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APY GUY: Maximize Your Savings & Earnings

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Salem Five

Salem Five CD Rates – Now up to 5.00% APY!

Written by: editorial staff
Published July 28, 2023

Salem Five is a full service financial services company that got its roots in New England (Salem, to be exact) in 1855 as a savings bank.

They’re a mutually owned bank with no stockholders and are federally insured by the FDIC.

They were one of the early adopters of the internet and online banking, opening their virtual doors in 1995.

Today they offer a plethora of online banking products that are available nationwide. For the purpose of this review we will focus on Salem Five Direct’s fixed rate certificates of deposit. They offer several standard term CDs, IRA CDs and special CDs with some noteworthy APYs (annual percentage yields).

To see if these deposit accounts are right for you, continue reading about their offers below.

Salem Five Bank CD Rates + Account Details

Salem Five Bank Certificates of Deposit Suite

Salem Five Bank has three types of CDs available to customers online. All of the products are federally insured by the FDIC up to the applicable limits.

The three types of CDs offered are:

  • Regular CDs
  • IRA CDs
  • Special CDs

The minimum deposit requirements on these products range from $500 to $10,000. See below for details.

Regular CD Rates

Salem Five Bank offers ten ‘regular’ CDs with terms offered in ranges. These ranges can be as little as 3 – 6 months to as long as 5 years.

CD TermMin. DepositAPY
91 – 181 days$2,5000.05%
182 – 364 days$2,5000.05%
12 – 17 months$5000.25%
18 – 23 months$5000.25%
24 – 29 months$5000.25%
30 – 35 months$5000.35%
36 – 41 months$5000.35%
42 – 59 months$5000.50%
60 months$5000.50%
9 Month No Penalty*$10,0000.05%
APY = Annual Percentage Yield

*The 9 month no penalty CD is not available as an IRA CD.

To give the yields above some context, the current national average on a 12 month CD and a 60 month CD sit at just 1.72% APY and 1.37% APY, respectively, according to FDIC data.

If you’re looking for a higher yield when compared to the national average, you might want to check out Salem Five Bank’s special CDs (rates below).

Salem Five rotates new CD specials in and out of its deposit account suite fairly often, so you may want to bookmark this page as we do our best to update rates and products in a timely manner.

Special CD Rates

Salem Five Bank has seven CD specials at the moment. These all come with standard terms ranging from 6 months to 5 years and a higher minimum deposit requirement of $10,000.

CD TermMin. DepositAPY
6 month$10,0005.00%
9 month$10,0005.00%
12 month$10,0005.00%
18 month$10,0004.50%
24 month$10,0003.25%
30 month$10,0002.00%
36 month$10,0002.00%
48 month$10,0002.25%
60 month$10,0002.25%
APY = Annual Percentage Yield

As mentioned, the current national average for a 12 month and a 60 month CD sit at 1.72% and 1.37% APY, respectively, however, some of the best yields for 1 year CDs and 5 year CDs are now over 5.25% and 4.50% APY for the same respective terms.

If you are looking to keep certificates of deposit in your IRA, then Salem Five Bank may be a good place to go. Below are their “Retirement CD” rates. These come in the form of regular CD and “Special” CDs.

Retirement CD Rates

CD TermMin. DepositAPY
3 months$5000.05%
6 months$5000.05%
12 – 17 months$5000.25%
18 – 23 months$5000.25%
24 – 29 months$5000.25%
30 – 35 months$5000.35%
36 – 41 months$5000.35%
42 – 59 months$5000.50%
60 months$5000.50%
6 month special$2,0005.00%
9 month special$2,0005.00%
12 month special$2,0005.00%
18 month special$2,0004.50%
24 month special$2,0003.25%
30 month special$2,0002.00%
36 month special$2,0002.00%
48 month special$2,0002.25%
60 month special$2,0002.25%
APY = Annual Percentage Yield

The IRA CDs listed above are only available for individual retirement accounts.

Compounding and Crediting Interest

Salem Five Bank CDs feature monthly compounding interest. Earned interest is also credited to your account monthly. This is less competitive than most banks’ compounding schedule which generally feature daily compounding interest.

Grace Period

All CD account holders have a standard grace period of 10 days in which you may add or withdraw funds from your CD penalty free.

Salem Five will send out a maturity notice for your CD, but be sure to set your own reminders as well. If nothing is done during this 10 day period, Salem Five Bank will renew your CD with the same terms and the going rate at that time.

Please note that you will need to instruct Salem Five Bank in writing how to handle your funds on or prior to the maturity date if you do not wish to have the account renewed.

If you have a “Special CD” and do nothing during the grace period, these accounts will renew into standard term CDs.

Here’s how they will transfer:

Existing Special CDRenewed to Regular CD
12 – 17 months12 month
18 – 23 months18 month
24 – 29 months24 month
30 – 35 months30 month
36 – 41 months36 month
42 – 59 months42 month
60 months60 month

Early Withdrawal Fees

If you need funds prior to the maturity of your CD, Salem Five Bank will impose an early withdrawal fee.

Currently the penalty is equal to 4 percent of the balance withdrawn.

If the amount of the penalty exceeds the amount of earned interest that has not already been paid to you, Salem Five Bank may deduct some of the penalty from your principal.

How Do Salem Five’s CD Rates Compare?

To see how Salem Five’s CD rates compare to competitive CD rates offered by other well known banks, then take a look at the table below.

BankBest CD Rate (APY)
Apple Bank4.50%
Citizens Bank4.50%
Huntington Bank5.13%
Washington Federal5.00%
Salem Five5.00%
CD rates surveyed on July 28, 2023.

How Much Can You Earn with a Salem Five CD?

The amount of money you can make with a CD from Salem Five is going to depend on your deposit amount, the term you select and its going APY (annual percentage yield). Take a look at the table below to show hypothetical earnings on a handful of Salem Five CDs assuming a deposit size of $25,000.

CD TermAPYEarnings
6 months5.00%$617.38
12 months5.00%$1,250.00
24 months3.25%$1,651.41
60 months2.25%$2,941.94
Earnings = Sum of all interest payments through maturity.

Filed Under: CD Rates Tagged With: Salem Five

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