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 have a dedicated high yield savings product. If you hold cash at Merrill Lynch, it sits in a money market account or a sweep account that moves uninvested cash into money market funds or Bank of America deposit products. The rate you earn depends on which account type you have and which sweep option is active.
If you are looking for a high yield savings account specifically, you will need to open one at a separate bank. Merrill Lynch is built for brokerage and investment management, not for competing on savings rates. That said, if you already have assets at Merrill Lynch, understanding what happens to your cash there matters—because the rate you earn may be lower than what you could get elsewhere.
Key Takeaways
- Merrill Lynch does not offer a high yield savings account; cash holdings are placed in money market accounts or sweep accounts instead.
- The rate on Merrill Lynch cash depends on the sweep option you choose and current money market fund yields or Bank of America deposit rates.
- If you want a high yield savings account, you must open one at a separate bank—Merrill Lynch cannot transfer money into one for you automatically.
- Merrill Lynch clients can hold a high yield savings account at another bank and use it alongside their Merrill Lynch brokerage account.
How cash is held at Merrill Lynch
When you deposit money into a Merrill Lynch brokerage account and do not invest it, the cash goes into a default sweep account. A sweep is an automatic movement of uninvested cash into a holding vehicle—usually a money market fund or a deposit account at Bank of America. Merrill Lynch offers several sweep options, and the one you get depends on your account type and what you have selected in your account settings.
The most common sweep options are a money market mutual fund (which invests in short-term debt securities) or the Bank of America Cash Management Account (a deposit product). Money market funds are not FDIC insured, but they are considered very low-risk. Bank of America deposit products are FDIC insured up to $250,000 per depositor, per bank. The rate you earn on either option fluctuates with market conditions and is not may provide.
You can change your sweep option in your Merrill Lynch account settings, but you cannot opt out of a sweep entirely—cash must go somewhere. If you want to hold a high yield savings account outside of Merrill Lynch, you set that up at a separate bank and manage the transfer yourself.
What rates Merrill Lynch cash earns
Merrill Lynch does not publish a single "cash rate" because the rate depends on which sweep vehicle holds your money. If your cash is in a money market fund, you earn the fund's current yield, which changes daily. If your cash is in a Bank of America deposit account, you earn whatever APY Bank of America is offering on that product at that time.
As of recent years, Bank of America's deposit rates have been lower than rates offered by online banks and credit unions that specialize in high yield savings. This is typical: large traditional banks do not compete aggressively on savings rates because they have other ways to earn revenue. If you want to compare, you can check the current rate on Bank of America's savings products and then check rates at online banks like Marcus, Ally, or American Express Personal Savings. The difference can be meaningful if you hold a large cash balance.
Merrill Lynch does not allow you to set a target rate or lock in a rate on cash holdings. The rate moves with the market, and you have no control over it beyond choosing which sweep option to use.
Opening a high yield savings account outside Merrill Lynch
If you want a high yield savings account, you will open it at a bank that offers one—not at Merrill Lynch. Online banks, credit unions, and some regional banks offer high yield savings accounts with rates that change based on the Federal Reserve's rate environment. You can open an account at one of these institutions while keeping your Merrill Lynch brokerage account active.
The process is straightforward: choose a bank, provide your personal information and Social Security number, link a funding source (usually a bank account), and make an initial deposit. Most online banks have no minimum balance requirement and no monthly fees. Once the account is open, you can transfer money between your Merrill Lynch account and your high yield savings account using ACH transfers, which typically take one to three business days.
You will need to manage these transfers yourself—Merrill Lynch will not automatically move money into a high yield savings account at another bank. If you want to automate savings, you can set up a recurring transfer from your Merrill Lynch account to your high yield savings account on a schedule that works for you.
Why Merrill Lynch clients might use both accounts
Some investors keep a high yield savings account at a separate bank while maintaining a Merrill Lynch brokerage account. The high yield savings account serves as an emergency fund or short-term cash reserve, earning a competitive rate. The Merrill Lynch account holds investments and any cash that is actively being deployed into trades or positions.
This approach makes sense if you are an active investor who uses Merrill Lynch for trading and portfolio management but also wants to earn a better rate on cash you are not investing. The high yield savings account is FDIC insured and liquid, so you can access the money quickly if you need it. Your Merrill Lynch cash, meanwhile, stays in the sweep account and is available for immediate investment if an opportunity arises.
The downside is that you have to manage two accounts and two login credentials. If you prefer simplicity and do not plan to invest the cash, a high yield savings account at a dedicated bank is usually the better choice.
Merrill Lynch cash management features
Merrill Lynch does offer some tools to manage cash within your brokerage account. You can view your cash balance in real time, see which sweep option is active, and change your sweep selection if you want to move between money market funds and Bank of America deposit products. You can also set up automatic investments, which will move cash into securities on a schedule you define.
These features are useful if you are an active investor, but they do not replace a high yield savings account. The rates are still lower than what you would earn at a dedicated high yield savings bank, and the money is still tied to your brokerage account. If your goal is simply to earn interest on cash you are saving, a high yield savings account elsewhere will serve you better.
Frequently Asked Questions
Can I transfer money from Merrill Lynch to a high yield savings account?
Yes. You can initiate an ACH transfer from your Merrill Lynch account to a high yield savings account at another bank. The transfer typically takes one to three business days. You will need the routing number and account number of the high yield savings account to set it up.
Is my cash at Merrill Lynch insured if it is in a money market fund?
No. Money market funds are not FDIC insured. However, they are considered very low-risk because they invest in short-term, high-quality debt. If your cash is in a Bank of America deposit account sweep, it is FDIC insured up to $250,000.
What is the current interest rate on Merrill Lynch cash?
Merrill Lynch does not publish a single cash rate. The rate depends on which sweep option holds your money and current market conditions. You can log into your account to see the current yield on your sweep vehicle, or contact Merrill Lynch directly for the most up-to-date rate.
Can I use Merrill Lynch as my primary savings account?
Technically yes, but it is not designed for that purpose. Merrill Lynch is a brokerage and investment platform, not a bank. If you want a dedicated savings account with a competitive rate, a high yield savings account at a bank is a better fit.
Do I have to use Merrill Lynch's sweep account?
Yes. Any uninvested cash in your Merrill Lynch account must be swept into either a money market fund or a Bank of America deposit product. You cannot hold cash outside of these options, but you can choose which sweep vehicle to use.