Merrick Bank Review

Pros Explained

• High CD yields – Merrick Bank offers CDs in terms ranging from six months to two years, with annual percentage yields (APYs) that range from 4.80% to 5.15%. These rates outpace the national average, which range from 1.19% for a six-month term to 1.45% for a two-year term.
• Lower-than-average APR on secured credit card – The secured credit card, which is Merrick Bank’s most popular product, has an annual percentage rate (APR) of 21.70% for card purchases, which is above the national average of 18.97% APR on secured credit cards.
• Specializes in boat and RV financing – While Merrick Bank also offers personal loans, the institution is known for its boat, RV, and horse trailer loans. This makes it an attractive choice for borrowers who might otherwise have trouble finding a lender, either because of the specificity of their purchase or their credit history. Merrick Bank works with thousands of approved dealers across the United States.
• Focuses on helping customers with lower credit scores – Though Merrick Bank does not accept all comers regardless of credit history, it is very open to helping those with either no credit record or a poor credit record build their credit history.

Cons Explained

• $25,000 minimum CD deposit – The impressive yields for Merrick Bank CDs come with a cost—you can only open one with a $25,000 minimum deposit, placing it out of reach for the average customer.
• Confusing credit card fees – Setup and maintenance fees for the secured credit card are “removed” from your credit limit, which can be somewhat confusing.
• Loan rates not listed online – Neither the recreational vehicle loans nor the personal loans have their rates listed on the Merrick Bank website, making it more difficult to do an apples-to-apples comparison 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 Best For?

Merrick Bank is going to work best for customers who are looking to get a credit card or loan despite a lackluster credit history. It will especially appeal to customers who:

• Want to build their credit history
• Do not need to pair their general banking needs with their lender or credit card issuer
• Are comfortable with an online-only banking experience

What Does Merrick Bank Offer?

This institution only offers a few of the products and services you might expect from a bank. These include:

• CDs
• Credit cards
• Online banking experience

CDs

Merrick Bank’s CDs offer a higher-than-usual rate compared with the national average for CDs. However, the minimum deposit to open a CD is a steep $25,000, which may put this product out of reach for many potential customers.

You can purchase a CD in any one of the following terms:

Merrick Bank also levies a fairly stiff penalty for early withdrawal. CDs with a term of 364 days or less will pay 90 days of interest. CDs with a term 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 Cards

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. This card’s big claim to fame is the fact that Merrick Bank will regularly review your account to increase your credit line.
• Secured Visa – The secured card only has a $200 minimum deposit, which is similar to other secured cards on the market. You also have the option to add to your deposit over time, up to $3,000, thereby giving you more purchasing power.

Merrick Bank Customer Service

Merrick Bank boasts only one physical location in the country, its corporate headquarters in South Jordan, Utah. However, you can reach a customer service agent by phone at 1-800-204-5936, although it’s unclear as to what hours the phones are staffed.

Merrick Bank also has a mobile app on which you can make payments, contact customer service, check your balance, manage account notifications, access your FICO score once per month, and even freeze your card in case of loss or theft. However, the app is not highly rated on app stores.

How to Bank With Merrick Bank

Potential credit card customers can see if they are prequalified for the Platinum Visa online. If you are not, you can apply for the Secured Visa online.

Borrowers can apply for a loan online, and customers who wish to purchase a CD can do so online as well. Customers looking for a boat, an RV, or a horse trailer loan may see if they qualify and apply at one of the thousands of participating dealers across the country.

Once you have set up your credit card, loan, or CD, you can access information about your account either online or through the smartphone app.

Methodology

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of banks. We collected over 20 data points across more than 80 banks—including products available, interest rates, fees, and accessibility—to ensure that our content helps users make the right decision for their savings and banking needs.