Salem Five CD and Savings Account Promo Updates

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Salem Five Bank increased the rate of its 2-year CD special from 1.50% to 1.75% APY. Its other two special CD rates remain the same and not too competitive: 2.50% APY for 5 years and 1.10% APY for 14 months. Minimum deposit is $10K for a regular CD and $2K for an IRA CD. These CD rates are listed in the bank's account rates page as of 4/27/2011.

This new 2-year CD rate is close to the best nationally available 2-year CD rate of 1.77% APY at Self-Help Credit Union (as of 4/27/2011).

I reviewed the details of these CDs and the application process in my December Salem Five CD review. These CDs can be opened online by people in any state. One downside to Salem Five's long-term CDs is a severe early withdrawal penalty. For a 5-year term, it's 15 months of interest. The penalty for the 14-month and 2-year CDs is 6 months of interest. Please refer to their CD Disclosure for more details.

Salem Five Direct Savings Account Promo Update

Salem Five's online division, Salem Five Direct, continues to offer a savings account promotion with a 1.25% APY that's guaranteed to last until April 1, 2012. Please refer to my eOne Savings Account promo review for the full details.

Existing eOne Savings Account Customers Don't Qualify

One important note about this promo is that those who already have an eOne Savings account appear to be out of luck. Two readers had been told that existing eOne Savings Account customers could open a new eOne Savings Account and qualify for this promo. After the new accounts were opened, Salem Five closed the accounts and informed them that customers can have only one eOne Savings Account.

These types of promotions may help the bank attract new customers and new deposits, but they're unfair to existing customers. And when the bank makes a mistake in their communication and then takes it out on the customers like this, it's even worse.

Comments
Bob C
Bob C (anonymous)   |     |   Comment #1
I am looking at different savings accounts at the moment. One I am considering is the Post Office Online Saver. It seems like a pretty good rate, but could also go for a fixed term bond. 
Update on Salem Five Bank's CD Specials - Available Nationwide

Salem Five Bank increased the rate of its 2-year CD special from 1.50% to 1.75% APY. Its other two special CD rates remain the same: 2.75% APY for 5 years and 1.35% APY for 14 months. Minimum deposit is $10K for a regular CD and $2K for an IRA CD. These CD rates are listed in the bank's account rates page as of 1/12/2011.

Certificate of Deposit Details

I reviewed the details of these CDs and the application process in my December Salem Five CD review. These CDs can be opened online...

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Competitive CD Specials at Salem Five Bank - Available Nationwide

Salem Five Bank is offering three special CDs: a 2.75% APY 5-year CD, a 1.50% APY 2-year CD and a 1.35% APY 14-month CD. Minimum deposit is $10K for a regular CD and $2K for an IRA CD. These CD rates are listed in the bank's account rates page as of 12/15/2010. According to a bank rep, rates changes are typically made on Tuesdays so these rates will likely last at least until 12/21/2010.

Certificate of Deposit Details

These CDs can be opened online by people in any state. I contacted the...

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5.00% 60-Month CD at Salem Five Bank
Salem Five Bank is offering a special 5.00% APY 60-month CD. The minimum deposit is $10,000. There are two other special CDs which are less competitive including a 3.75% APY 20-month CD and a 4.00% APY 36-Month CD.

These CDs can be opened online by people in any state. A signature card must be signed and mailed. I was told by the CSR that the rates may change every Tuesday. The next potential rate change would be next Tuesday 7/29/08. If you mail in a check and it's postmarked by then,...

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5.25% Savings Account at Salem Five
Salem Five has a new online product called the eSavings Account which pays 5.25% APY. It requires that you open a checking account called the eChecking. Both have a $100 minimum opening deposit requirement, but neither has a minimum balance requirement after opening, and there are no maintenance fees. The only other requirement to retain the high yield is a minimum of 3 bill payments each month from the eChecking account (Bill pay is free). Without the 3 online bill payments, you'll earn a reduced interest rate (currently 0.50% APY)....
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4.75% Money Market Account at SalemFive
SalemFive increased the yield on their Star Money Market account from 4.50% to 4.75% APY. The 4.75% applies to balances of over $10K. Balances under $10K earn 0.55%. There's no minimum balance required to waive monthly maintenance fees. As I posted on May 12, they also have a good 9-month CD deal with an APY of 5.30%.

Accounts can be opened at their branches in Massachusetts or online by people from any state.

In addition to government-backed FDIC insurance, SalemFive has private DIF insurance which covers deposits above the FDIC limits.

Thanks...





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