Merrick Bank CDs
APY Range
Minimum Deposit
Terms
Our Rating
Merrick Bank CDs
APY Range
Minimum Deposit
Terms
Our Rating
Merrick Bank CD Rates
Merrick Bank offers competitive interest rates on its CDs, which are generally higher than most online banks and credit unions.
Naturally, the APY is determined by your choice of CD term. Currently, the Merrick Bank 12 month CD offers the highest rates and is considered one of the best options for 1 year CD, but a slightly lower rate is available for 9, 18 and 24 month CDs. As is typical with most financial institutions, the three month CD has the lowest rate.
CD Term | APY |
|---|---|
3 Months | 5.25% |
6 Months | 5.25% |
9 Months | 5.15% |
12 Months | 5.00% |
18 Months | 4.75% |
24 Months | 4.65% |
36 Months | 4.35% |
48 Months | 4.20% |
60 Months | 4.25% |
How Merrick Bank CDs Work
Merrick Bank offers one type of CD, which is a standard fixed term CD. You can select from a variety of terms from three months to five years, locking in your rate for the duration of the CD term. However, to access these products, you’ll need to deposit at least $25,000 in one transaction.
Since Merrick Bank is an online financial institution, you’ll need to initiate a transfer from an external bank account to open your account. This may create a barrier for entry for many potential customers.
Merrick Bank also has some hefty early withdrawal penalties if you need access to some or all of your funds before your CD matures. The penalty is calculated according to the original term of your CD.
- If your CD has a term of less than one year, the early withdrawal penalty is 90 days of interest.
- For CD terms of one to four years, the penalty increases to 180 days and it further increases to 270 days of interest for CD terms of four years or longer.
However, interest is credited to your CD account on a monthly basis and you can arrange to withdraw the interest payments monthly via an ACH transfer. You’ll need to speak to a Merrick Bank representative to opt for this as the standard practice is for the interest to be simply credited to your CD account, compounding for greater returns.
CD Term | Early Withdrawal Penalty |
|---|---|
3 Months | 90 days of interest |
6 Months | 90 days of interest |
9 Months | 90 days of interest |
12 Months | 180 days of interest |
18 Months | 180 days of interest |
24 Months | 180 days of interest |
36 Months | 180 days of interest |
48 Months | 270 days of interest |
60 Months | 270 days of interest |
Overall, CD early withdrawal penalties of other banks are usually lower than Merrick bank.
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Are Merrick Bank CD Rates Competitive Compared to Other Banks?
Merrick Bank CD rates are highly competitive, particularly when compared to traditional banks. With the typical traditional bank, you are likely to find the CD rates are below the national average, whereas the Merrick Bank rates are several times higher than the national average.
When compared to other online banks, the Merrick Bank CD rates stand up favorably. In fact, Merrick Bank offers some of the highest CD rates on the market when it comes to 6 months CDs and 24 months. However, this does come with the caveat that you need to deposit at least $25,000. Additionally, since Merrick Bank does not have checking or savings accounts, you’ll need to transfer the funds from an external bank account, which may cause some delays and depending on your transfer method, you may incur fees from your current bank.
The reason for this is likely that Merrick Bank is a more specialized financial institution. As we just touched upon, Merrick Bank does not have savings or checking accounts and limited other banking products. Merrick Bank focuses on credit cards, personal loans and recreational loans, which reduces its overhead costs. This is passed on to Merrick Bank customers who can access higher CD rates.
CD APY Range | Minimum Deposit | |
|---|---|---|
Marcus | 3.90% – 5.15% | $500 |
First Internet Bank | 4.14% – 5.26% | $1,000 |
Barclays Bank | 0.10% – 4.85% | $0 |
PNC Bank | 5.15% | $1 |
Quontic Bank | 4.30% – 5.05% | $500 |
PenFed Credit Union | 2.00% – 4.35% | $1,000 |
Alliant Credit Union | 5.10% – 4.98% | $1,000 |
Sallie Mae | 5.10% – 5.20% | $2,500 |
Bread Financial | 4.25% – 4.75% | $1,500 |
Capital One | 3.90% – 5.00% | $0 |
Chase Bank | 3.00% – 4.75% | $1,000 |
Discover Bank | 2.00% – 5.10% | $2,500 |
CIT Bank | 0.30% – 3.50% | $1,000 |
Ally Bank | 3.00% – 4.85% | $0 |
Citi Bank | 0.05% – 4.65% | $500 |
Connexus Credit Union | 3.51% – 4.85% | $5,000 |
Merrick Bank | 4.20 – 5.25% | $25,000 |
Fidelity | 4.20% – 5.30% | $1,000 |
Charles Schwab | 5.30% – 4.90% | $1,000 |
Vanguard | 4.45% – 5.25% | $1,000 |
BMO Harris | 0.05% – 4.50% | $1,000 |
Wells Fargo | 4.24%- 4.75% | $2,500 |
Synchrony Bank | UP TO 5.15 % | $0 |
Citizen Bank | 2.75% – 5.25% | $1,000 |
TD Bank | 1.00% – 5.00% | $250 |
Navy Federal | 4.85% | $1,000 |
LendingClub | 4.00% – 5.20% | $2,500 |
Merrick Bank CD vs Savings Rates
Unfortunately, Merrick Bank does not even offer a basic savings account, so there is no way to make a comparison. Instead, you would need to look at the savings account offerings from competing banks to see how Merrick Bank CDs compare.
Of course, you’ll need to consider if the savings account has any monthly maintenance fees, minimum balance requirements or other restrictions. In most cases, you’ll find the inconvenience of tying up your money for a fixed term is rewarded with a higher rate than you would get with the typical savings account.
About Merrick Bank
Merrick Bank is an online bank that is a subsidiary of Cardworks, a New York-based financial services firm. Merrick Bank has been operating since 1997, focusing on credit cards and loans. However, it has included CDs in its product lineup.
While Merrick CDs have a high minimum deposit requirement, other Merrick products are designed to help those with a less-than-ideal credit score. In fact, Merrick Bank is one of the largest issuers of credit cards in the U.S.
Merrick Bank has a solid reputation for delivering decent customer service, which is reflected in its excellent Trustpilot score. Here's our Merrick bank review of 2024.
FAQs
Does Merrick Bank Offer No Penalty CD Rates?
No, Merrick Bank CDs all have a fixed term and an early withdrawal fee applies if you need to access your funds before the maturity date.
Does Merrick Bank offer promotions on CDs?
Merrick Bank does not have any specific promotions, however, it does promote its highest APY CD, which is currently the 12 month CD.
Do Merrick Bank CDs come with a grace period?
Yes, Merrick Bank CDs have a 10 day grace period. After your CD maturity date, you’ll have 10 days to withdraw some or all of your funds or add more cash to your account without incurring any penalties.
If you take no action during this 10 day period, your CD will roll over for another term, according to the original term. So, if you have a one year CD, it will roll over for another year.
How Merrick Bank CDs interest are calculated?
Interest is accumulated and added to your account each month. You can opt to have the interest payments transferred to your bank account via ACH.
How does the Merrick Bank early withdrawal penalty work?
The early withdrawal penalty is calculated according to the original term of your CD, not the amount of time remaining. So, if you have a longer term CD, you’ll incur a larger penalty compared to a shorter term CD.
The penalty for CDs with a term of less than one year is 90 days interest, 180 days of interest for terms of one to four years and 270 days of interest if your CD has a term of over four years.
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How We Rate Certificates of Deposits: Our Methodology
The Smart Investor team has thoroughly examined certificate of deposit (CD) offerings from various banks, considering multiple factors to provide a comprehensive evaluation. Here's how we rated them across four key categories:
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CD Rates (50%): We meticulously analyzed the interest rates offered by each bank on their certificate of deposit (CD) products. Higher ratings were awarded to banks offering competitive rates that provide maximum returns for customers' investments. Factors such as the yield curve, current market conditions, and consistency of rates were considered to assess the attractiveness of each bank's CD rates.
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CD Features (30%): This category evaluated the features associated with each bank's certificate of deposit offerings. Factors considered include the variety of terms available, early withdrawal penalties, minimum deposit requirements, and any additional features or benefits. Higher ratings were given to banks offering a diverse range of CD terms, reasonable early withdrawal fees, and flexible options to meet customers' investment needs.
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Customer Experience (10%): A positive customer experience is paramount, even when investing in CDs. We assessed each bank's performance in this area, considering factors such as the ease of opening a CD account, the responsiveness of customer service, and overall user satisfaction. Higher ratings were assigned to banks with efficient account opening processes, helpful customer support, and a track record of satisfying customers.
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Bank Reputation (10%): The reputation of a bank is a critical consideration when investing in CDs. We evaluated each bank's reputation based on factors such as financial stability, regulatory compliance, and public perception. Higher ratings were given to banks with a solid reputation for reliability and trustworthiness, ensuring customers' investments are safe and secure.
By considering these categories and assigning appropriate weights to each, our review aims to provide valuable insights to help individuals make informed decisions when investing in certificate of deposits.
