Salem Five Direct Review: High Interest on Deposit Products
Written by
Caitlyn Moorhead
Edited by
Joe Evans, CFHCâ„¢
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Salem Five Direct offers top-tier interest rates with no fees or minimums.
Salem Five Direct, the online-only division of Salem Five, provides competitive checking, savings and CD accounts that feature higher-than-average annual percentage yields. With a focus on simplicity, the bank appeals to customers who want straightforward financial products without worrying about hidden fees or minimum balance requirements.
Salem Five Direct is the online-only savings arm of Salem Five Bank, created to offer a simpler, digital-first way to save without branch overhead. Unlike its parent bank’s traditional accounts, Salem Five Direct is designed specifically for savers who want higher interest rates, low friction and minimal fees, all managed online.
This review explains how Salem Five Direct works, its current savings and CD offerings, who it’s best suited for and where it may fall short.
Salem Five Direct Checking Accounts
Salem Five Direct offers one main checking option: eOne Checking. The live GOBankingRates review positions it as a low-friction online checking account with a low opening deposit, ATM fee reimbursements and a few uncommon perks, including cash back on debit card purchases. The trade-off is that the APY is minimal, so the account is more compelling for everyday convenience than for earning interest.
Here are some key points to know:
- Low-cost structure: No monthly service fee and no minimum balance requirement.
- Low opening deposit: You only need $10 to open the account.
- ATM flexibility: Salem Five Direct reimburses out-of-network ATM fees up to $15 per statement cycle.
- Interest is not the selling point: eOne Checking currently earns 0.01% APY.
Best For
Online Banks
High-Yield Savings Accounts
Mobile App
No Fees
Great APYs
Earn Interest and Cash Back on Purchases
Salem Five Direct eOne Checking has no minimum balance requirements, pays interest and rewards you with cash back on debit card purchases. Plus, get reimbursed for out-of-network ATM fees up to $15 per statement cycle.
Fees
No monthly service fee
APY
0.01%
Min Opening
$10
Pros
- You can get reimbursed for out-of-network ATM fees up to $15 per statement cycle
- There is only a $10 minimum opening deposit requirement
- Earn APY on every dollar for balances up to $1,000,000
Cons
- You cannot apply for this account if you already have a Salem Five checking account
Why We Like Salem Five Direct
Salem Five Direct’s checking account is strongest as a no-fee digital spending account. The interest rate is negligible, but the ATM reimbursements, low opening deposit and debit-card cash-back feature make it more interesting than a typical bare-bones online checking account
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Salem Five Direct Savings Accounts
Savings is still the main reason to consider Salem Five Direct. The live GOBankingRates review highlights the eOne Savings account as the brand’s core product, and the bank’s current rate page shows it now earns 3.51% APY on balances from $0.01 to $1,000,000. The account also keeps things simple with no monthly maintenance fee, no minimum balance requirement and a low $10 opening deposit.
Here are some key points to know:
- Strong yield: eOne Savings currently earns 3.51% APY on balances up to $1 million.
- Easy to open: only $10 is needed to get started.
- No monthly fee: the account does not charge a maintenance fee.
- Withdrawal limits still matter: the review notes a $10 fee for making more than six withdrawals or transfers during a statement cycle.
Best For
Online Banks
High-Yield Savings Accounts
Mobile App
No Fees
Great APYs
Earn on Your Balance
The Salem Five Direct eOne Savings account offers a high APY with no minimum balance requirement. Open with just $10 and enjoy no monthly fees.
Fees
No monthly service fee
APY
Min Opening
$10
Pros
- No monthly service fee
- No minimum balance requirement
- Up to $15 per statement cycle in out-of-network ATM fee reimbursements
- $0.05 cash back on eligible debit card purchases processed as credit
- Low $10 opening deposit
Cons
- Very low APY
- Eligibility is limited if you already have a Salem Five checking account
- An online-only format may not work for customers who want branches
Why We Like Salem Five Direct
Salem Five Direct’s checking account is strongest as a no-fee digital spending account. The interest rate is negligible, but the ATM reimbursements, low opening deposit and debit-card cash-back feature make it more interesting than a typical bare-bones online checking account.
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Salem Five Direct CDs
Salem Five Direct offers both Special CDs and Regular CDs, and the difference matters. The bank’s current rates page shows that several Special CDs pay 3.50% APY, but those promotional offers require a $10,000 minimum balance. Regular CDs are available with lower minimums, often $500, but many of those rates are much lower depending on the term. That means Salem Five Direct’s CD lineup can look either fairly competitive or fairly average depending on which product you qualify for.
Here are some key points to know:
- Promotional Special CDs: several terms, including 12, 15, 18 and 24 months, currently pay 3.50% APY with a $10,000 minimum.
- Regular CDs have lower entry points: many regular CDs require only $500 or $2,500, depending on term.
- Regular CD rates vary a lot: for example, the 6-month and 12-month regular CDs are at 2.76% APY, while some longer terms are far lower.
- Early withdrawal penalties apply: Salem Five Direct notes that a penalty will be imposed for premature withdrawal.
Best For
Online Banks
High-Yield Savings Accounts
Mobile App
No Fees
Great APYs
High APYs on Short-Term CDs
Salem Five Direct CDs offer competitive rates with terms ranging from 6 to 12 months. While the minimum deposit of $10,000 may be higher than most banks, the attractive APYs make them a great option for those looking to earn a solid return on their savings.
Fees
Early withdrawal penalty applies
APY
Up to 3.50% on Special CDs; Regular CDs currently range from 0.05% to 2.76% depending on term
Min Opening
$10,000 for Special CDs; $500 or $2,500 on many Regular CDs, depending on term
Pros
- Promotional CD rates are meaningfully higher than the savings account on some terms
- Multiple term options
- Regular CDs can open with as little as $500 on some terms
- FDIC-insured deposits
Cons
- Best rates require a $10,000 minimum balance
- Regular CD rates are uneven and can be much lower than the specials
- Early withdrawal penalties apply
Why We Like Salem Five Direct
Salem Five Direct’s CDs can be worthwhile, but they are not equally attractive across the board. The promotional Special CDs are the clear standouts, while the regular CD lineup is more mixed, so this is one of those banks where it pays to compare the exact term and minimum before opening an account.
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Banking ExperienceÂ
Salem Five Direct has no branches — although its parent, Salem Five, has over 30 branches in Massachusetts. You can do all your banking online, on the mobile app and at ATMs.
Customers use the same Salem Five Banking mobile app as customers of the brick-and-mortar banks. The app has a rating of 4.5 out of 5 stars on Google Play and 4.7 out of 5 stars on the App Store.Â
You can move money between your Salem Five Direct accounts on the app and transfer money to and from accounts at outside banks.Â
Fees and Account Access
Salem Five Direct keeps its fee structure simple.
- No monthly maintenance fees
- No minimum opening deposit for savings
- No branch access; all banking is handled online
- Transfers are completed electronically
This structure works well for users comfortable managing money digitally.
Customer Service
Despite the reasonable fees, Salem Five’s customer service reviews are mixed. Although customers appreciate Salem Five’s high-yield savings account rates, some report low deposit limits and slow response times from representatives.
Comparable Online Bank Options
If you’re looking for a new bank, it’s important to compare your options to find the right fit. Think about how you will use your bank and which features matter most. Then, compare the available options to choose the best option.
Here are some comparable banks that are worth considering.
SELECTED BANK
MOST COMPARABLE
MOST COMPARABLE
Fees
Fees
Fees
No monthly service fee
$0 for Free Checking, $10 for Interest Checking
$0 to $25
APY
APY
APY
0.01%
0.00% for Free Checking, 0.5% for Interest Checking
Min Opening
Min Opening
Min Opening
$10
$25 for Free Checking, $100 for Interest Checking
$0
SELECTED BANK
MOST COMPARABLE
MOST COMPARABLE
Fees
Fees
Fees
No monthly service fee
No monthly service fee
$0 to $4.99
APY
APY
APY
–
Min Opening
Min Opening
Min Opening
$10
$25
$0
SELECTED BANK
MOST COMPARABLE
MOST COMPARABLE
Fees
Fees
Fees
Early withdrawal penalty applies
Early withdrawal penalties may apply
No monthly service fee
APY
APY
APY
Up to 3.50% on Special CDs; Regular CDs currently range from 0.05% to 2.76% depending on term
3.14% to 3.76%, depending on term
–
Min Opening
Min Opening
Min Opening
$10,000 for Special CDs; $500 or $2,500 on many Regular CDs, depending on term
$1,000
$1,000- $25,000
Salem Five Direct vs. First Internet Bank
First Internet Bank is also an online-only bank and has been since it opened in 1999. In addition to deposit products, First Internet Bank offers loans, mortgages, banking products and business services.Â
Its Money Market Savings account pays APY for balances less than $1 million, and there’s a $5 monthly maintenance fee. It also has two checking accounts: a Free Checking account with no monthly fee but no interest, and an Interest Checking account that pays APY with a $10 monthly fee unless you maintain a $500 average daily balance.
Salem Five Direct vs. Bank5 Connect
Bank5 Connect also offers only deposit products. Its Connect Savings account pays just APY. However, its High-Interest Checking account pays APY if you maintain a $100 balance. Like Salem Five Direct, Bank5 Connect offers free ATMs nationwide and reimburses up to $15 per statement cycle for the ATM fees charged by other banks.
Salem Five Direct vs. Citizens Bank
Citizens Bank has multiple account types, products and services with many accounts having no minimum requirement to open. It is also easy to avoid most monthly account fees.
Safety and FDIC Insurance
Although Salem Five Direct operates online, deposits are held by Salem Five Bank.
- Funds are FDIC-insured up to standard limits
- Accounts benefit from the stability of a long-established regional bank
Who Salem Five Direct Is Best For
Best Fit
- Savers who want higher interest than traditional branch banks
- Digital-first users comfortable with online banking
- Emergency funds or short-term savings goals
Less Ideal
- Customers who want branch access
- Savers chasing the absolute highest APY available
- People who prefer in-person customer service
Overall Experience
Salem Five Direct delivers a clean, straightforward online savings experience backed by a traditional bank. While it doesn’t always offer the top rate in the market, it balances competitive yields with simplicity, security and brand stability.
Final Take to GO
Salem Five Direct is a solid option for savers who want better rates than brick-and-mortar banks without the complexity of more aggressive online platforms. Its fee-free structure, FDIC insurance and backing from Salem Five Bank make it a reliable choice for cash savings.
For savers who prioritize convenience and stability over chasing the highest possible yield, Salem Five Direct can fit well into a broader savings strategy.
Salem Five Direct FAQ
Here are the answers to some common questions about Salem Five Direct:- Is Salem Five Direct FDIC-insured?
- Yes. Deposits are insured by the FDIC through Salem Five Bank, up to applicable limits.
- Does Salem Five Direct offer a checking account?
- No. Salem Five Direct focuses on savings and CDs, not everyday checking.
- Is Salem Five Direct a separate bank?
- No. It is an online savings brand operated by Salem Five Bank.
- Are Salem Five Direct rates higher than Salem Five Bank branch rates?
- In many cases, yes. Salem Five Direct is designed to offer more competitive online savings and CD rates.
- Who should consider a different option?
- Savers who want branch access or who are focused on finding the absolute highest APY available may prefer another setup.
Daria Uhlig, Taylor Milam-Samuel and Karen Doyle contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of March 31, 2026.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
