Merchants Bank of Indiana is one of few companies offering a flexible rate certificate of deposit (CD). How does a flex rate CD work?
The company uses the prime rate minus 2.75%. At the time of this writing, 7/25/2023 this rate is now 5.65%. As the prime rate changes, this rate can go up or down.
The company offers a 12 month, 24 month and 36 month CD for the flex rate CD. A minimum of $1000 is required. The account is FDIC insured but the rate is not guaranteed that it will stay the same.
As with most CDs, there is a penalty if the CD is withdrawn or closed early.