Merrill Lynch does not offer a standalone high yield savings account
Merrill Lynch, the investment and wealth management division of Bank of America, does not market or sell a dedicated high yield savings product. If you hold cash at Merrill Lynch, it sits in a money market fund or a sweep account that moves uninvested cash into money market instruments—not a savings account with FDIC protection and a published APY.
This matters because the interest rate you earn on cash at Merrill Lynch depends on the type of account you have and how your advisor structures it. A high net worth client with a brokerage account will see different rates than someone with a smaller balance. The rates are not advertised publicly the way a bank's savings APY is.
If you are looking for a high yield savings account specifically, you will need to open one at a bank or online financial institution separate from Merrill Lynch. Many people do this: they keep investments at Merrill Lynch and maintain a savings account elsewhere for emergency funds or cash they want to access quickly.
Key Takeaways
- Merrill Lynch offers money market funds and sweep accounts for cash, not FDIC-insured savings accounts with published APY rates.
- Interest rates on Merrill Lynch cash holdings vary by account type and balance size and are not posted publicly like bank savings rates are.
- If you want a high yield savings account, you will need to open one at a separate bank or online financial institution.
- Some Merrill Lynch clients keep a high yield savings account elsewhere and use Merrill Lynch primarily for investments.
How Merrill Lynch handles uninvested cash
When you have money sitting in a Merrill Lynch brokerage account that is not invested in stocks, bonds, or funds, it does not stay as cash. Instead, it is automatically swept into a money market fund or money market sweep account. The rate you earn depends on which sweep option your account is set up for.
Merrill Lynch offers clients a choice of sweep destinations. Some are proprietary Merrill Lynch money market funds; others are third-party funds. The interest rate fluctuates with the broader money market, and Merrill Lynch does not publish a single APY the way a bank does. Your statement will show the rate earned, but it changes.
For clients with very large balances or premium account status, Merrill Lynch may offer different sweep options or negotiated rates. This is one reason the rate you see may differ from what another Merrill Lynch customer earns on the same amount.
The difference between a money market fund and a savings account
A money market fund is not the same as a savings account. A savings account at a bank is FDIC-insured up to $250,000 per depositor, per institution. A money market fund is not FDIC-insured; it is a mutual fund that invests in short-term debt instruments like Treasury bills and commercial paper.
Money market funds are considered very safe because they hold short-term, low-risk securities. But they are not insured by the FDIC. If the fund's value drops—which is rare but possible—you could lose money. A savings account guarantees your principal.
Money market funds also have different rules around access. Some allow unlimited withdrawals; others may have restrictions. A savings account typically allows you to withdraw your money whenever you want without penalty.
Bank of America savings accounts as an alternative
Because Merrill Lynch is owned by Bank of America, you might assume you can link a Bank of America savings account to your Merrill Lynch brokerage account. You can—but Bank of America's savings accounts do not offer rates competitive with online banks' high yield savings products.
As of early 2024, Bank of America's standard savings account APY is significantly lower than what online banks like Marcus, Ally, or American Express offer. If you want a high yield savings account, opening one at an online bank separate from both Merrill Lynch and Bank of America will likely give you a better rate.
You can keep your Merrill Lynch brokerage account and your high yield savings account at different institutions. Many investors do this to separate their investment accounts from their emergency savings.
When a money market fund at Merrill Lynch might make sense
If you are a Merrill Lynch client and you have cash you plan to invest soon, leaving it in the sweep account is convenient. You do not have to move money between institutions, and the rate is reasonable for short-term parking. The money is available to invest immediately when you decide to buy.
If you are holding a large balance at Merrill Lynch and you have a premium account status (such as Merrill Wealth or Merrill Private Wealth), you may have access to better sweep rates or negotiated terms. It is worth asking your advisor what options are available to you.
For long-term emergency savings or money you want to keep separate from your investments, however, a high yield savings account at a bank is usually the better choice. The FDIC insurance and the higher rate make it more suitable for that purpose.
How to find a high yield savings account if you use Merrill Lynch
If you want to open a high yield savings account while keeping your Merrill Lynch brokerage account, you have many options. Online banks like Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank all offer high yield savings accounts with no minimum balance and FDIC insurance.
Compare the current APY rates on these sites directly. Rates change frequently, and the highest-paying account today may not be the highest next month. Look for accounts with no monthly fees, no minimum balance requirements, and unlimited transfers.
Once you open the account, you can link it to your Merrill Lynch account if you want to move money between them. Many people use a high yield savings account as a holding place for cash before they transfer it to Merrill Lynch to invest, or as a place to park proceeds from selling investments.
Frequently Asked Questions
Can I transfer money from my Merrill Lynch account to a high yield savings account?
Yes. You can link an external bank account to your Merrill Lynch brokerage account and transfer money out. The transfer typically takes one to three business days. You can also withdraw cash from Merrill Lynch by check or wire transfer.
Is my money safe in a Merrill Lynch money market fund?
Money market funds are very low-risk, but they are not FDIC-insured. Your principal is not may provide the way it is in a savings account. In practice, money market funds rarely lose value, but the possibility exists. If safety and insurance are your priority, a bank savings account is the better choice.
What is the current APY on Merrill Lynch money market funds?
Merrill Lynch does not publish a single APY for all clients. The rate depends on which sweep fund your account uses and changes with market conditions. Log into your account or call your advisor to see the current rate on your specific sweep option.
Do I need to keep my savings account at Bank of America if I use Merrill Lynch?
No. You can open a high yield savings account anywhere and link it to your Merrill Lynch account for transfers. Many investors keep their savings at an online bank with a higher rate and their investments at Merrill Lynch.