Merrill Lynch does not offer traditional savings accounts
Merrill Lynch, which is owned by Bank of America, is an investment and wealth management firm, not a retail bank. They do not offer the kind of savings account you would use to set aside money and earn interest on it. If you are looking for a place to keep emergency savings or money you do not plan to invest, you will need to open an account at a different institution.
Merrill Lynch does offer something called a cash management account, which functions differently from a savings account. This account holds uninvested money and pays interest, but it is designed for people who are actively investing and need a place to park cash between trades. It comes with higher minimum balances and is built into their investment platform.
Key Takeaways
- Merrill Lynch is an investment firm owned by Bank of America, not a retail bank that offers savings accounts.
- Their cash management accounts are for investors who need to hold money between trades, not for everyday savings.
- If you want a savings account, you can open one at Bank of America itself or at another bank entirely.
- Bank of America savings accounts are separate from Merrill Lynch accounts and require a different process.
What Merrill Lynch actually offers instead
Merrill Lynch's main products are investment accounts — brokerage accounts where you buy stocks, bonds, mutual funds, and other securities. They also manage wealth for high-net-worth clients and offer retirement accounts like IRAs and 401(k) rollovers. None of these are savings accounts in the traditional sense.
If you have money sitting in a Merrill Lynch investment account that you are not currently investing, it will typically sit in a money market fund or a sweep account. These pay some interest, but they are not the same as a savings account. The interest rates and terms depend on what Merrill Lynch offers at any given time, and the money is still technically part of your investment account.
How Bank of America savings accounts work (Merrill Lynch's parent company)
Because Merrill Lynch is owned by Bank of America, you might think you could open a savings account through Merrill Lynch and have it be a Bank of America account. That is not how it works. Bank of America and Merrill Lynch are separate divisions. You would need to go to Bank of America directly to open a savings account there.
Bank of America offers several types of savings accounts with different features and minimum balance requirements. You can open one online, by phone, or at a branch. The account is separate from any Merrill Lynch investment account you might have, even though both are ultimately owned by the same parent company.
When you might use a Merrill Lynch cash management account
A cash management account at Merrill Lynch makes sense if you are an active investor who needs a place to hold money between trades. For example, if you sell some stock and want to wait a few days before buying something else, the cash sits in the account and earns interest in the meantime. The account is integrated with your brokerage platform, so you can move money in and out easily.
These accounts typically require a minimum balance — often $25,000 or more, though this can vary. If you have a smaller amount to save and are not planning to invest, a regular savings account at a bank is a better fit. You will have lower minimums, simpler access to your money, and clearer terms about how much interest you will earn.
Where to open a savings account if you want one
If you need a savings account, you have several options. You can open one at Bank of America, which has branches nationwide and online banking. You can also open one at any other bank — credit unions, online banks, or regional banks all offer savings accounts. The choice depends on what matters to you: branch access, interest rates, fees, or customer service.
When you are comparing savings accounts, look at the interest rate (how much you earn on your money), any monthly fees, the minimum balance required to open the account, and how you can access your money. Some online banks offer higher interest rates because they have lower overhead costs. Some banks waive fees if you keep a certain balance or set up direct deposit.
The difference between a savings account and an investment account
A savings account is meant to hold money safely and earn a small amount of interest. Your money is insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000, which means if the bank fails, your money is protected. You can withdraw your money whenever you need it, though some accounts limit how many withdrawals you can make per month.
An investment account like those at Merrill Lynch is meant for buying and selling securities — stocks, bonds, mutual funds, and similar products. The value of your money goes up and down based on what you invest in. Investment accounts are not FDIC insured, so if the value of your investments drops, you lose money. They are designed for money you do not need right away and are willing to take some risk with.
Merrill Lynch is built for the second type. If you need the first type, you need a bank.
Frequently Asked Questions
Can I open a Bank of America savings account through Merrill Lynch?
No. Merrill Lynch and Bank of America are separate divisions. You would need to go to Bank of America directly — either online, by phone, or at a branch — to open a savings account. You cannot do it through Merrill Lynch.
Is money in a Merrill Lynch cash management account insured?
Cash management accounts at Merrill Lynch are typically held in money market funds or sweep accounts, which are not FDIC insured. If you need FDIC insurance on your savings, you need a bank savings account, not a Merrill Lynch account.
What happens to cash I have sitting in my Merrill Lynch investment account?
Cash that is not invested is usually swept into a money market fund or money market sweep account automatically. This earns some interest, but the rate and terms depend on what Merrill Lynch offers. It is not the same as a savings account.
Can I transfer money from a Merrill Lynch account to a savings account?
Yes. You can withdraw money from your Merrill Lynch account and transfer it to a savings account at another bank. The process typically takes a few business days. Contact Merrill Lynch directly for instructions on how to set up the transfer.
Do I need to be an investor to have a Merrill Lynch account?
Merrill Lynch accounts are designed for investing. If you do not plan to invest, a regular bank savings account is a better fit for your needs and will be simpler to use.