Salem Five Direct Bank Review: High Rates and No Monthly Fees

Read this Salem Five review to learn about your banking options.

Salem Five Direct is the online division of Massachusetts’ Salem Five Bank and offers products outside of what’s available at the regular branch network. Current offerings include savings accounts, checking accounts and CDs, all of which come with the promise of higher rates and low risk.

Salem Five Direct at a Glance
Pros
  • 2.05% APY with eOne Savings account
  • No minimum balance with savings or checking accounts
  • Checking account also earns interest at a high rate
  • CDs with up to 3.00% APY
Cons
  • No physical branches
  • Only one option for savings and checking
  • No additional banking services (credit cards, loans, wealth management, etc.)
Information accurate as of Oct. 23, 2018.

Keep reading this Salem Five Direct review to find out if it’s the best online bank for you.

What You Need to Know About Salem Five Direct

Salem Five Direct offers a high-yield savings account, an interest-earning checking account, a checking and savings combo, and three certificates of deposit options. Interest rates offered by Salem Five Direct are much higher than the national averages across the board, and you don’t need a Salem Five Direct promo code to access these high rates.

Who Salem Five Direct is best for: People who want to earn higher interest rates who don’t need the full suite of services offered by a traditional brick-and-mortar bank

Best Features of Salem Five Direct

Salem Five Direct only offers a handful of products, but what makes these products stand out is the high rates they offer. The banking products offered include:

  • eOne Savings account
  • eOne Checking account
  • eOne Savings/Checking combo
  • High-yield Certificates of Deposit

eOne Savings Account

The eOne Savings account has a 2.05% APY — which is significantly higher than the national average of 0.09% APY. A $100 minimum deposit is required to open an account, but there is no minimum balance needed to maintain the account and there are no monthly fees. Other benefits of the account include free online and mobile banking, which you can access with your Salem Five Direct login, mobile deposits and text alerts.

Bank With the Best: The Best Savings Accounts of the Year

eOne Checking Account

There’s no monthly fee with the eOne Checking account, which allows you to earn interest at a 0.25% APY rate. For comparison, the national average rate for interest checking is just 0.06% APY. You also get free ATM withdrawals, even at non-Salem Five ATMs, free online bill pay and a free first order of checks. There is no minimum balance with this checking account.

Salem Five Direct High-Yield Certificates of Deposits

Salem Five Direct offers three CD options with different terms and interest rates:

Salem Five Direct High-Yield Certificates of Deposit

TermAPYNational APY 
18 months2.30%N/A
24 months2.50%0.67%
48 months3.00%0.92%
Information accurate as of Oct. 23, 2018.

Once again, the rates offered by Salem Five Bank are much higher than the national average; however, a CD at this bank might not be an option for those who want to deposit small amounts. A minimum balance of $10,000 is required to open or maintain a CD account, and the maximum balance is $500,000.

Should You Bank With Salem Five Direct?

Salem Five Direct is an appealing option for people seeking to earn high returns on their deposits in checking, savings and CD accounts. However, it might not be the best option for those who want to be able to speak to a representative in person, or who want access to a wider array of banking products outside of just checking and savings. Additionally, the minimum CD deposit is high.

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