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.)
|4.65%||$25k||$250k||Merrick Bank||12 Month CD|
|4.60%||$25k||$250k||Merrick Bank||60 Month CD|
With the 12-month adding 47 bps and the 60-month adding 45 bps last week, the 12-month/60-month CD yield curve continues to look more like a flat line than a rising one.
The remaining CDs in Merrick Bank’s product line offer competitive rates and will be part of this week’s CD Rates Summary.
The following comes from the comprehensive CD Terms and Conditions document.
Merrick Bank offers accounts,
in the name of one person, or joint accounts in the names of more than one person with rights of survivorship or payable-on-death features as specified by Utah law.
The rate lock policy can sometimes be a deal maker or breaker. CSR stated there is a 15-day window in which to fund a CD and the rate is locked during that time frame.
The initial funding of the Account must be made via Automated Clearing House (ACH) transfer, and must be made in U.S. Dollars from an account owned by the Account owner(s).
We do not accept cash, checks, money orders, wire transfers or international wire transfers for deposit.
An important feature for many DA readers is the ability to set up monthly interest payments from a CD. Good news – Merrick Bank allows interest withdrawals via ACH:
Monthly Crediting. Interest is credited to the Account on a monthly basis on approximately the same date each month as the date on which the Account was opened. After the Account is opened you may request that we send you interest monthly via ACH.
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
The possibility of an early closure being denied is still in effect. While the “no partial withdrawals” policy has not changed, the amount of the penalty is not as harsh as it was a year ago.
There is a 10-day grace period before a CD is automatically renewed, but 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.
In my opinion, 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.”
Accessing maturing funds is relatively simple and straightforward.
You may link the Account to a deposit account you have with another bank. You can do this online when you establish the Account with us or anytime during the life of the Account. Any account you link to the Account must be with a U.S. financial institution. When returning funds to you after the Maturity Date or for any other reason, the funds will be returned via ACH to the funding account you originally used to fund the Account.
Headquartered in South Jordan, Utah (18 miles south of Salt Lake City), Merrick Bank offers its product line nationwide through an online application.
According to the CD Terms and Conditions document, account owners must meet all of the following conditions:
Merrick Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 8.60% (excellent), based on June 30, 2022 data. In the past year, Merrick Bank has increased its total non-brokered deposits by $135.78 million, an excellent annual growth rate of 9.63%. Please refer to our financial overview of Merrick Bank (FDIC Certificate # 34519) for more details.
Merrick Bank is currently the 13th largest bank in Utah, with assets in excess of $4.8 billion and more than 218,000 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 12-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, only one bank has a higher rate than currently offered on the Merrick Bank 12-month CD. The following table compares the 12-month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
|APY||CD Term (Early Withdrawal Penalty)||Credit Union/Bank|
|4.63%||1-Year CD, $500 min (EWP=180 days)||KS StateBank|
|4.60%||12-Month CD, $25k min (EWP=180 days)||Merrick Bank|
|4.50%||1-Year Bread Savings CD, $1.5k min (EWP=180 days)||Bread Financial|
|4.50%||12-23 Month CD, $25k min (EWP=180 days)||Department of Commerce Federal Credit Union|
|4.34%||12-Month CD, $500 min (EWP=90 days)||Pelican State Credit Union|
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.
|APY||CD Term (Early Withdrawal Penalty)||Credit Union/Bank|
|4.97%||60-Month CD, $500 min (EWP=270 days)||Pelican State Credit Union|
|4.80%||60-84 Month CD, $25k min (EWP=180 days)||Department of Commerce Federal Credit Union|
|4.75%||60-Month CD, $25k min (EWP=270 days)||Merrick Bank|
|4.75%||5-Year Bread Savings CD, $1.5k min (EWP=365 days)||Bread Financial|
|4.70%||12-23 Month CD, $500 min (EWP=180 days)||Department of Commerce Federal Credit Union|
The above information and rates are accurate as of 11/21/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD rates table page.