Merrick Bank Long-Term CDs Are Now Near Rate-Leaders

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Update 10/9/23: Merrick Bank increased rates on several of its CDs. The 48-month CD rate increased to 4.90% APY and its 60-month CD rate increased to 4.85% APY. For a full listing of up-to-date rates, please refer to DA's Merrick Bank CD rates section. This post was first published on 9/23/23.

Deal Summary: CDs – 48-month (4.80% APY) and 60-month (4.80% APY) $25k minimum/$250k maximum deposit.

Availability: Nationwide (internet bank)

Utah-based Merrick Bank recently raised the rates on about half of its CD product line. Following an increase of 20 bps, the 48-month CD and 60-month CD both earn 4.80% APY and are the most competitive CDs offered by Merrick Bank. While not having great rates, the 12-month CD (5.67% APY) and 18-month CD (5.60% APY) are nonetheless noteworthy. The minimum opening deposit for any Merrick Bank CD is $25k, with a $250k balance cap. (Any interest accrued and paid into the CD is exempt from the $250k balance cap.)

APYMINMAXINSTITUTIONPRODUCTDETAILS
4.95%$25k$250kMerrick Bank12 Month CD
4.65%$25k$250kMerrick Bank18 Month CD
4.10%$25k$250kMerrick Bank48 Month CD
4.05%$25k$250kMerrick Bank60 Month CD
Rates as of April 12, 2024.

When I last wrote about Merrick Bank CDs ten months ago, I described the 12-month/60-month CD yield curve as looking like a flat line. With an 87 bps difference between the 12-month and 60-month CDs, the yield curve is currently decisively inverted.

Early Withdrawal Penalty

As stated in the CD Terms and Conditions (page 6), the Early Withdrawal Penalty (emphasis is mine) reads as follows:

Subject to applicable law, we are not required to give our consent to any withdrawal from the Account before the Maturity Date. If we consent to a proposed withdrawal before the Maturity Date, you must withdraw the entire balance of the Account and we will charge the early withdrawal penalty and deduct it from the Account balance. Any interest accrued but not yet credited will be applied as a credit to the Account balance.

The early withdrawal penalty is the dollar amount equal to the number of day’s interest, based on the Term of the Account below, the Account balance, and the interest rate in effect on the Account at the time of withdrawal.

  • Terms of 364 days or less – 90 days interest
  • Terms between 365 and 1,459 days – 180 days interest
  • Terms of 1,460 days or longer – 270 days interest

Bottom line, only an early closure is possible, but not guaranteed. While the no partial withdrawals policy has not changed, the Early Withdrawal Penalty is not as harsh as it was about two years ago.

Possibility of Being Called

The Closing the Account section of the CD Terms and Conditions document also includes this statement:

We may close the Account at any time, for any reason and without advance notice.

To my eyes, that quote reads like the definition of a callable CD, but CSR stated it is “highly unlikely” the Bank would exercise their right to do so. While that’s mildly reassuring, there’s always a possibility a CD could become callable. As one of my colleague said, “It’s not callable until it is.”

Availability and Account Opening

Headquartered in South Jordan, Utah (a bedroom community of Salt Lake City), Merrick Bank offers its product line nationwide to all U.S. citizens and residetn aliens through an online application.

According to the CD Terms and Conditions document (page 2), account owners must meet all of the following conditions:

  • Be at least 18 years old,
  • Be a permanent resident of the United States,
  • Have a Social Security number,
  • Have a U.S. street address (no PO Boxes),
  • Have a U.S. bank account to initiate and receive ACH transfers, and
  • Be enrolled in NetTeller (Merrick Bank’s online banking platform.)
  • Funding and Other Details

    The following information is from the CD Terms and Conditions document and a conversation with CSR.

    • Funding* – ACH only.
    • Ownership – Individual or joint.
    • Interest – Compounded/credited monthly; interest pay outs via ACH on a monthly basis can be requested.
    • Maturing Funds – ACH back to the original funding account.
    • Beneficiaries – Unlimited with equal shares, Social Security numbers are preferred but not required.
    • Grace Period –10 business days before automatic renewal.
    • Credit Check – None for current customers, ChexSystems for new customers.

    *CSR stated there is a 15-day window in which to fund a CD and the rate is locked during that time frame.

    Bank Overview

    Merrick Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 12.54% (above average), based on March 31, 2023 data. In the past year, Merrick Bank has increased its total non-brokered deposits by $1.02 billion, an excellent annual growth rate of 67.3%. Please refer to our financial overview of Merrick Bank (FDIC Certificate # 34519) for more details.

    Merrick Bank is currently the 14th largest bank in Utah, with assets in excess of $5.8 billion and more than 205,000 customer accounts. Founded in 1997 as a wholly owned subsidiary of CardWorks, Merrick Bank is a top-20 issuer of Visa® credit cards serving nearly 3 million cardholders and having extended more than $5.3 billion in credit. While Merrick Bank specializes in non-prime consumer lending, it also provides finance options to consumers through marine and recreational vehicle dealers throughout the country.

    How the 48-month CD Compares

    When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $25k or less, two credit unions have higher rates than currently offered on the Merrick Bank 48-month CD. The following table compares the 48-month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.

    How the 60-month CD Compares

    When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $25k or less, two credit unions have higher rates than currently offered on the Merrick Bank 60-month CD. The following table compares the 60-month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.

    The above information and rates are accurate as of 9/23/2023.

    To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.

    Related Pages: Salt Lake City CD rates, 1-year CD rates, 5-year CD rates, nationwide deals, Internet banks

    Comments
    scottj
      |     |   Comment #1
    Looking to do a CD here and a couple questions? It says maturing funds will be sent to the account that funded it, I'm using a matured CD to fund and had planned on closing that account once funds are taken. Would I be able to request it go to a different account? Also I think I will take interest monthly and does that also have to go to funding account? Be a lot easier if they also offered savings account. Is this a new thing of banks just offering CD's? Was same with Finworth.
    gregk
      |     |   Comment #9
    Are you serious, scottj? Of course you can change the bank account. It’s no more than default mode by FI’s to direct funds to the originating account in cases of you not having specified otherwise.  Bet you didn’t make your dough in the Financial Industry.
    scottj
      |     |   Comment #13
    Once opened I did find it very easy to link a new account. This and Finworth are my first accounts I have opened where there is no savings and checking accounts so was just trying to make sure was same for linking. Nope never in the Finance industry and never did the College thing where they teach this inflation stuff. I go by what is happening in my life and I do way better when inflation is high. I retired at 47 with considerable savings so I don't care if people think my thinking is dumb.
    sams1985
      |     |   Comment #17
    Save yourself the headache. Send money to your brokerage account and buy a brokered CD. Leave the rest earning 5%+ in a state income tax exempt treasury only MMF.
    max100
      |     |   Comment #2
    with all this inflation going around it is not worth it to buy 60 month cd , now only cd we must buy 12 or 24 month cd.
    scottj
      |     |   Comment #3
    I love inflation, a year and a half ago I was making .5% now I'm averaging almost 5%, that is 10 times the income and more than enough to pay higher prices on groceries and gas. Inflation only affects the money I spend, has no effect on the money I'm putting in a 4 year 4.80% CD, will only matter when I spend that money. I have enough short term CDs, now its time to lock in some longer terms
    LovinSomeCDs
      |     |   Comment #4
    https://www.depositaccounts.com/community/ask/51348-inflation-scary-needed-nuisance-5.html
    P_D
      |     |   Comment #5
    "Inflation only affects the money I spend, has no effect on the money I'm putting in a 4 year 4.80% CD, will only matter when I spend that money."

    Curious point that always surprises me when I see it. Assuming no numismatic value, does money have some other value other than for the purpose of being spent? If not, why do you not care about the effect of inflation on that money in the bank? Inflation only affects the money if you spend it?  What else do you plan to do with it?  It's as if you have no awareness of the inflation induced devaluation of the money as it sits in the bank between the time you deposit it and the time you spend it. What is the point of saving it if not for the purpose of it being spent in the future and why dismiss the interim effect of inflation to that end.
    gregk
      |     |   Comment #6
    It's like a big drop in the Stock Market, PD. If I don't sell my holdings any losses are "unrealized", and when the Market springs back, those losses will be wiped off the books and replaced by new gains.

    Inflation may be high now and eroding the current buying power of my money in the bank. But inflation can be followed by deflation, and should that occur my cash savings gain back whatever value they might have precedingly lost. No harm, - things are as good (or better) than before.
    P_D
      |     |   Comment #8
    "It's like a big drop in the Stock Market, PD. If I don't sell my holdings any losses are "unrealized", and when the Market springs back, those losses will be wiped off the books and replaced by new gains."

    That's also a misnomer. Whether realized or unrealized the buying power of your investment has been reduced as of now. Speculation about what may or may not happen in the future does not change that fact whether it is cash deposits being eroded by inflation or capital assets that lose market value. There are many stocks that fall in value and never recover. It took 13 years for the markets to reach their former level after the 1929 crash. And losses to inflation are almost never recovered since deflation is so (thankfully) rare. The chances that you will ever recover your losses from inflation over these past two years are next to none.
    scottj
      |     |   Comment #7
    I do spend a good amount a year, recently bought a new Lamborghini for $340k in cash. So I am enjoying spending my money that I have saved over the last 35 years. 2 years ago I made less than $25k in interest, this year will be around $120k and will be higher next year. More than enough to offset the higher prices I'm paying on basic essential items. Also a lot of the inflation is on debt, I have none. I will continue to say inflation effects people differently.
    RichReg
      |     |   Comment #10
    If exotic cars are what you’re spending on, surely you’re not disregarding inflation because of higher interest income. It’s probably because it was never going to affect you very much in the first place.
    scottj
      |     |   Comment #14
    Like I said, inflation can effect people differently.
    decades
      |     |   Comment #11
    Going to drive the Lambo or is it for investment? I know a guy who invests most of his money in Lamborghini's. Keeps them in a climate-controlled garage. Dude does not believe in bank accounts, stock market or credit cards of any kind. Showed up in a Mercedes Benz van like they have on American pickers towing a trailer. Bought my parents old car for 9k all fresh new $100.00 bills. Never even took the car for a test drive, only had about 14k miles on it.
    P_D
      |     |   Comment #12
    Using cash is considered a crime these days. The guy will probably end up getting a visit from men in black suits. Big brother is watching. Biden and the Democrats are pushing for a government controlled digital currency to replace cash so that the government can monitor, track, know and control everything about every penny that every citizen is spending their money on in real time. They got really excited about it after Canada used their banking system to freeze the bank accounts of truckers who protested vaccine mandates to shut down their protest. Democrats really dug that authoritarianism and are drooling to get themselves a piece of that Maoism here in the states.
    scottj
      |     |   Comment #16
    Was not cash, was a check. They can visit me anytime they like, I even take more than $10k in cash out of banks at one time which people keep telling me I shouldnt do. I have always done everything right and can show where all my income came from since most of it was W2, Dividends and Bank Interest which is all shown on my yearly taxes. Would actually be fun to have them visit me.
    NostraD
      |     |   Comment #18
    I've enjoyed all of your posts in this thread, and a few of them (like the one above) I could've written myself. As the saying goes... "Great Minds Think Alike"! --- It appears we are "Kindred Spirits", ScottJ.
    gregk
      |     |   Comment #19
    Got a Lamborghini?
    scottj
      |     |   Comment #15
    I buy my cars to drive them and know will lose money. But I was shocked I actually made almost $30k when I got rid of my last one because of all the craziness in the car market we were seeing. And no, I didn't lose it on the other end because I paid higher price on new one. I ordered this car almost 2 years ago when things were normal and got for less than MSRP. They wanted me to trade my car in when I placed order but I said no because I knew it would take over a year for new one. They said would not be able to give me same price they offered for it at that time. They were right, I got almost $30k more by waiting.
    Merrick Bank Hikes All CD Rates
    Deal Summary: 12-month CD, 4.60% APY, $25k minimum/$250k maximum deposit.

    Availability: Nationwide (internet bank)

    Since the beginning of the month, Utah-based Merrick Bank had two across-the-board CD rate increases. Last week’s increases of between 35 bps and 50 bps have made the 12-month and 60-month near-rate leaders. The minimum opening deposit for any Merrick Bank CD is $25k, with a $250k balance cap. (Any interest accrued and paid into the CD is exempt from the $250k balance cap.)

    With the 12-month adding 47 bps and...

    Continue Reading
    Merrick Bank 9-Month High Yield CD Rate Jumps To The Top
    Deal Summary: 9-month High Yield CD, 3.75% APY, $25k minimum/$250k maximum deposit.

    Availability: Nationwide (internet bank)

    Following a two rounds of across-the-board CD rate increases in as many weeks, the 9-month High Yield CD (3.75% APY) offered by Utah-based Merrick Bank is the new rate leader for nationally available 6-9 month CDs. Since the beginning of the month, the 9-month High Yield CD has added 65 bps.

    While not having as competitive rate as the 9-month High Yield CD, the 36-month CD (4.10% APY) offers the highest rate available on...

    Continue Reading
    Merrick Bank 12-Month CD Rate Shoots To The Top
    Deal Summary: 12-month CD, 3.60% APY, $25k minimum/$250k maximum deposit.

    Availability: Nationwide (internet bank)

    Utah-based Merrick Bank ended the week with across-the-board CD rate increases, with the 12-month CD (3.60% APY) becoming the new rate leader for nationally available 1-year CDs. Since the beginning of the month, the 12-month CD has added 125 bps in four rate increases. The minimum opening deposit for any Merrick Bank CD is $25k, with a $250k balance cap. (Any interest accrued and paid into the CD is exempt from the $250k...

    Continue Reading
    Merrick Bank Ups Short-Term CD Rates
    Deal Summary: CDs – 12-month (2.40% APY) and 18-month (2.65% APY), $25k minimum/$250k maximum deposit.

    Availability: Nationwide (internet bank)

    Merrick Bank started the week by raising the rates on its 12-month CD (2.40% APY) and 18-month CD (2.65% APY), with increases of 13 bps and 15 bps, respectively. The minimum opening deposit for any Merrick Bank CD is $25k, with a $250k balance cap. Any interest accrued and paid into the CD is exempt from the $250k balance cap.

    While Merrick Bank’s short-term CDs continue...

    Continue Reading
    Merrick Bank Nationally Available CDs Offer Top Rates
    Deal Summary: CDs – 12-month (2.27% APY), 18-month (2.50% APY), 24-month (2.87% APY), 36-month (3.05% APY), 48-month (3.15% APY), 60-month (3.25% APY), $25k minimum/$250k maximum deposit.

    Availability: Nationwide (internet bank)

    The nice thing about “DA déjà vu” is that while you think you’ve read this blog post before, I can almost guarantee the rates are higher than you remember.

    It’s only been a week since my last Merrick Bank blog post. For the second time in as many weeks, Merrick Bank CDs have experience across-the-board rate increases. All...

    Continue Reading

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