Salem Five Bank updated its CD specials with its 24-Month CD now paying 1.75% APY (up from 1.50% APY) while its other special CD rates haven’t changed but are still paying competitive earnings.
Salem Five’s special CD rates are offered on terms of 14, 24, and 60 months.
The 14-Month CD at 1.35% APY isn’t as appealing as the 24-Month (2-Year) and 60-Month (5-Year) CDs, which are paying 1.75% APY and 2.75% APY – both topping the CD rates of the banks currently tracked on MyBankTracker.com.
The rates are similar whether you opt for a regular CD or an IRA CD. The drawback to such great rates is the high minimum deposit required for a regular CD, but can be avoided if you choose an IRA CD.
Salem Five Bank Special CD Rates
Salem Five Bank is headquartered in Massachusetts with 22 branch locations in the greater Boston metropolitan area but the CD rate specials are available to customers nationwide through the Internet.
Compared to CD Rates at Other Banks
Here are some of the CD rates offered at other banks:
Here are some of the IRA CD rates offered at other banks:
Hefty Penalties and Risk-Free Deposit Insurance
One thing that makes Salem Five’s CDs less appealing is the early withdrawal penalty. If you withdraw your fund before maturity on the 60-Month CD, it’ll cost you 15 months worth of interest; for 14-Month and 24-Month CDs, it’ll be 6 months of interest.
Because Salem Five is a chartered savings bank in Massachusetts, the bank’s deposits are insured by both the FDIC and DIF (Deposit Insurance Fund). If a member DIF bank should fail, it will cover deposits in excess of the FDIC insurance limits. Customers can feel safer in putting a large amount of money into a CD with such extensive insurance coverage.
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