Salem Five is headquartered in SALEM and is the 5th largest bank in the state of Massachusetts. It is also the 197th largest bank in the nation. It was established in 1855 and as of December of 2024, it had grown to 650 employees at 34 locations. Salem Five's money market rates are 7X the national average, and it boasts an A+ health rating.
High Rates But Not Modern
Just finished a 12-mo CD with them. They offered to renew for a new 9, 12, or 15-mo CD, mail a check, or deposit to another Salem account. No option to ACH or wire out (at least without pushing to another Salem account first), and the renewal form is literally just opening a ticket with support, not setting any automated values on the backend. (They better not miss that ticket!)
In fact, everything seems to be a matter of asking support, as the online banking only has the basic functions everyone expects, and for CDs the only things that are actually available are viewing the balance and opening tickets.
I think you can set beneficiaries when initially opening an account, but it seems reviewing or updating requires contacting support.
No Internal Transfers??
Update 11/16/23
Internal transfer from savings to checking is working now.
Original posting:
I opened savings and checking accounts at Salem Five about a month ago, and everything seemed nicely handled on their website. A few days ago, I anticipated writing a large check and thought, "No problem, I'll just move cash from savings to checking." NO! "What??!" Of the dozens of bank accounts that I've had in my life, this is the only one that does not allow transfers between checking and savings. The only way you can put money into your Salem Five checking account is by transferring from another bank. Is this insane, or am I missing something?
Takes DAYS To Do 10 Second Process
SalemFive incompetence can cost you $$$ in losses or more, like it has for me.
Transferring $ from one online account to anoither at the SAME bank takes seconds, EXCEPT at SalemFive.
One agent told me it would be done by "end of day" then another told me "1 to business days". As a result, I've already lost over $100 in interest due to SalemFive.
Something To Consider Upfront...
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...
Data as of Q4 2024
Learn why bank health mattersHealth Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 23296 |
| Year Established | 1855 |
| Employees | 650 |
| Primary Regulator | FDIC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 0.72% |
| Return on Equity - YTD | 6.34% |
| Annual Interest Income | $354.7MM |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q4 2024vs Q4 2023 | $7.84B$7.29B |
| Loans | Q4 2024vs Q4 2023 | $5.89B$5.33B |
| Deposits | Q4 2024vs Q4 2023 | $5.63B$5.13B |
| Equity Capital | Q4 2024vs Q4 2023 | $887.5MM$821.2MM |
| Loan Loss Allowance | Q4 2024vs Q4 2023 | $67.8MM$63.4MM |
| Unbacked Noncurrent Loans | Q4 2024vs Q4 2023 | $10.4MM$12.8MM |
| Real Estate Owned | Q4 2024vs Q4 2023 | $10MM$12.2MM |
