Merrick Bank Ups Short-Term CD Rates

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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 to ride a five-month arc of rate increases, the long-term CD rates were actually lowered about a week ago. The 48-month and 60-month CDs each lost 30 bps, with the 36-month CD losing 25 bps.

The following information 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.

A bank’s 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.

One important feature for many DA readers is the capability to set up monthly interest payments from a CD. Merrick Bank does have this capability 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 about 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.

If I were asked, I would say the 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 a reassuring response, it’s certainly not legally binding: 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.

Availability

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:

  • 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.)
  • Bank Overview

    Merrick Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 8.19% (excellent), based on March 31, 2022 data. In the past year, Merrick Bank has increased its total non-brokered deposits by $195.16 million, an excellent annual growth rate of 14.86%. 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 $4.6 billion and more than 210,000 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 18-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, no banks or credit unions have higher rates than currently offered on the Merrick Bank 18-month CD. The following table compares the 18-month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.

    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.

    The above information and rates are accurate as of 7/12/2022.

    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
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