Merrill Edge does not offer a dedicated high yield savings account
Merrill Edge, the digital banking arm of Bank of America, does not have a standalone high yield savings product. Instead, the bank offers a Basic Savings Account and a Premium Savings Account, both of which pay interest rates significantly lower than what you would find at online banks or credit unions specializing in savings products.
As of now, Merrill Edge's savings accounts pay rates well below 1% APY. The exact rate depends on your account type and balance, but neither product is positioned to compete with high yield savings accounts, which typically offer rates between 4% and 5% APY. If your primary goal is to earn interest on cash you are holding, Merrill Edge is not the right choice.
Merrill Edge is designed around investment and brokerage services, not deposit products. The savings accounts exist mainly as a place to park cash between trades or to hold emergency funds while you maintain a relationship with the brokerage side of the platform.
Key Takeaways
- Merrill Edge offers Basic and Premium Savings Accounts, but neither pays rates competitive with high yield savings products.
- Merrill Edge savings rates are typically below 1% APY, while high yield savings accounts elsewhere pay 4% to 5% APY.
- Merrill Edge is built around brokerage and investment services, not deposit products, so savings accounts are secondary.
- If you want high yield savings, you will need to open an account at a different bank or credit union.
What Merrill Edge savings accounts actually offer
Merrill Edge's Basic Savings Account requires no minimum balance and has no monthly fee. The Premium Savings Account requires a higher balance (typically $25,000 or more, depending on your relationship with Bank of America) and pays a slightly higher rate. Neither account has competitive interest rates by current standards.
Both accounts come with standard features: FDIC insurance up to $250,000, online access, and the ability to link to your Merrill Edge brokerage account. You can transfer money between your savings and investment accounts within the platform, which is convenient if you are actively trading or managing investments. But convenience does not make up for the low interest rate.
The accounts are also tied to Bank of America's broader network. If you have a Bank of America checking account or credit card, you may see some integration benefits, but these do not include higher savings rates.
Why Merrill Edge rates lag behind high yield savings
Merrill Edge is owned by Bank of America, a large traditional bank. Traditional banks typically pay lower rates on savings because they have higher operating costs, physical branch networks, and different funding models than online-only banks. Online banks can offer higher rates because they have minimal overhead and can pass savings on to depositors.
Merrill Edge's business model is built around investment products and trading, not deposit gathering. The savings account is an ancillary product, not a revenue driver. This means there is little incentive to offer competitive rates to attract deposit customers the way a dedicated savings bank would.
The rate environment also matters. When the Federal Reserve raises interest rates, banks have more room to offer higher rates to depositors. When rates fall, so do savings account rates across the industry. Merrill Edge typically lags behind online competitors regardless of the rate environment.
Where to find high yield savings if you want to leave Merrill Edge
If you are looking for a true high yield savings account, you have several options. Online banks like Marcus, Ally, American Express Personal Savings, and Wealthfront Cash Account typically offer rates between 4% and 5% APY. Credit unions also often offer competitive rates on savings accounts, especially if you are a member.
You do not have to close your Merrill Edge account to open a high yield savings account elsewhere. Many people keep a Merrill Edge savings account for convenience while holding the bulk of their emergency fund or short-term savings at a high yield provider. You can transfer money between banks as needed.
The trade-off is that you will be managing accounts at two institutions instead of one. But the difference in interest earned over a year can be substantial. On $10,000, the difference between 0.5% APY (roughly what Merrill Edge pays) and 4.5% APY (what a high yield account pays) is $400 per year.
Should you keep cash in Merrill Edge savings if you already have an account?
If you already have a Merrill Edge account and are actively using the brokerage side, keeping some cash in the savings account makes sense for operational convenience. You can move money quickly between savings and your investment account, and you avoid the friction of transferring between banks.
But if you are holding a large emergency fund or cash you do not plan to invest soon, moving that money to a high yield savings account at another bank will earn you significantly more interest. There is no penalty for moving money out of Merrill Edge savings, and the process takes a few business days.
The decision comes down to how much cash you are holding and how much you value convenience versus interest earnings. Small amounts ($1,000 to $5,000) may not justify the effort of opening another account. Larger amounts ($10,000 or more) almost certainly do.
How Merrill Edge compares to other Bank of America products
Bank of America itself offers a Bank of America Advantage Savings account with rates similar to Merrill Edge's offerings. Bank of America also owns Merrill Edge, so the two products are not in direct competition. If you are a Bank of America customer, you will not find better rates by switching between these two products.
Bank of America does not offer a high yield savings account under its own brand. The bank's strategy is to offer investment and wealth management services (through Merrill Edge and Merrill Wealth Management) rather than compete on deposit rates. If you want high yield savings and also want to stay within the Bank of America family, your only option is to look at their investment products, not their savings accounts.
Frequently Asked Questions
Can I earn more interest by putting money in a Merrill Edge money market account instead of savings?
Merrill Edge does not offer a money market account. The bank offers savings accounts and brokerage services, but not money market products. If you want a money market account, you would need to open one at a different bank.
Does Merrill Edge offer any promotional rates on savings accounts?
Merrill Edge occasionally runs promotions for new customers, but these are typically limited-time offers and do not result in rates competitive with high yield savings accounts. Check the Merrill Edge website for current promotions, but do not expect rates above 1% APY.
If I transfer money from Merrill Edge savings to a high yield account, will there be fees?
Merrill Edge does not charge fees for transferring money out of savings accounts. The receiving bank may have its own requirements, but the transfer itself is free. The process typically takes three to five business days.
What happens to my Merrill Edge savings rate if I stop using the brokerage?
Your savings rate will not change if you stop trading or investing. The rate is tied to your account type (Basic or Premium), not your activity level. However, if you are not using the brokerage services, there is no reason to keep your cash at Merrill Edge instead of moving it to a higher-paying account.
Can I use Merrill Edge savings as part of a larger banking strategy?
Yes. Many investors keep a small amount in Merrill Edge savings for operational convenience while holding their main emergency fund at a high yield bank. This approach lets you move money quickly between savings and investments when you need to, while still earning competitive rates on most of your cash.