Salem Five is headquartered in Salem and is the 5th largest bank in the state of Massachusetts. It is also the 225th largest bank in the nation. It was established in 1855 and as of June of 2022, it had grown to 603 employees at 35 locations. Salem Five's money market rates are 8X the national average, and it boasts an A+ health rating.
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I Love Them!
I had to write this review because I am shocked at these ratings. This bank is GREAT! Great products, no fees, good service, up to date with the times. I have the SalemFive Direct eOne Savings and Checking combo with an interest rate of 1.5%. Not bad for complete freedom to your money! Other Banks don't have a rate like this for CD's! I do agree; however, that their penalty for breaking a CD is much too high - they need to fix that!
If You Can Put Up With A 150-Year Old Institution . . .
This 150-year old brink-n-mortar bank is trying to join the 21st century by becoming an "internet bank" - it fails msierably.They have no clue how internet banking works! And interest in learning how either. They think people still use horse-n-buggy for transport and women wear very tight corsetts.
So, why am I trusting them with my money? They have very conservative thinking - which is good. Their state - Massechussetts - forces them to insure a much higher limit than FDIC. They pay better interest rates. And I don't have to see their CEO or bank employees in person to aggravate me further.
They have STUPID limits on incoming deposits - as if Butch Cassidy is going to deposit their loot into this bank.
The CEO must be a complete idiot not to hire top-notch software talent to learn from them to become an internet bank.
Early CD Penalty Of 4% Is Horrific Thing To Do To A Client
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.
4% Penalty For Early CD Withdrawal Is Disgusting
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.
Data as of Q2 2022
Learn why bank health mattersHealth Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 23296 |
| Year Established | 1855 |
| Employees | 603 |
| Primary Regulator | FDIC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 0.58% |
| Return on Equity - YTD | 4.99% |
| Annual Interest Income | $87.4MM |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q2 2022vs Q2 2021 | $6.26B$5.79B |
| Loans | Q2 2022vs Q2 2021 | $4.40B$4.06B |
| Deposits | Q2 2022vs Q2 2021 | $4.76B$4.37B |
| Equity Capital | Q2 2022vs Q2 2021 | $718.7MM$662.9MM |
| Loan Loss Allowance | Q2 2022vs Q2 2021 | $60.1MM$54.2MM |
| Unbacked Noncurrent Loans | Q2 2022vs Q2 2021 | $19.1MM$24.7MM |
| Real Estate Owned | Q2 2022vs Q2 2021 | $915.00K$0 |
