Salem Five Direct Review: Checking, Savings and CD Accounts

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Updated on Saturday, August 1, 2020

Salem Five Direct’s Checking account options

Salem Five Direct eOne Checking Account

This checking account offers a terrific combination of benefits — unfortunately, it’s too bad the interest rate is a little low.
APYMinimum Balance Amount to earn APY
0.10%
$0.01
0.10%
$1,000,000+
  • Minimum opening deposit: $100
  • Monthly account maintenance fee: None
  • ATM fees: none
  • ATM fee refunds: Up to $15 per statement cycle at non-Salem Five ATMs.
  • Overdraft fees: $35, limit of five charges per day. No charge if account is withdrawn by $5 or less.

To open a Salem Five Direct eOne Checking account, you need to deposit at least $100. After that, there is no minimum balance requirement, and this account does not charge a monthly maintenance fee.

This account also provides online banking, a free first order of checks and a debit card. When you make non-PIN-based purchases on the Salem Five Direct debit card, you earn $0.05 of cashback for every transaction.

If you make withdrawals from non-Salem Five ATMs, Salem Five Direct will not charge a fee. They will also reimburse up to $15 per statement cycle of fees charged by the ATM owners.

The Salem Five Direct eOne Checking account earns interest on all balances. If you have more than $1 million in the account, Salem Five Direct may transfer the funds over $1 million to another account with a lower interest rate.

You can only open the Salem Five Direct eOne Checking account online; it is not available at Salem Five branches. If you already have another Salem Five checking account, you will not be able open this account. When you apply, you will need to provide your home address, email, Social Security Number and driver’s license. You will also need to provide a way to fund the account either by bank transfer or by mailing a check — the initial deposit cannot come from funds currently deposited at Salem Five Bank.

SEE DETAILS Secured

on Salem Five Direct’s secure website

Member FDIC

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How Salem Five Direct’s checking accounts compare

There’s a lot to like about the Salem Five Direct checking account. It has no balance requirement or monthly fee, earns cash back on debit purchases, reimburses up to $15 of ATM fees from non Salem Five ATMs and comes with a free order of checks.

The only downside is the account’s interest rate is not as high as it could be, though it’s definitely better than the nonexistent rates at many large national banks. However, there are other online banks that pay much more interest on checking accounts, while still offering the same benefits as Salem Five Direct.

Salem Five Direct’s Savings account options

Salem Five Direct eOne Savings Account

This is one of the best online savings accounts on the market, thanks to its sky-high interest rate and no monthly fee.
APYMinimum Balance Amount to earn APY
1.00%
$0.01-$1,000,000
0.02%
$1,000,000+
  • Minimum opening deposit: $100
  • Monthly account maintenance fee: None
  • ATM fees: $2 per transaction at non-Salem Five ATMs
  • ATM fee refunds: None
  • Overdraft fees: $35, limit of five charges per day. No charge if account is withdrawn by $5 or less.

The Salem Five Direct eOne Savings account requires an opening deposit of at least $100. After that there is no minimum balance requirement and this account does not charge a monthly fee.

The Salem Five Direct eOne Savings account earns a spectacular interest rate and there is no minimum balance requirement to earn the full rate. However, if you have more than $1 million in the account, they may transfer balances over $1 million into an account with a much lower interest rate.

Since this is a savings account, it limits how often you can take money out of the account. You can only make six transfers out of the account per statement cycle. If you make more than six, Salem Five will charge a $10 fee on each excess transaction. In addition, if you use the debit card at a non-Salem Five Bank ATM, you will owe a $2 fee per transaction plus whatever the ATM owner charges. This account does not refund out-of-network ATM fees.

You can only open the Salem Five Direct eOne Savings account online; it is not available at Salem Five branches. If you already have another Salem Five checking or savings account, you cannot open this account. However, there is one exception — if you only have the Salem Five eOne Checking account, you can still open the eOne Savings account.

When you apply, you will need to provide your home address, email, Social Security Number and driver’s license. You will also need to provide a way to fund the account either by check or bank transfer.

SEE DETAILS Secured

on Salem Five Direct’s secure website

Member FDIC

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How Salem Five Direct’s savings accounts compare

The Salem Five Direct savings account is a fantastic option. If you look at our list of the best high-yield savings accounts in the country, Salem Five Direct made the cut thanks to its spectacular interest rate, low initial deposit requirement and no monthly fee.

However, there is one downside for this account — if you don’t live near a Salem Five ATM, taking your money out of this account could get a little expensive. It charges a $2 fee for out-of-network ATM transactions and does not refund fees from the ATM owner.

To get around this problem, Salem Five Direct offers a promotion where you can open both their online checking and savings accounts with one application — that way, you can quickly transfer money out of the savings account into checking, which provides lower-cost ATM access.

Salem Five Direct’s CD rates

Salem Five Direct High-Yield CDs

These CDs have terrific rates, but they require a high minimum deposit of at least $10,000.
TermAPY
18 Months0.50%
36 Months0.75%
  • Minimum opening deposit: $10,000
  • Minimum balance amount to earn APY: $10,000
  • Early withdrawal penalty: No penalty for taking out interest; 4% of any principal taken out before maturity.

The Salem Five Direct High-Yield CDs require an opening deposit of at least $10,000, and you’ll also need to keep a balance of $10,000 to earn the APY. The maximum you can deposit into a CD is $500,000.

They only offer two CD terms, 18 months and 36 months; both options pay a terrific interest rate. These CDs charge an early withdrawal penalty if you take money out before the end of the term. But while you’re able to withdraw your interest earnings without owing a penalty, if you take out any principal before the end of the term you will lose 4% of the principal amount taken out.

You can only open the Salem Five Direct High-Yield CDs online. You will need to provide your driver’s license, Social Security number and address. You will also need to provide a way to fund the account, either a check or bank transfer.

SEE DETAILS Secured

on Salem Five Direct’s secure website

Member FDIC

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How Salem Five Direct’s CD rates compare

The Salem Five Direct CDs will not be a match for everyone. They require a high opening deposit of at least $10,000 and only come in two terms, 18 month and 36 month. But if you plan on depositing this much and the terms match what you’re looking for, then the Salem Five Direct CDs could be an excellent fit.

The 18 month CD is the better option of the two but there are a few other CDs which pay a higher rate for the same time commitment.

If you’d like to open a CD for a different term, for less than $10,000, or just want to see what else is out there, check out these best CDs on the market today.

Overall review of Salem Five Direct’s banking products

Salem Five Direct has gone with quality over quantity for their deposit accounts. While they offer only a few options, each account stacks up well against the competition.

The checking account makes it convenient to access your money, thanks to its refunds for ATM fees and its debit card that earns cash back on purchases; the only disadvantage is its relatively low interest rate. The savings account offers a terrific rate, but makes it too expensive to access your money from ATMs. Still, you could get the best of both worlds by opening both accounts and transferring money back and forth as needed.

The Salem Five Direct 36 month CD also offers a phenomenal interest rate for those who can meet the $10,000 minimum deposit requirement. The 18 month CD is not bad either, but there are better options out there.

The main downside of the Salem Five Direct banking products is there isn’t a wide variety, so you might not be able to find what you’re looking for — as an example, if you need a money market account, you won’t be able to open one here. But if Salem Five Direct’s accounts match up with your financial goals, they are worth serious consideration for your money.

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