Merrill Lynch does not offer a standalone high yield savings account
Merrill Lynch, the investment and wealth management division of Bank of America, does not market or sell a dedicated high yield savings account product. If you hold cash at Merrill Lynch, it sits in a sweep account — money moves automatically into a money market fund or other vehicle based on your account type and settings, not into a savings account earning a published APY.
This matters because sweep rates change without notice and are typically lower than what you would earn in a high yield savings account at an online bank. Merrill Lynch's sweep options are designed for investors who need a place to park cash between trades or hold a portion of their portfolio in liquid form, not for someone whose primary goal is earning interest on savings.
Key Takeaways
- Merrill Lynch uses automatic sweep accounts for cash holdings, not high yield savings accounts, and sweep rates are set by Merrill Lynch and vary by account type.
- Cash sweep options at Merrill Lynch typically earn less than high yield savings accounts at online banks, which currently range from 4% to 5% APY depending on the bank.
- If you want to earn a higher rate on savings held at Merrill Lynch, you can transfer money to a Bank of America savings account and link it to your Merrill Lynch brokerage.
- Merrill Lynch cash management is built for investors managing a portfolio, not for people whose main need is a high-rate savings vehicle.
How Merrill Lynch handles cash in your account
When you deposit money into a Merrill Lynch brokerage account and do not immediately invest it, the cash goes into a sweep account. The sweep automatically moves your money into a money market fund, a Bank of America savings account, or another cash equivalent based on your account settings and Merrill Lynch's current offerings.
You do not choose a high yield savings account as your sweep destination. Instead, Merrill Lynch decides which vehicles are available and sets the rates. The rate you earn depends on which sweep option is active for your account — and Merrill Lynch can change these options and rates at any time without advance notice.
This structure exists because Merrill Lynch is primarily a brokerage and investment platform. The cash management feature is secondary to trading and portfolio management. If you want a savings account with a may provide, published APY, you need to open one separately.
What rates you actually earn on Merrill Lynch cash
Merrill Lynch does not publish a single APY for cash holdings the way a bank publishes a savings account rate. Instead, the rate depends on which sweep vehicle holds your money at any given time. Money market funds have yields that fluctuate daily. Bank of America savings accounts linked to your Merrill Lynch account earn the Bank of America savings rate, which is typically much lower than high yield savings rates elsewhere.
As of early 2024, Bank of America savings accounts earn around 0.01% APY on standard savings. High yield savings accounts at online banks earn between 4% and 5% APY. The difference on $10,000 is roughly $400 to $500 per year — a real gap if savings is your goal.
Money market funds held in your Merrill Lynch sweep may earn slightly more than a Bank of America savings account, but rates still lag behind dedicated high yield savings accounts. You would need to check Merrill Lynch's current sweep options to see what is available for your specific account type.
How to earn a higher rate if you bank with Merrill Lynch
If you want to keep your money at Bank of America while earning a higher rate, open a Bank of America high yield savings account separately. Bank of America does offer a high yield savings product, though the rate is still lower than what online banks pay. You can then transfer money between your Merrill Lynch brokerage and your Bank of America savings account as needed.
This approach keeps everything within the Bank of America ecosystem, so transfers are instant and free. However, Bank of America's high yield rate is still lower than rates at online banks like Marcus, Ally, or American Express Personal Savings. If your priority is maximizing interest earned on savings, moving money to an online bank's high yield account will earn you more.
Another option: keep a small amount in your Merrill Lynch sweep for immediate access to cash for trades or emergencies, and move the bulk of your savings to a high yield account elsewhere. This gives you the best of both — quick access to trading cash and a higher rate on the money you are not actively investing.
Why Merrill Lynch does not compete on savings rates
Merrill Lynch's business model is built on investment management and trading, not on attracting deposits the way a retail bank does. High yield savings accounts are a loss leader for online banks — they use low rates on deposits to fund lending and other operations. Merrill Lynch has no incentive to offer a competitive savings rate because its customers are investors, not savers looking for the best APY.
If you are a Merrill Lynch customer primarily because you invest there, the cash sweep is a convenience feature, not a savings product. If you are there because you want a high rate on savings, Merrill Lynch is not the right place. The two goals — investing and high-yield savings — are better served by separate accounts at separate institutions.
Comparing your options for cash at Merrill Lynch
| Option | Rate (approximate) | How to access | Best for |
|---|---|---|---|
| Merrill Lynch money market sweep | 0.5% to 1.5% (varies) | Automatic; set in account settings | Investors who need liquid cash for trades |
| Bank of America savings (linked to Merrill Lynch) | 0.01% to 0.05% | Transfer from Merrill Lynch brokerage | Keeping money within Bank of America ecosystem |
| Bank of America high yield savings | 4% to 4.5% (varies) | Separate account; transfer from Merrill Lynch | Earning more than standard Bank of America rates |
| Online bank high yield savings (Marcus, Ally, etc.) | 4% to 5.5% (varies) | Separate account; ACH transfer from Merrill Lynch | Maximizing interest on savings |
Frequently Asked Questions
Can I move my Merrill Lynch cash to a high yield savings account?
Yes. You can transfer money from your Merrill Lynch brokerage account to any bank account you own via ACH transfer. The transfer typically takes one to three business days. Once the money is in a high yield savings account at an online bank or Bank of America, it earns that account's APY instead of your Merrill Lynch sweep rate.
What happens to my cash if I do not set up a sweep option?
Merrill Lynch will automatically place your cash into a default sweep vehicle if you do not choose one. The default is usually a money market fund or Bank of America savings account. You can log into your account and change the sweep settings to a different option if you want, but you cannot opt out of a sweep entirely — cash must go somewhere.
Does Merrill Lynch charge fees to transfer money out?
No. Merrill Lynch does not charge a fee to transfer money from your brokerage account to an external bank account via ACH. The transfer is free, though it takes a few business days to complete. Your receiving bank may charge a fee, but that is rare for standard ACH transfers.
Will moving my savings to another bank affect my Merrill Lynch investments?
No. Your brokerage account and your savings account are separate. Moving cash out of your Merrill Lynch sweep does not affect any stocks, bonds, or funds you hold in the account. You can keep your investments at Merrill Lynch and move only the cash portion to earn a higher rate elsewhere.
Is the money in a Merrill Lynch sweep account FDIC insured?
It depends on the sweep vehicle. If your cash is in a Bank of America savings account sweep, it is FDIC insured up to $250,000 per account holder. If it is in a money market fund, it is not FDIC insured — it is a mutual fund investment. Check your account settings or contact Merrill Lynch to confirm which sweep option is currently active for your account.