Salem Five is headquartered in SALEM and is the 5th largest bank in the state of Massachusetts. It is also the 217th largest bank in the nation. It was established in 1855 and as of March of 2023, it had grown to 629 employees at 34 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.
No Internal Transfers??
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?
Horrible Service
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.
Data as of Q1 2023
Learn why bank health mattersHealth Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 23296 |
| Year Established | 1855 |
| Employees | 629 |
| Primary Regulator | FDIC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 1.15% |
| Return on Equity - YTD | 10.06% |
| Annual Interest Income | $67.0MM |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q1 2023vs Q1 2022 | $6.70B$6.04B |
| Loans | Q1 2023vs Q1 2022 | $4.79B$4.25B |
| Deposits | Q1 2023vs Q1 2022 | $5.02B$5.05B |
| Equity Capital | Q1 2023vs Q1 2022 | $769.2MM$707.7MM |
| Loan Loss Allowance | Q1 2023vs Q1 2022 | $63.6MM$59.0MM |
| Unbacked Noncurrent Loans | Q1 2023vs Q1 2022 | $14.3MM$22.2MM |
| Real Estate Owned | Q1 2023vs Q1 2022 | $0$0 |
