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You might like Salem Five Direct if you're searching for an online institution with a high-yield savings account and cash-back checking account. Its savings rate is on par with some of the best high-yield savings accounts right now. Its CDs have high minimum opening deposits, though.
Salem Five Direct: Overall Bank Rating
| Feature | Insider rating (out of 5) |
| Savings | 4.5 |
| Checking | 4 |
| CD | 3 |
| Trustworthiness | 5 |
| Total | 4 |
Salem Five Direct: Pros and Cons
| Pros | Cons |
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Salem Five Direct eOne Savings Review
no monthly service fee
4.50%
$10
- High APY on balances under $1 million
- $10 minimum opening deposit
- No monthly service fees
- Can't open if you have a savings or checking account opened at a Salem 5 branch
You might like Salem Five Direct if you're searching for an online institution with a high-yield savings account and cash-back checking account. It has one of the best high-yield savings accounts right now.
Salem Five Direct eOne Savings- Earn 4.50% APY on daily account balances under $1 million
- If you have a daily balance over $1 million your money may be transferred to a Salem Statement Savings Account, which pays 0.01% APY
- Can't open if you have a savings or checking account opened at a Salem 5 branch
- Interest compounded and deposited monthly
- FDIC insured
Salem Five Direct eOne Savings is a strong high-yield savings account that pays a much higher interest rate than the average savings account right now. It doesn't charge monthly services and has a low minimum opening deposit.
You might want to take note of how much you keep in the account. Salem Five Direct may transfer money to a Statement Savings Account if you have more than $1 million in your account. This account only offers 0.01% APY (Annual Percentage Yield).
Salem Five Direct Salem Five Direct eOne CheckingReview
no monthly service fee
0.01%
$10
- $10 opening deposit
- No monthly service fees
- No out-of-network ATM fees
- Earn cash back on your debit card purchases
- Get up to $15 in out-of-network ATM reimbursements each month
- Overdraft protection available
- $25 overdraft fee
- $3 overdraft transfer fee
- Can't open if you have a savings or checking account opened at a Salem 5 branch
- Access to over 55,000 fee-free ATMs through the Allpoint Network
- Earn 0.01% APY on daily account balances under $1 million
- If you have a daily balance over $1 million, your money may be transferred to another bank account, which pays 0.10% APY
- Get $0.05 for each debit card purchase; Cash back rewards will be deposited into your account at the end of each month
- Can't open if you have a savings or checking account opened at a Salem 5 branch
- Overdraft protection that links your checking account to a savings account or apply for a line of credit
- Interest compounded and deposited monthly
- FDIC insured
Salem Five Direct eOne Checking might be appealing if you frequently use your debit card. You'll get $0.05 for every debit card purchase, which will be deposited into your bank account at the end of each month.
You may also like this account if you want easy access to ATMs. The institution has an extensive ATM network and you'll get up to $15 in out-of-network ATM reimbursements each month.
Salem Five Direct Special CDs Review
2.00% to 4.50%
$10,000
- Solid interest rates
- Standard early withdrawal penalties
- $10,000 minimum opening deposit
- Limited CD terms
- Terms range from 6 months to 2 years
- Interest compounded and deposited monthly
- FDIC insured
Salem Five Direct pays competitive interest rates on short-term CDs of 1 year or less. You'll need a minimum of $10,000 to open an account, which is a pretty substantial amount compared to initial deposits of other online banks. You'll also find other online banks with more CD terms.
How Salem Five Direct Works
Salem Five Direct is the online operation of the Massachusetts-based bank Salem Five.
It has online-only savings accounts, checking accounts, and CDs. You're only eligible to open an online Salem Five Direct savings or checking account if you do not have a bank account at a local Massachusetts branch.
Customers have access to over 55,000 fee-free ATMs through the Allpoint network.
Call the Contact Center anytime from 8 a.m. to 6 p.m. ET on weekdays, 9 a.m. to 3 p.m. ET on Saturdays, or 11 a.m. to 3 p.m. ET on Sundays. Representatives are also available from 8 a.m. to 6 p.m. via live chat.
The bank's mobile app has 3.2 out of 5 stars in the Google Play Store and 4.7 out of 5 stars in the Apple store.
Salem Five Direct online bank accounts are FDIC insured and DIF insured. If your bank account is FDIC insured up to $250,000 is safe in your bank account. Banks with DIF insurance allow you to exceed the $250,000 limit and protect any additional money deposited through private insurance.
Salem Five Direct Trustworthiness and BBB Score
Salem Five Direct hasn't been involved in any recent public scandals.
We also include ratings from the Better Business Bureau.
The BBB rates businesses by how they deal with customer issues. Salem Five has an A- rating. The highest possible rating is A+ but Salem Five hasn't responded to a couple of complaints on the BBB website.
Salem Five Direct vs. MySavingsDirect
Similar to Salem Five Direct, MySavings Direct is an online-only institution. MySavingsDirect is a part of Emigrant Bank, and offers specifically online savings accounts and CDs.
The MySavingsDirect Savings Account pays 4.35% APY, which is lower than Salem Five Direct eOne Savings.
It's more of a toss-up between CDs, though. Salem Five Direct offers CD specials under a year with more competitive rates than MySavingsDirect MyTerm CDs, but you'll need a minimum of $10,000. MySavingsDirect MyTerm CDs have more lenient opening requirements, though. You'll only need $1,000 to open a CD with MySavingsDirect.
Also think about whether you want to open online checking accounts. MySavingsDirect doesn't have any, but Salem Five Direct does offer one.
Salem Five Direct vs. Bank 5 Connect
Bank5Connect is the online division of the Massachusetts-based bank Bank5.
Salem Five Direct has a comparable rate to Bank5 Connect. However, keep in mind that both banks also have balance requirements to earn interest.
Salem Five Direct lets you earn 4.50% APY on account balances under $1 million. Meanwhile, Bank5 Connect has two account options. The rate for Bank5 Connect Jumbo Savings Account is a lot more competitve than the Bank5 Connect Savings Account, but it has higher minimum opening and interest requirements.
Depending on your preferences, you might find it easier to earn interest at one bank over the other.
If you're planning to open a CD, Bank5 offers more CD terms. You'll also need a minimum opening deposit of $500.
Salem Five Direct FAQs
You may open a Salem Five Direct bank account online from anywhere in the US. However, you're only eligible to open online savings or checking account if you do not have a bank account at a Salem Five branch in Massachusetts. This does not apply to CDs.
Salem Five Direct is insured by the Federal Deposit Insurance Corporation and Massachusetts Depositors Insurance Fund (DIF). When a bank is FDIC insured, up to $250,000 is secure in a bank account. If a bank has DIF insurance, any money deposited into your account that exceeds the $250,000 limit is protected through private insurance.
Salem Five Direct might be a good choice if you are comfortable with online banking. The bank has a fee-free high-yield savings account and a cashback checking account.
If you are planning open a CD, you may want to consider additional options. Salem Five Direct has limited terms and requires a minimum of at least $10,000 for an initial deposit.
