5.65% 6-Month CD at Merrill Lynch Bank
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Merrill Lynch Bank is offering a special 5.65% APY 6-month certificate of deposit. The minimum is $25K. The funds must come from sources other than an existing Merrill Lynch relation. Offer expires December 15, 2006.
Merrill Lynch seems to offer these special CD's every few months. In May it was offering a 5.32% 6-month CD and a 5.09% 3-month CD.
Since these CDs are not being purchased directly from a bank, there are more details. Refer to the Merrill's small print for all the details. Here are some of the important ones: The CDs are sold by Merrill Lynch and held in brokerage accounts in which standard account fees may apply. The CDs are issued by Merrill Lynch Bank USA or Merrill Lynch Bank and Trust Co. Merrill Lynch limits the purchase amount of a single CD from any one Bank to $97K for six-month CDs and $98K for 3-month CDs. The limits for retirement accounts are $243K and $246K.
Both Merrill Lynch Bank USA (FDIC page) and Merrill Lynch Bank and Trust Co. (FDIC page) are FDIC insured.
Thanks to the reader who mentioned this new special in the finding deals post.
Merrill Lynch seems to offer these special CD's every few months. In May it was offering a 5.32% 6-month CD and a 5.09% 3-month CD.
Since these CDs are not being purchased directly from a bank, there are more details. Refer to the Merrill's small print for all the details. Here are some of the important ones: The CDs are sold by Merrill Lynch and held in brokerage accounts in which standard account fees may apply. The CDs are issued by Merrill Lynch Bank USA or Merrill Lynch Bank and Trust Co. Merrill Lynch limits the purchase amount of a single CD from any one Bank to $97K for six-month CDs and $98K for 3-month CDs. The limits for retirement accounts are $243K and $246K.
Both Merrill Lynch Bank USA (FDIC page) and Merrill Lynch Bank and Trust Co. (FDIC page) are FDIC insured.
Thanks to the reader who mentioned this new special in the finding deals post.
posted by Banking Guy at
11/20/2006 05:00:00 PM
6 Comments: Post a Comment
comment policy end of commentsThe credit card offer that goes along with this cd is pretty sweet. Low 12-cycle intro rate (1.9%?), plus 15,000 points if you make a $25 purchase with the card within 90 days. (10,000 pts will get you a $100 gift card to places like Barnes and Noble or Macy's, among others) Too bad the perk comes too late for holiday use.
By
Dana, at 8:12 PM, November 20, 2006
Thanks for the note on the credit card offer. That does look like a good deal.
By
Banking Guy, at 5:56 AM, November 21, 2006
Is it really a good deal?? Give up $25k for 6months and get 5.65%apy, and get the Merrill+ creditcard at the same time of the CD; use your creditcard for a $25+ purchase and get $100 giftcard plus 5,000 remaining points in 90days; and the creditcard has 9.99% apr for purchases and 1.9% introductory APR for first 12months on BT and Cash Advance checks (with 3% fee, maximum $75 BT/cash advance fee), and the APR for bank and ATM cash advances at 9.99% (with 3%, upto a $75 max transaction fee). Plus, their rewards is at 1% for merchandise and giftcards? This does sound like a good deal!!!
By
Anonymous, at 6:38 AM, November 21, 2006
If I'm not missing something in the fine print, and you don't mind playing with opm, theoretically you could exploit the percentage spread by taking a cash advance check and investing the money. For example, $5000 on a cash advance check is equivalent to 1.5% fee ($75 max / $5000 = .015) + 1.9% intro on check advance = 3.4% over 12 billing cycles. If you can lock in at 5.5% or better you'd make another $100 in a year. I wouldn't try it, and you'd have to be super vigilant, but I've heard of others using this stratagem successfully. With an upper limit of $250K on Merrill+ card, well, you can see the potential. Personally, I'd be happy with the free gift card and leave it at that...
By
Dana, at 6:33 PM, November 21, 2006
No fees.
There are no fees for the first year for this promo. If you decide to convert your CD account and invest, that'll incur brokerage charges.
So with the 15000 points and a great interest rate, this seems like a win-win to me!
By
Anonymous, at 3:14 PM, December 02, 2006
No fees.
There are no fees for the first year for this promo. If you decide to convert your CD account and invest, that'll incur brokerage charges.
So with the 15000 points and a great interest rate, this seems like a win-win to me!
By
Anonymous, at 3:15 PM, December 02, 2006
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