Salem Five Direct Offers Rate-Leading 18-Month CD Special
Massachusetts-based Salem Five Direct is currently offering a series of CD Specials. Of the nine available CD Specials, the 18-month has the most competitive rate – 5.00% APY. The CD Specials have a $10k minimum/$500k maximum deposit.
As stated in the CD Specials Account Disclosure, the Early Withdrawal Penalty reads as follows:
You may make withdrawals of principal from your account before maturity only if we agree at the time you request the withdrawal. If you withdraw principal before the maturity date, a penalty equal to 4% of the principal balance withdrawn will be charged to your account.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 amount of the penalty exceeds the amount of earned interest that has not already been paid to you, we may have to deduct some of the penalty from your principal.
While it’s been nearly five years since I wrote about a Salem Five Direct CD, I have written several blog posts about the eOne Savings account during that time. The most recent eOne Savings blog post was in early December, following a 60 bps rate increase. The eOne Savings 4.10% APY "on every dollar for balances up to $1,000,000.” Balances over $1 million will be transferred to a Statement Savings Account that currently earns 0.01% APY.
|4.10*%||-||$1m||Salem Five Direct||eOne Savings - New Money|
|OTHER TIERS: 0.01% → $1m+|
More details about the eOne Savings account can be found in December 2022 blog post, but the following summary covers the basics.
- eOne Savings accounts opened as of today will earn 4.10% APY on balances up to $1 million.
- Balances greater than $1 million may be transferred to a Statement Savings Account, which currently earns 0.01% APY.
- eOne Savings may be used to provide overdraft protection for eOne Checking.
- New money (funds not previously on deposit with Salem Five or Salem Five Direct) is required for new accounts.
- There is no rate guarantee.
- The minimum opening deposit is now $10 (down from $100).
- This account must be opened online.
- Existing Salem Five Bank (not Salem Five Direct) checking or savings account holders are not eligible, “except that consumers with an existing eOne Checking Account are eligible for the eOne Savings Account.”
- At the time of the application, only one joint account holder and one beneficiary can be added. After the account is approved and opened, additional owners can be added over the phone.
Availability and Account Opening
Salem Five Direct opened its virtual doors nearly 16 years ago. As an online division of Massachusetts-based Salem Five, Salem Five Direct offers its product line on a nationwide basis to all U.S. citizens and permanent resident aliens who have valid Social Security numbers.
As an internet bank, Salem Five Direct has no brick-and-mortar branches. Opening any type of account, including an 18-month CD Special or an eOne Savings account, can only be done online.
Funding and Other Details
The following information is from a Live Chat with CSR.
- Funding – ACH, check, or internal transfer.
- Interest – Compounded/credited monthly and can be transferred to another account or sent out as a check. (Must be requested in writing by either letter or secured message in online banking.)
- Maturing Funds – ACH, wire transfer ($25 fee), cashier’s check to address on file, or internal transfer.
- Beneficiaries – Only one beneficiary can be designated, with Social Security number required.
- Grace Period – 10 calendar days before automatic renewal.
- Credit Check – “Salem Five reserves the right to do a soft or hard pull when applying for an account at our discretion. For security purposes, we are unable to disclose which credit reference or reporting agency(ies) that are used by the bank.”
As an online division of Salem Five, Salem Five Direct operates under Salem Five’s FDIC Certificate and shares its financial history.
Salem Five Direct/Salem Five has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.56% (excellent) based on June 30, 2022 data. In the past year, the Bank has increased its total non-brokered deposits by $384.86 million, an excellent annual growth rate of 8.8%. Please refer to our financial overview of Salem Five Direct/Salem Five (FDIC Certificate # 23296) for more details.
Established in 1855, Salem Five Cents Savings Bank was known as the "Nickel Bank," because the first day’s deposits ranged from five cents and up. Headquartered in Salem, Massachusetts, the Bank has always considered itself innovative, and in 2015 added the Cardless Cash ATM, which allows customers to “open the bank’s mobile app on their smartphone, put in the amount they want withdrawn, then visit an ATM, scan a QR code, and pick up their money.”
Between 2013-2018, Salem Five Bancorp (parent company of Salem Five) completed the acquisitions of three Massachusetts banks: Stoneham Savings Bank (2013), Georgetown Bank (2017), and Sage Bank (2018). Salem Five is currently the fifth largest bank in Massachusetts, with assets in excess of $6.2 billion and nearly 170,000 customer accounts.
How the 18-Month CD Special Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, no banks or credit unions have higher rates than the rate currently offered on the Salem Five Direct 18-month CD Special. The following table compares the 18-month CD Special to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
|APY||CD Term (Early Withdrawal Penalty)||Credit Union/Bank|
|5.00%||18-Month High CD Special (EWP=4% of principal)||Salem Five Direct|
|5.00%||18-Month High Yield CD (EWP=60 days)||Ally Bank|
|5.00%||15-Month CD Special (EWP=90 days)||Langley Federal Credit Union|
|5.00%||15-Month Promotional CD (EWP=270 days)||Kinecta Federal Credit Union|
|4.85%||15-Month CD, $1k min (EWP=½ of maturity interest)||Brilliant Bank|
The above information and rates are accurate as of 2/24/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our Best CD Rates Table page.
Still waiting for my bonus. Not even a response 9 days after reporting it on the last day it was due. I will expect interest.
I called today (11th business day) and the CSR put me on hold and then came back and said they are still working on the issue. The CSR told me that a large number of people received either no bonus or a lower bonus than they should have. She had no idea when the issue would be resolved. I understand a computer glitch but I see no reason why this whole thing can't be fixed in two weeks.
But whatever it is it's culminating in this. I've never seen anything quite like it.
Seems like Ally is like Citi when it comes to bonuses. Citi didn't pay me a bonus. I called support who said they would get back to me in 5 business days for an answer. They eventually paid the bonus.