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. 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.
Current Salem Five Direct CD Rates: August 2025
Salem Five Direct offers regular CDs and special rate CDs.
Salem Five Direct Regular CD Rates
| Term | APY | Minimum Deposit |
|---|---|---|
| 3-month | $2,500 | |
| 6-month | $2,500 | |
| 12-month | $500 | |
| 18-month | $500 | |
| 2-year | $500 | |
| 30-month | $500 | |
| 36-month | $500 | |
| 42-month | $2,500 | |
| 60-month | $500 | |
| 9-month No Penalty | $10,000 |
Salem Five Direct Special CD Rates
| Term | APY | Minimum Deposit |
|---|---|---|
| 9-month | $10,000 | |
| 12-month | $10,000 | |
| 15-month | $10,000 | |
| 18-month | $10,000 | |
| 24-month | $10,000 | |
| 30-month | $10,000 | |
| 36-month | $10,000 | |
| 48-month | $10,000 | |
| 60-month | $10,000 |
Pros and Cons of Salem Five Direct CDs
When considering a Salem Five Direct CD, it can help to consider the pros and cons:
Pros
- Competitive interest rates. Salem Five Direct CD rates are higher than the national average for some terms.
- FDIC-insured. You money is insured and protected up to $250,000.
- Convenient. CDs can be opened online.
Cons
- Early withdrawal penalties. Expect a fee when you take your funds out before the end of term.
- Not a liquid investment. You cannot easily access cash with a CD.
How Much Can You Earn With a Salem Five Direct CD?
The amount you earn from a CD depends on:
- How much you initially deposit
- How long you keep your funds locked in
- The interest rate or APY the bank pays you
Here’s an example showing estimated earnings with Salem Five Direct CDs:
| Deposit Amount | Term Length | APY | Estimated Interest Earned* |
|---|---|---|---|
| $10,000 | 1-year | $415 | |
| $500 | 1-year | $14.75 | |
| $10,000 | 2-year | $712.25 | |
| $500 | 3-year | $5.27 |
How To Open a CD With Salem Five Direct: 5 Quick Steps
At Salem Five Direct you can open a CD in a few simple steps.
- First pick the account you want.
- Provide personal information including your address, email and phone number.
- 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.
- As part of your welcome packet, you’ll receive instructions for accessing the bank’s online banking platform.
Note that the bank accepts applications only 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.
Salem Five Direct CD Rates vs. Other Banks
Salem Five Direct CD rates are quite competitive, but how do they compare to other banks? Here’s a side-by-side look:
| Bank | 1-Year CD | 5-Year CD | Minimum Deposit |
|---|---|---|---|
| Salem Five Direct | $10,000 | ||
| Ally | $0 | ||
| Discover® Bank, Member FDIC | $0 | ||
| Capital One* | $0 |
Is a Salem Five Direct CD Right for You?
You will have to analyze your personal situation to decide whether a Salem Five Direct CD is right for you.
A Salem Five Direct CD is ideal for:
- High balance investors. With some CDs requiring a $10,000 minimum deposit, these investment products are tailored to individuals who have substantial amounts of cash.
- People who prefer online services. Salem Five Direct doesn’t have physical branches.
- No need for immediate cash. CDs typically have early withdrawal penalties, so if you need cash fairly quickly, you may want to consider investing in another product.
A Salem Five Direct CD is not great for:
- In-person banking. Salem Five Direct has no physical locations, so if you prefer branch services, this financial institution likely isn’t a good fit for you.
- Low balance savers. If you don’t have substantial cash reserves, it may be too hard to meet the $10,000 minimum deposit on special CDs.
Tips To Know for Getting the Best CD Rates
- Consider relationship banking perks. Some banks offer higher APYs if you have an existing relationship with the bank or have multiple accounts.
- Compare multiple terms. Comparison shop between similar terms and different banks to find the best APY for your funds.
- Look for promotional or limited-time offers. Banks offer promotional rates. Keep your eye out for limited time offers throughout the year.
- Use a CD laddering strategy if liquidity matters. If you need cash quickly, consider a CD laddering strategy.
Salem Five Direct: FAQ
Here are the answers to some of the most frequently asked questions about Salem Five Direct CD rates and features.- What is the minimum deposit for a Salem Five Direct CD?
- Minimum deposits vary at Salem Five Direct. CDs have a minimum deposit of $500, $2,500 or $10,000.
- Do I need a Salem Five Direct account to open a CD?
- You do not need an existing account to open a CD at Salem Five Direct.
- Can I open a CD online?
- Yes, you can open a CD online at Salem Five Direct.
- What happens if I withdraw before the term ends?
- Typically you will incur a penalty if you withdraw early from your CD. Salem Five Direct has a 9-month no-penalty CD where you can withdraw early without incurring a penalty.
- Are Salem Five Direct CD rates competitive in 2025?
- Yes, a 12-month special CD offers a 3.75% APY at Salem Five Direct.
Sean Dennison contributed to the reporting for this article.
Data is accurate as of Aug. 11, 2025, and is subject to change.
*Capital One interest rates accurate as of Aug. 11, 2025. See website for all current rates.
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