By  Posted on Thu Jan 13, 2011

Salem Five Bank: New Special CD and IRA CD Rates

 

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 Bank: New Special CD and IRA CD RatesSalem 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

CD Specials Minimum balance to obtain APY APY (as of 1/13/11)
14 Month Special CD $10,000 1.35%
24 Month Special CD $10,000 1.75%
60 Month Special CD $10,000 2.75%
14 Month Special IRA CD $2,000 1.35%
24 Month Special IRA CD $2,000 1.75%
60 Month Special IRA CD $2,000 2.75%

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:

CD Term Bank Minimum to open APY (as of 1/13/11)
14 months Bank of Internet $1,000 1.41%
24 months Bank of Internet $1,000 1.60%
60 months EverBank $1,500 2.61%

Here are some of the IRA CD rates offered at other banks:

CD Term Bank Minimum to open APY (as of 1/13/11)
12 months Discover Bank $2,500 1.30%
24 months OneWest Bank $1,000 1.60%
60 months Nationwide Bank $500 2.45%

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.

To obtain more information or open an account, click here.

For more CD rates available, visit our CD rates and IRA CD rates pages.

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  • Madeline Berube

    I am interested in a 5 year IRA  Please call me at 9787749114    Madeline Berube  I can not open the sign in to get the application

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