Banking » Reviews » Merrick Bank CD Rates, February 2024
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Merrick Bank CD Rates, June 2024

Merrick Bank CDs offers highly competitive rates and terms between 3 months to 5 years. However, the $25,000 minimum deposit is very high
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: June 3, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: June 3, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

Merrick Bank CDs

APY Range

4.20% – 5.40%

Minimum Deposit

$25,000

Terms

3 months – 5 years

Our Rating

4.3
4.3/5

Merrick Bank CDs

APY Range

4.20% – 5.40%

Minimum Deposit

$25,000

Terms

3 months – 5 years

Our Rating

4.3
4.3/5

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
5.40%
6 Months
5.40%
9 Months
5.35%
12 Months
5.20%
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% – 5.10%
$500
First Internet Bank
4.14% – 5.26%
$1,000
Barclays Bank
3.50% – 5.00%
$0
PNC Bank
5.05%
$1
Quontic Bank
4.30% – 5.05%
$500
PenFed Credit Union
2.00% – 4.35%
$1,000
Alliant Credit Union
5.08%-5.20%
$1,000
Sallie Mae
5.00% – 5.10%
$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
3.75% – 4.30%
$2,500
CIT Bank
0.30% – 3.50%
$1,000
Ally Bank
3.00% – 4.50%
$0
Citi Bank
0.05% – 4.75%
$500
Connexus Credit Union
3.51% – 4.85%
$5,000
Merrick Bank
4.20% – 5.40%
$25,000
Fidelity
4.65% – 5.40%
$1,000
Charles Schwab
5.35% – 5.51%
$1,000
Vanguard
4.90% – 5.50%
$1,000
BMO Harris
0.05% – 4.50%
$1,000
Wells Fargo
4.25%- 4.75%
$2,500
Synchrony Bank
UP TO 5.10 %
$0
Citizen Bank
2.75% – 5.25%
$1,000
TD Bank
1.00% – 5.00%
$250
Navy Federal
4.70%
$1,000
LendingClub
4.00% – 5.15%
$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

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.

Merrick Bank does not have any specific promotions, however, it does promote its highest APY CD, which is currently the 12 month CD.

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.

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.

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.

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:

  • 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.

  • 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.

  • 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.

  • 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.

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Picture of Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
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