The benefits explained
- High CD yields – Merrick Bank offers CDs with terms ranging from six months to two years, with annual percentage returns (APY) ranging from 2.10% to 3.10%. These rates exceed the national average, which varies from 0.27% for a six-month term to 0.51% for a two-year term (as of August 15, 2022).
- Lower than average APR on secured credit card – The secure credit cardwhich is Merrick Bank’s most popular product, has a annual percentage rate (APR) of 19.70% for card purchases (as of August 15, 2022), which is higher than the national average of 15.13% APR on secured credit cards.
- Specialized in boat and RV financing – Although Merrick Bank also offers personal loans, the institution is known for its loans for boats, motor homes and horse trailers. This makes it an attractive choice for borrowers who might otherwise have difficulty finding a lender, either because of the specificity of their purchase or their credit history. Merrick Bank works with thousands of authorized dealers across the United States.
- Focuses on helping customers with lower credit scores – Although Merrick Bank does not accept all comers regardless of their credit history, they are very open to helping those who have no credit history or who have a poor credit history build their credit history.
Disadvantages Explained
- Minimum CD deposit of $25,000 – The impressive yields of Merrick Bank CDs come at a cost: you can only open one with a minimum deposit of $25,000, putting it out of reach for the average customer.
- Confusing credit card fees – Secure credit card setup and maintenance fees are “removed” from your credit limit, which can be a bit confusing.
- Loan rates not listed online – Neither RV loans nor personal loans have their rates listed on Merrick Bank’s website, making it harder to compare apples to apples with other lenders.
- No typical deposit accounts – Merrick Bank is not a traditional bank and you cannot open a checking account, savings account or money market account with it. This makes Merrick Bank a poor choice for any customer looking for a one-stop-shop.
Who is Merrick Bank for?
Merrick Bank will work best for customers who are looking to get a credit card or loan despite having a poor credit history. It will especially appeal to customers who:
What does Merrick Bank offer?
This institution offers only a few of the products and services that you would expect from a bank. These include:
- CD
- Credit card
- Online banking experience
CD
Merrick Bank CDs offer a higher than usual rate compared to the national CD average. However, the minimum deposit to open a CD is $25,000, which may put this product out of reach for many potential customers.
You can purchase a CD under any of the following conditions:
| Merrick Bank CD Rates | |
|---|---|
| Term | APY |
| 3 months | 2.10% |
| 6 months | 2.35% |
| 9 months | 2.60% |
| 12 months | 2.80% |
| 18 months | 2.90% |
| 24months | 3.10% |
| 36 months | 2.75% |
| 48 months | 2.75% |
| 60 months | 2.75% |
Merrick Bank also levies a fairly severe penalty for early withdrawal. CDs with a term of 364 days or less will pay 90 days interest. CDs with terms of 365 days to 1,459 days have an early withdrawal penalty of 180 days interest. And CDs with a term of 1,460 days or more have a penalty of 270 days interest.
Credit card
Customers have access to two credit cards through Merrick Bank: the Platinum Visa and the Secured Visa.
- Platinum Visa – The Platinum Visa was created to help you establish or rebuild your credit. The great fame of this card is the fact that Merrick Bank will regularly review your account to increase your line of credit.
- Visa secure – The secured card only has a minimum deposit of $200, which is similar to other secured cards in the market. You also have the ability to add to your deposit over time, up to $3,000, giving you more buying power.
Merrick Bank Customer Service
Merrick Bank has only one physical location in the country, its headquarters in southern Jordan, Utah. However, you can reach a customer service agent by phone at 1-800-204-5936, though it’s unclear what hours the phones are staffed.
Merrick Bank also has a mobile app where you can make payments, contact customer service, check your balance, manage account notifications, access your FICO score once a month, and even block your card in case of loss or theft. However, the app is not highly rated on the Apple App Store, with an average rating of 2.6 out of five stars. Google Play users seem to prefer the app, giving it 4.0 out of five stars.
How to Bank with Merrick Bank
Potential credit card customers can see if they are prequalified for Platinum Visa online. If you are not, you can apply for the secure visa online.
Borrowers can apply for a loan online, and customers who wish to purchase a CD can also do so online. Customers looking for a boat, RV or horse trailer loan can see if they qualify and apply at one of thousands of participating dealers across the country.
Once you’ve set up your credit card, loan, or CD, you can access your account information online or through the smartphone app.
Verdict
Customers with less than perfect credit may find that Merrick Bank’s offerings meet their needs quite well. Credit cards and bank loans are created with credit creation in mind, and these products are available even to many customers who might otherwise be barred from borrowing. Plus, the impressive returns on CDs can entice well-heeled clients to grow their money with Merrick Bank. However, the costs of Merrick Bank’s offerings are both unclear and potentially higher than you might find elsewhere, even for those with spotty credit histories. Add to that that Merrick offers no other deposit accounts and has a high minimum deposit requirement for CDs, and this bank may not be suitable even for the demographic that Merrick is specifically courting. You may be able to find cheaper and more convenient credit cards and loans elsewhere, even if you don’t have good credit.
Methodology
Investopedia is dedicated to providing consumers with unbiased and comprehensive bank reviews. We’ve collected over 20 data points from over 80 banks, including available products, interest rates, fees and affordability, to ensure our content helps users make the right decision for their savings and banking needs.
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