthcare. This is not an insurance produce, should have some legal boundary as it feels like price gouging. ALL banks generally do a penalty of 1 month, 3 months, or 6 months. It is never a percent of principal, especially 4%. How could a local entity, board of directors, executives at the bank approved something so adversely impactful to the consumer. This is a CD that is often for seniors, often a low percent, and occasionally life happens and there is a need to get the money early. But can't. And if you apply for a waiver of fee, they will only send a check on your behalf to the healthcare provider for the exact amount you owe which assumes that the bill is in arrears. I can't really tell my mother that I can get her money but only after she pays $12,000 in penalties.
Salem Five should be ashamed for having a 4% of principal redemption penalty for breaking a CD early. Most customers are local citizens and they are stuck with bad rates and during the rising rate environment, management of Salem Five has showed how little they care about their customers.
Fees are insane and customer service is not very helpful. Lost my job and overdrew my account by 9 dollars; was charged a 35 dollar fee. Deposited money to get back in the positive, but was not able to get the fee reversed or even reduced.
When I went to close my account, I was told I needed something notarized; which I cannot even afford until I start my new job. Just lacking compassion plus high fees. Stay away