Merrill Lynch does not offer a standalone high yield savings account
Merrill Lynch, the wealth management and investment 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 sweep account — money moves automatically into whatever vehicle the firm has chosen, usually a money market fund or a Bank of America deposit account. You do not pick the rate; Merrill Lynch does.
The rate you earn depends on your account type and balance. Merrill Lynch Preferred clients (those with $250,000 or more in assets under management) may see their cash swept into higher-yielding options than standard clients. But these are not marketed as savings accounts and do not work like the high yield savings accounts you would open at an online bank.
If you are looking for a high yield savings account specifically, you will need to open one outside Merrill Lynch — at a bank like Marcus, Ally, or American Express Personal Savings. You can then transfer money between your Merrill Lynch brokerage and an external savings account, though this takes one to two business days.
Key Takeaways
- Merrill Lynch sweeps uninvested cash into money market funds or Bank of America accounts rather than offering a branded savings product.
- The rate you receive depends on your account tier and Merrill Lynch's current sweep choices, not on your own selection.
- Merrill Lynch Preferred clients with $250,000 or more in assets may access higher-yielding sweep options than standard clients.
- To hold money in a high yield savings account, you must open one at a separate bank and transfer funds between institutions.
How Merrill Lynch handles uninvested cash
When you deposit money into a Merrill Lynch brokerage account and do not when ready invest it, that cash does not sit idle. Merrill Lynch uses a sweep program to move it automatically into a holding vehicle. The firm decides which vehicle based on market conditions and your account status.
For most retail clients, cash is swept into the Merrill Lynch Bank Deposit Sweep, which places your money into Bank of America deposit accounts. These accounts are FDIC-insured up to $250,000 per depositor, per bank. The rate fluctuates with the Federal Reserve's benchmark rate and is set by Bank of America, not by you.
Some clients may see their cash swept into a money market fund instead, depending on their account type and the firm's current sweep menu. Money market funds are not FDIC-insured but are typically very stable and may offer a different rate than the deposit sweep.
Rates vary by account tier and current market conditions
Merrill Lynch does not publish a single "savings account rate" because the rate depends on which sweep vehicle your cash lands in. That vehicle depends on your account tier, your total assets with the firm, and Merrill Lynch's current sweep offerings.
Merrill Lynch Preferred clients — those with $250,000 or more in may be able to access assets — may have access to a separate sweep menu with potentially higher-yielding options. Standard clients typically have fewer choices. Both tiers are subject to rate changes whenever the Federal Reserve moves or when Merrill Lynch adjusts its sweep program.
To find out what rate you are currently earning, log into your Merrill Lynch account and look for the sweep settings or cash management section. The rate should be displayed there, along with the vehicle your cash is currently in. If you want to change where your cash goes, you may be able to select a different sweep option from the menu Merrill Lynch offers for your account type.
Why Merrill Lynch uses sweep accounts instead of savings products
Sweep accounts exist to serve brokerage clients, not to compete with banks. When you open a brokerage account, you need somewhere for cash to land between trades. A sweep program solves that problem automatically — you do not have to move money manually or decide where it goes.
This structure also benefits Merrill Lynch. By controlling the sweep vehicle, the firm can move client cash into products that serve its business interests — Bank of America deposit accounts, for example, which keep money within the Bank of America ecosystem. You get FDIC insurance and a rate, but you do not get the choice that a standalone savings account would offer.
If you want control over your rate and the ability to shop for the highest yield, a high yield savings account at a separate institution is the better tool. You sacrifice the convenience of automatic sweeping, but you gain the ability to lock in a specific rate and move your money if rates change elsewhere.
Moving money between Merrill Lynch and an external savings account
If you decide to open a high yield savings account elsewhere, you can transfer money from your Merrill Lynch brokerage to that account. The process takes one to two business days and involves initiating an external transfer through Merrill Lynch's platform.
Log into your Merrill Lynch account, go to the transfer or funding section, and select the option to transfer to an external bank account. You will need to provide the routing number and account number of your external savings account. Merrill Lynch will verify the account (usually by depositing two small test amounts and having you confirm them) before allowing larger transfers.
Once verified, you can move money back and forth between your Merrill Lynch account and your external savings account as often as you want. There are no fees for these transfers, but the one- to two-day processing time means this is not a tool for moving money quickly.
Alternatives if you want high yield and brokerage services in one place
Some brokerages offer better cash management than Merrill Lynch. Fidelity, for example, offers a sweep into a money market fund that has historically paid higher rates than Merrill Lynch's standard sweep. Charles Schwab offers similar options. If you want both brokerage services and competitive cash rates, comparing sweep programs across firms is worth doing.
Another option is to keep your brokerage account at Merrill Lynch but hold most of your cash in a high yield savings account elsewhere. Transfer money to Merrill Lynch only when you are ready to invest. This approach gives you the best of both worlds — you keep your brokerage relationship but earn a higher rate on uninvested cash.
The trade-off is convenience. You will need to manage two accounts and plan transfers in advance, since moving money between institutions takes a couple of days. For most people, this is a small price for earning a meaningfully higher rate on cash.
Frequently Asked Questions
Can I choose where my Merrill Lynch cash gets swept?
You may have limited choices depending on your account tier. Log into your account and look for sweep settings or cash management options. Merrill Lynch Preferred clients typically have more choices than standard clients. If you want full control over where your money goes, you need a separate savings account.
Is my cash at Merrill Lynch FDIC-insured?
If your cash is swept into the Bank Deposit Sweep, yes — it is FDIC-insured up to $250,000 per depositor, per bank. If it is swept into a money market fund, no — money market funds are not FDIC-insured, though they are typically very stable. Check your sweep settings to see which vehicle your cash is in.
What rate am I earning on my Merrill Lynch cash right now?
Log into your account and find the sweep or cash management section. The current rate and the vehicle your cash is in should be displayed there. Rates change when the Federal Reserve moves or when Merrill Lynch adjusts its sweep program, so check periodically if rates matter to your decision.
How long does it take to transfer money from Merrill Lynch to a savings account?
One to two business days. You initiate the transfer through Merrill Lynch's platform using your external account's routing and account numbers. The account must be verified first, which involves Merrill Lynch depositing two small test amounts for you to confirm.
Will I pay fees to move money between Merrill Lynch and another bank?
No. Merrill Lynch does not charge fees for external transfers. Your external bank may charge a fee for incoming transfers, though most do not. Check with your bank before initiating the transfer if you are unsure.