Merrick Bank was founded in 1997 and has just one location in South Jordan, Utah – which also serves as their headquarters.

Their primary business focus is on credit cards and helping consumer’s rebuild their credit. They have been recognized as a top 20 credit card issuer in the United States and claim almost 3 million cardholders with a total of ~$6 billion in credit issued.

Although not their main business, Merrick Bank also offers several CDs (certificates of deposit) to consumers that currently feature some very competitive APYs (annual percentage yields).

Merrick Bank is federally insured by the FDIC and all consumer deposits are insured up to $250,000 per depositor or $500,000 for joint accounts.

They currently offer seven CDs with terms from 6 to 60 months. To see if these deposit accounts are right for you, continue reading our review below.

Merrick Bank CD Rates + Account Details

Merrick Bank’s CDs come with a steep minimum deposit requirement of $25,000 to open. This is significantly higher than most online banks which tend to keep their minimums to $1,000 or less.

CD Rates

To give these yields some context, the current national average for a 12 month CD and a 60 month CD sit at just 0.31% APY and 0.57% APY, respectively, according to FDIC data.

Not only are Merrick Bank’s CD rates significantly higher than the national average for each term, for their terms of 24 months and less they are among the highest yielding offers for all online banks and nationally available credit unions in the country. For their CD terms of 36 – 60 months, they are less competitive. Many banks and credit unions offer yields above the 3 percent mark for those longer terms of 3 years or more.

Compounding and Crediting Interest

Merrick Bank CDs feature daily compounding interest. They credit this interest to your account monthly on roughly the same day you opened the CD.

If you would like to have this interest paid out to an external bank account, you may contact them to set up a monthly ACH transfer at 1-866-638-6851.

Grace Period and Early Withdrawal Fees

You’ll have 10 calendar days upon your CDs maturity ‘the grace period’ in which you may add or withdraw any or all funds without incurring a penalty. If the 10th day falls on a non-business day, then the grace period will be extended to the next business day.

If you need any of your funds prior to your certificate’s maturity, then you will incur a penalty fee.

Early Withdrawal Fees

Opening and Funding your CD

Applying, opening and then funding your Merrick Bank CD can be done online and in a few short steps.

Here’s what you’ll need to start and finish the process:

• Email Address
• Social Security Number,
• Date of Birth (Account Owners must be at least 18 years old),
• valid U.S. street address. No P.O. Box addresses allowed.

Funding:

• Current bank account number where funds will be coming from
• Your bank or credit union’s routing number

Banking Experience and Consumer Sentiment

Although Merrick Bank’s CDs come with highly competitive rates, they do have low review ratings on the BBB (Better Business Bureau).

That said, nearly all the reviews have to deal with their credit card products and not with their certificates of deposit.

Regardless, they have just a 1.15 star rating out of 5 with over 200 reviews as of the time of this writing.

In terms of their mobile apps, Merrick Bank receives much higher marks.

Their IOS app has a 4.1 star rating out of 5 with over 2,300 consumer ratings and their Android app has a 4.5 star rating out of 5 with over 7,300 consumer reviews.

The only type of deposit accounts Merrick Bank offers are its CDs. They don’t currently offer checking accounts, savings accounts or money market accounts.

There are also no ATMs nor is Merrick Bank a member of any ATM network.