Salem Five Direct CD Rates Remain Competitive

Review Salem Five Direct CD rates and ramp up your savings.

Salem Five Direct is an online division of Salem Five Bank, which has been serving the greater Boston area for more than 160 years. Like most banks, Salem Five Direct offers certificates of deposit among its lineup of products. One advantage of CDs is that they offer higher interest rates than most standard savings accounts. You don’t need to live in the Boston area to take advantage of Salem Five Direct’s competitive CD rates — you can access them anywhere by opening an online CD account.

Keep reading to learn more about Salem Five Direct CD rates and see if the products are right for you. This review will cover the following:

More from Your Money

Salem Five Direct CD Overview

Salem Five Direct offers a high-yield CD with three term options. All CDs come with the protection of FDIC insurance and no monthly fees. Here’s a quick look:

Salem Five Direct CDs at a Glance
Type Terms Minimum Deposit Rate
High-Yield Certificate of Deposit 12 months $10,000 0.50% annual percentage yield
High-Yield Certificate of Deposit 18 months $10,000 0.50% APY
High-Yield Certificate of Deposit 36 months $10,000 0.75% APY

Learn More: Investing In Certificates of Deposit: The Ultimate Guide

Who Are Salem Five Direct CDs Best For?

Salem Five Direct’s CDs are best for people who can put $10,000 or more into an account without needing access to it for at least a year. Unlike other banks that restrict the amount of money you can deposit online, Salem Five Direct accepts large deposits from customers when they open their accounts.


  • Competitive interest rates on CDs
  • FDIC and DIF insurance to protect your money
  • Accounts can be opened online
  • Electronic disclosures reduce paper clutter
More from Your Money


  • Minimum deposit to open a CD is $10,000
  • Limited selection of CDs
  • The bank charges a substantial penalty for early withdrawals

Who Might Want To Open a Salem Five Direct CD?

If you live in the bank’s service area in Massachusetts and New Hampshire, you can enjoy the comforts of boutique banking services along with the online services. However, the bank’s online banking system and fee-free ATM policy also make it a good option for customers who live outside the immediate service area and want the convenience of online banking. You can open a checking and savings account at the same time and manage all of your money through the online banking system on a computer or mobile device.

Who Might Want To Pass on Salem Five Direct’s CD Options?

Salem Five Direct is not the bank for you if you’re looking for investment products or a large menu of options when choosing accounts. The bank only offers a checking account, savings account and CD through its online division. You should also pass on Salem Five Direct if you don’t have at least $10,000 to deposit in a CD. You can find similar or better rates and terms at other banks that don’t require such a large opening deposit.

More from Your Money

Compare: Best 6-Month CD Rates

How To Open a Salem Five Direct CD

At Salem Five Direct you can open a CD in a few simple steps. First, you’ll need to choose the account you want and then provide personal information including your address, email and phone number. Next, review the bank’s disclosures. After that you can fund your account. The bank accepts deposits through ACH transfer, check or a transfer from an existing Salem Five Direct account. You’ll also receive instructions for accessing the bank’s online banking platform as part of your welcome packet.

Note that the bank only accepts applications from U.S. citizens and permanent residents who do not live in Puerto Rico. You will have to upload a copy of your government-issued ID when you apply for the account and agree to receive your disclosures via email.

If you would like to open a CD in the name of a trust, you have to complete the process through the mail or at a physical branch. The application is available for download from the bank’s website.

More On Salem Five Direct

More CD Rates

This article has been updated with additional reporting since its original publication.

All fees and rates are subject to change at the bank’s discretion. 

This content is not provided by Salem Five Direct. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Salem Five Direct.

Share this article:

facebook sharing button
twitter sharing button
linkedin sharing button
email sharing button

About the Author

Sean Dennison

Sean joined the GOBankingRates team in 2018, bringing with him several years of experience with both military and collegiate writing and editing experience. Sean’s first foray into writing happened when he enlisted in the Marines, with the occupational specialty of combat correspondent. He covered military affairs both in garrison and internationally when he deployed to Afghanistan. After finishing his enlistment, he completed his BA in English at UC Berkeley, eventually moving to Southern California.

Read More


See Today's Best
Banking Offers