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 separate high yield savings product. If you hold a Merrill Edge Cash Management Account, your cash balances earn interest through a sweep program that moves your money into money market funds or other short-term investments, rather than a traditional savings account. The rate you earn depends on which sweep option you choose and current market conditions.
If you are looking for a straightforward high yield savings account with a fixed APY, Merrill Edge is not the right place. You would need to open an account at a different bank or online financial institution that specializes in savings products.
Key Takeaways
- Merrill Edge offers cash management through sweep programs, not a high yield savings account with a posted APY.
- Money in your Merrill Edge account can be swept into money market funds or other investments based on your chosen sweep option.
- The rate you earn on swept cash varies with market conditions and depends on which sweep vehicle you select.
- If you want a high yield savings account with a fixed rate, you will need to open an account at a bank that offers that product separately.
How Merrill Edge cash management works instead of a savings account
When you deposit money into a Merrill Edge Cash Management Account, the bank does not hold it in a traditional savings account earning a set APY. Instead, your cash is automatically swept into one of several options you choose at account setup. Common sweep vehicles include money market mutual funds, short-term bond funds, or Bank of America's own deposit products.
The sweep happens daily or periodically depending on your settings. Your money is not sitting idle—it is being invested in instruments designed to earn returns in line with current interest rates. This means your earnings will fluctuate as market rates change, rather than staying fixed at a single APY like a traditional savings account would.
You can change your sweep settings at any time through your Merrill Edge dashboard, but you need to understand what each option invests in before you choose. Some sweeps carry more risk than others, and some are not FDIC insured.
What sweep options typically earn and their trade-offs
Merrill Edge offers several sweep choices, and the rate you earn depends entirely on which one you pick. Money market mutual funds may offer competitive yields during periods of higher interest rates, but they are not FDIC insured and carry a small amount of market risk. Bank of America deposit sweeps, by contrast, are FDIC insured up to the standard limit but may offer lower rates than money market funds.
The actual rates available change based on market conditions and are not posted as a single "APY" the way a high yield savings account would be. You have to log into your account or call Merrill Edge to see what each sweep option is currently earning. This makes it harder to compare Merrill Edge directly to a high yield savings account at another bank, where the rate is usually displayed prominently on the website.
If you want predictability and simplicity, a high yield savings account elsewhere will give you a clearer picture of what you will earn. If you are comfortable with variable returns and want your cash invested rather than parked, Merrill Edge's sweep options may work for you.
Why Merrill Edge uses sweeps instead of a savings account
Merrill Edge is designed primarily for investors and active traders, not as a retail banking alternative. The sweep structure allows the bank to invest your idle cash rather than simply holding it in a low-earning deposit account. This benefits Merrill Edge's business model and can benefit you if market conditions are favorable, but it also means your returns are not may provide.
Bank of America owns Merrill Edge and uses the sweep system to manage cash across its investment platform. If you are a Merrill Edge customer, you likely also have a brokerage account or investment portfolio, and the sweep keeps your uninvested cash working rather than sitting dormant.
Better alternatives if you want a high yield savings account
If your primary goal is to earn a competitive rate on savings with no investment risk and no daily fluctuations, you should open a high yield savings account at an online bank or credit union. Banks like Marcus, Ally, American Express Personal Savings, and others offer FDIC-insured accounts with APYs that are posted clearly and updated regularly. These rates are typically higher than what Merrill Edge's deposit sweep options earn, especially during periods of lower interest rates.
You can open a high yield savings account at a different bank while keeping your Merrill Edge account for investing. There is no rule that says you must use one bank for everything. Many people use a high yield savings account for emergency funds and short-term goals, and a brokerage account like Merrill Edge for longer-term investing.
If you already have a Merrill Edge account and want to move some cash to a higher-earning savings product, you can transfer money out to another bank via ACH transfer or wire. The process usually takes one to three business days.
What to do if you already have a Merrill Edge account
If you are a current Merrill Edge customer and want to earn more on your cash, your options are to adjust your sweep settings to a higher-yielding option (if available), or to move some or all of your cash to a separate high yield savings account elsewhere. Check your current sweep selection first—you may have chosen a conservative option that is earning very little, and switching to a money market fund sweep could improve your returns.
Before you make any changes, log into your Merrill Edge account and review what each sweep option currently pays. You can also call Merrill Edge customer service to ask which sweep vehicle is earning the most right now. They can explain the risks and benefits of each choice so you can decide whether to stay with Merrill Edge or move your money.
Frequently Asked Questions
Can I earn interest on my Merrill Edge checking account?
Merrill Edge does not offer a traditional checking account with interest. If you have a Cash Management Account, your balance is swept into money market funds or other investments based on your sweep selection. The rate you earn depends on market conditions and which sweep option you chose, not on a fixed APY.
Is money in a Merrill Edge sweep FDIC insured?
It depends on the sweep option. If your cash is swept into a Bank of America deposit product, it is FDIC insured up to $250,000. If it is swept into a money market mutual fund, it is not FDIC insured. Check your sweep settings to see which vehicle your cash is in.
How do I change my Merrill Edge sweep option?
Log into your Merrill Edge account online, go to your Cash Management Account settings, and select a different sweep option from the available choices. The change usually takes effect within one business day. You can also call Merrill Edge to make the change over the phone.
Can I move money from Merrill Edge to a high yield savings account?
Yes. You can transfer money out of Merrill Edge to another bank via ACH transfer or wire. ACH transfers are free and usually take one to three business days. Wire transfers are faster but may have a fee. Both options are available through your Merrill Edge account settings.
What is the current APY on Merrill Edge savings?
Merrill Edge does not post a single APY because it does not offer a savings account. The rate you earn on swept cash varies based on which sweep option you selected and current market rates. Log into your account or call Merrill Edge to see what each sweep vehicle is currently earning.