Merrill Lynch does not offer a standalone high yield savings account
Merrill Lynch, which is owned by Bank of America, does not have a separate high yield savings product. If you have a Merrill Lynch brokerage account or investment account with them, you cannot park money in a high yield savings account through that same relationship.
However, if you also have a Bank of America checking or savings account, you may be able to move money between your Merrill Lynch account and that bank account. Bank of America does offer savings products, though the rates they pay are typically lower than what you would find at online banks or credit unions that specialize in high yield savings.
Key Takeaways
- Merrill Lynch itself does not offer high yield savings accounts as a standalone product.
- If you have both a Merrill Lynch investment account and a Bank of America bank account, you can transfer money between them, but Bank of America's savings rates are usually lower than online alternatives.
- Money held in a Merrill Lynch brokerage account is invested in securities like stocks and bonds, not held in a savings account earning interest.
- If you want high yield savings alongside investments, you would need to open accounts at separate institutions.
What happens to cash in a Merrill Lynch account
When you deposit money into a Merrill Lynch brokerage or investment account, that cash does not automatically go into a savings account. Instead, it sits in what Merrill Lynch calls a cash management feature or sweep account. The money is typically moved into money market funds or short-term securities, not a savings account earning a fixed rate.
The rate you earn on this cash depends on which Merrill Lynch account type you have and current market conditions. These rates change frequently and are often lower than what online banks offer for high yield savings. You can see your current rate by logging into your Merrill Lynch account, but there is no may provide it will remain the same.
Bank of America savings options if you have both accounts
If you already bank with Bank of America and also have a Merrill Lynch account, you can move money between them without fees. Bank of America offers a regular savings account and a money market account, both of which pay interest, though the rates are typically below 1% depending on your balance and account type.
Bank of America also offers a Premium Savings account for customers with higher balances, which pays a slightly better rate. However, even this rate is usually lower than what you would find at online banks like Marcus, Ally, or American Express Personal Savings, where rates often exceed 4% depending on market conditions.
Why Merrill Lynch customers look elsewhere for high yield savings
Many people who invest through Merrill Lynch keep their high yield savings account at a different bank. This is a normal setup: you might have your investments at Merrill Lynch and your emergency fund or short-term savings at an online bank that offers a higher rate.
The reason is straightforward — Merrill Lynch is built for investing, not for savings. Their business model centers on managing investments and charging fees for information or trading. Banks that focus on savings accounts, like online-only banks, can offer higher rates because they have lower overhead costs and do not need to maintain physical branches.
How to compare your options
If you want both a Merrill Lynch investment account and a high yield savings account, you will be opening accounts at two different institutions. Start by checking what rate Bank of America currently offers, since transfers between Bank of America and Merrill Lynch are seamless. Then compare that to rates at online banks by visiting their websites directly — rates change frequently, so checking the bank's own site is more reliable than a comparison tool.
Write down the rates, any minimum balance requirements, and whether there are monthly fees. Some high yield savings accounts charge a fee if your balance drops below a certain amount, while others have no minimums at all. The difference between a 4.5% rate and a 4.75% rate may seem small, but on $10,000 it adds up to $25 per year.
Moving money between accounts
If you decide to keep your savings at a different bank than Merrill Lynch, transferring money is straightforward. You can link your Merrill Lynch account to your high yield savings account and move money electronically. This usually takes one to three business days.
Some people set up automatic transfers — for example, moving a set amount from their paycheck into high yield savings each month, then moving larger amounts to Merrill Lynch for investing once they have saved enough. This approach lets you earn a higher rate on money you are saving while keeping your investments separate.
Frequently Asked Questions
Can I use Merrill Lynch as my main savings account?
Technically yes, but it is not designed for that purpose. Money in a Merrill Lynch account is meant to be invested, not held as savings. The rates paid on cash are lower than savings accounts, and you would be missing out on the investment features that make Merrill Lynch useful.
Does Merrill Lynch charge fees to keep cash in my account?
Merrill Lynch does not charge a fee straightforward for holding cash, but they may charge fees for certain account types or if your balance falls below a minimum. Check your account agreement or call Merrill Lynch directly to confirm what applies to your specific account.
What is the current interest rate on Merrill Lynch cash?
Merrill Lynch does not publish a single rate — it varies by account type and changes based on market conditions. Log into your account or call Merrill Lynch at the number on your statement to see your current rate. Online banks typically publish their rates on their home page for straightforward comparison.
Can I transfer money from Merrill Lynch to a high yield savings account at another bank?
Yes. You can link your Merrill Lynch account to any other bank account you own and transfer money electronically. The transfer usually takes one to three business days. There are no fees for this transfer.
Should I close my Merrill Lynch account if I want high yield savings?
No. Many people keep both — a Merrill Lynch account for investing and a high yield savings account at another bank for emergency funds or short-term goals. They serve different purposes and work well together.