Merrick Bank
Fees
Minimum Deposit
Our Rating
APY Savings
Merrick Bank is an online only bank, which has been around since 1997. It was established as a subsidiary of CardWorks, the New York based financial services company, but it is not a traditional bank.
The reason for this is that Merrick Bank has a focus on loans, credit cards and CDs, and does not offer savings, checking or money market accounts. Merrick products are also geared towards those who have a lower credit score.
Unlike many banks and financial institutions, Merrick Bank actually has a solid reputation both within the industry and from consumers. Although Merrick is based in Utah, its financial products are available in all U.S states.
- High CD Rates
- Lower Than Average Credit Card Rates
- Available Nationwide
- Focus on Lower Credit Score Customers
- Specialist in RV and Boat Financing
- No Checking or Savings Accounts
- Origination and Early Repayment Fees
- Loan Rates Not Advertised
- High CD Minimum Deposit
Is my money safe on Merrick Bank ?
Merrick Bank has FDIC insurance, which offers the same protections as you would receive with a traditional bank. You’ll have up to $250,000 of coverage should the bank fail.
Can you buy/invest in gold via Merrick Bank ?
Merrick Bank does not have an investment arm.
Is Merrick Bank worth it for Joint Accounts?
Not particularly, although you may be able to apply for a joint loan.
Does Merrick Bank offer a free checking account?
No, Merrick Bank does not have any checking accounts.
Table Of Content
Banking Services | Credit Options | ||
|---|---|---|---|
Savings Accounts | Mortgage | ||
Checking Accounts | Government Mortgage | ||
CDs | Credit Cards | ||
Money Market Account | Debit Card | ||
Investing Capabilities | Personal Loans |
Merrick Bank CDs
Merrick Bank offers a variety of CDs to appeal to most types of customers. The key features of this product include:
- Myriad of Term Options: Merrick Bank CDs offer a variety of terms from three months up to five years. This allows you to choose a term that best suits your requirements and financial circumstances.
- Minimum Balance: You’ll need $25,000 or more to open a Merrick Bank CD account. Additionally, the funds must be deposited with one single transaction.
- Impressive APYs: The Merrick Bank CD rates compare very favorably to other online bank CD products. You can earn many times the national average rate even with the shorter term CDs.
- Early Withdrawal Penalties Apply: If you need to withdraw some or all of your funds before your CD matures, an early withdrawal penalty will apply. This is calculated according to your original CD term. For terms of less than one year, the penalty is 90 days of interest, this increases to 180 days for terms of one year to four years and 270 days of interest if your CD term is four years or longer.
- Transfer From an External Account is Required: Since Merrick Bank does not have checking or standard savings accounts, you’ll need to transfer the funds for your new CD from an external bank account.
Overall, Merrick offers some of the highest CD rates, but the minimum deposit is quite high.
CD Term | APY |
|---|---|
3 Months | 4.55% |
6 Months | 4.40% |
9 Months | 4.25% |
12 Months | 4.20% |
18 Months | 4.15% |
24 Months | 4.15% |
36 Months | 4.00% |
48 Months | 4.00% |
60 Months | 3.95% |
Top Offers From Our Partners
Merrick Bank Credit Cards
Merrick Bank has four products in its credit card line. Each of these is designed for a different type of user, so you can find one that best suits your circumstances. These include:
- Double Your Line: As the name suggests, this card is designed to offer a higher credit line with responsible use. During the first seven months after opening your account, you simply need to use your card, making the minimum payment or more every month, on time. After this period, your credit line will be automatically increased.
- Orlando Magic City Edition: This is a co-branded card for fans, who can enjoy cash back on all purchases, but also receive discounts at the Arena team store and on select food and drink concessions.
- Double Your Line Secured: As the name suggests, this is the secured version of the standard Double Your Line card. You’ll need a $200 security deposit to open this card account and if you use your card, making the scheduled payments on time every month for seven months, your credit line will be automatically doubled to $400 without needing to make an additional deposit.
- Classic Secured: This card requires an initial security deposit of $200 and $3,000, which will determine your credit line. This allows you to choose a higher credit line if you have a higher security deposit available.
Since Merrick Bank targets customers with less than ideal credit, it does advertise reasonable rates, but as with all credit card issuers, your specific rate will depend on your particular circumstances.
Pros and Cons
As with all financial institutions and products, there are positives and negatives associated with Merrick Bank.
It is important to be aware of both these pros and potential cons before making a decision to use this financial institution.
Pros | Cons |
|---|---|
High CD Rates | High CD Minimum Deposit |
Lower Than Average Credit Card Rates | Loan Rates Not Advertised |
Focus on Lower Credit Score Customers | Origination and Early Repayment Fees |
Available Nationwide | No Checking or Savings Accounts |
Specialist in RV and Boat Financing |
- High CD Rates
Merrick Bank offers impressive CD rates that not only outpace the national average rates, but compare favorably with many online banks, especially when it come to 12-month CD rate.
This means that you can access a rate that can be many times higher than you would find with a traditional bank.
- Lower Than Average Credit Card Rates
The Secured Credit Card is the most popular Merrick Bank product and it has a lower than average APY. Merrick Bank advertises that both of its secured credit card options offer its lowest rates.
This means that if you have access to a security deposit, you can access a decent rate, regardless of if you have poor or fair credit.
- Focus on Lower Credit Score Customers
While Merrick Bank does not guarantee acceptance of all customers, it is open to helping those who have poor credit or no credit history.
This means that it is quite realistic to qualify for Merrick Bank, which usually offers credit cards for less-than-ideal credit.
- Available Nationwide
Since Merrick Bank is online, there are no geographical restrictions of needing to find a local branch.
You can open your account online and manage it via the comprehensive Merrick Bank customer portal.
- Specialist in RV and Boat Financing
Merrick Bank is known for its recreational loans, making it attractive for those who may have difficulty obtaining a lender either because of their credit history or the nature of their purchase.
Merrick Bank works with a network of approved dealers around the country.
- High CD Minimum Deposit
While Merrick Bank CDs do offer impressive yields, you will need at least $25,000 to open one.
This creates a large barrier to entry for many customers, particularly as the funds need to be deposited in one installment.
- Loan Rates Not Advertised
While Merrick Bank is an online institution, the website is quite lacking in details for its loan products.
You won’t find the rates or terms for either the personal loans or recreational loans advertised on the website.
- Origination and Early Repayment Fees
Another potential downside of Merrick Bank loans is that you’ll need to pay an origination fee when you take out the loan and you’ll incur an early repayment fee if you clear the loan balance ahead of schedule.
- No Checking or Savings Accounts
Merrick Bank does not operate as a traditional bank, so it's not the right place for you if you need a checking account.
This means that if you’re looking to move all of your banking under one roof, Merrick Bank is not a good fit for you.
Which Loans Are Available For Merrick Customers?
Merrick Bank offers two types of loans. The first is the Merrick Bank personal loan, which is available with terms of up to 36 months for $2,500 to $12,500. The rates for these loans are fixed and determined by your credit status.
You can check if you pre-qualify on the Merrick Bank website with a soft credit pull that will not affect your
credit. If you’re approved, you may be able to access your funds as quickly as within one business day. However, there is an origination fee that applies to Merrick Bank personal loans. This is 5%, which can significantly add to your loan costs. You also need to bear in mind that there is a prepayment fee, if you decide to repay your loan early.
The other type of Merrick Bank loan is a recreational loan. These can be used for RV, powersports, boats or trailer purchases. This provides financing for all credit backgrounds and the funds can be used for new or used purchases.
However, Merrick Bank works with dealer partners to assist you with financing your purchase. You can use the Merrick Bank website to locate approved dealers and explore the finance and payment options.
How to Join Merrick Bank?
Since Merrick Bank is an online only financial institution, you can open an account quite easily via the Merrick Bank website. If you want to open a CD account, you can complete this process in a few simple steps.
- Visit the Product Page: The first thing you’ll need to do is find the CD product page on the Merrick Bank website. You’ll find this under the “Products” tab on the top bar of the main webpage. Once you’re on this page, you’ll see all the details and rates for the various CD products. If you decide to go ahead, you simply need to click the “Open an Account” button.
- Confirm If You’re a New Customer: The first screen you’ll see asks you to confirm if you’re an existing Merrick Bank customer or new to Merrick Bank. If you hold any other Merrick Bank products, you can log in and Merrick Bank will pre fill in some of the details on the account application form.
- Select Your CD Product: Merrick Bank will now ask you to confirm the CD term you would like. You can click on the button to view all of the available terms and current rates.
- Complete the Application Form: You’ll need to provide a valid email address before you start, so you can save your application at any time and go back to it later. However, the application form itself is fairly standard. You’ll need to provide your full name, contact details, Social Security Number and other personal information.
- Fund Your Account: The final step you’ll need to complete is to fund your account. You’ll need to transfer funds into your new CD from an external bank account.
How's Merrick Bank Customer Service?
Merrick Bank is one of the largest credit card issuers in the U.S and its entire product line is focused on helping those with credit issues access products and rebuild their credit profile. The bank only has one physical location, but this is its corporate headquarters in Utah. So, if you need to access the customer service team you’ll need to do this online or by phone.
The Merrick Bank helpline is available Monday through Friday from 8 am to 6 pm CT. The bank also has a mobile app, which you can use to manage your account and contact the customer service team.
Merrick Bank has an excellent Trustpilot score, with many consumers praising the bank and its services. However, there are a number of negative comments on the company’s BBB profile. Most of these comments relate to the Merrick Bank credit cards and there is some confusion about the credit card fees and how they are applied to the account.
FAQs
What is required to open a Merrick Bank account?
As with all financial institutions, Merrick Bank is legally required to confirm the identity of account applicants. So, you’ll not only need to provide your personal details, but also verify your ID with a valid driver’s license or state issued photo ID.
Is Merrick Bank worth it if I have bad credit?
Yes, Merrick Bank specializes in helping those who are looking to rebuild their credit. So, you may be able to access credit cards and loans that would otherwise have been unavailable to you.
What's the main reason to skip Merrick Bank?
If you’re looking to keep all of your banking under one roof, you’ll want to skip Merrick Bank, since it does not offer checking or savings accounts.
How We Rate And Review Banks: Our Methodology
The Smart Investor team extensively reviewed hundreds of banks and credit unions. We assessed them based on four main categories, each with specific features:
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Diversity of Products and Their Attractiveness (40%): We extensively analyzed the breadth and appeal of each bank's product offerings, including savings accounts, checking accounts, loans, investment options, and more. Higher ratings were assigned to banks with a diverse range of products that are attractive in terms of interest rates, fees, terms, and additional features. This category provides insights into the variety and value of the bank's offerings, crucial for meeting customers' diverse financial needs.
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Account Features (30%): This category delves into the features and benefits accompanying each bank's accounts. We scrutinized factors such as promotions, deposit and withdrawal options, ATM accessibility, online and mobile banking functionalities, as well as additional perks like overdraft protection and rewards programs. Banks offering comprehensive and convenient features received higher ratings, reflecting the overall value of their accounts to customers.
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Customer Experience (20%): A positive customer experience is paramount in banking, so we evaluated each bank's performance in this area. This included assessing the ease of account opening, quality of customer service, availability of support channels, and overall user satisfaction. Ratings were based on factors such as responsiveness, efficiency, and the bank's commitment to meeting customer needs, ensuring a seamless and satisfactory banking experience.
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Bank Reputation (10%): The reputation of a bank is a critical consideration for customers. We examined factors such as financial stability, regulatory compliance, and public perception to determine each institution's overall trustworthiness and reliability. Higher ratings were awarded to banks with strong reputations, reflecting their credibility and ability to inspire confidence among customers.
By considering these categories, individuals can make informed decisions that align with their financial needs and preferences, ensuring they choose a bank that offers competitive products, excellent features, a positive customer experience, and a solid reputation.
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