Merrill Lynch does not offer traditional savings accounts
Merrill Lynch, the investment and wealth management division of Bank of America, does not have a savings account product in the way most banks do. If you hold cash at Merrill Lynch, it sits in a sweep account — an automated holding place that moves your uninvested money into interest-bearing vehicles based on your account type and settings. The interest rate and terms depend on which sweep option your account uses, not on a savings account you choose from a menu.
This matters because sweep accounts work differently than savings accounts at traditional banks. You do not open a separate account or move money into savings yourself. Instead, any cash in your Merrill Lynch brokerage account that is not invested in stocks, bonds, or funds automatically goes into a sweep vehicle. The rate you earn, the FDIC protection you have, and how quickly you can access the money all depend on which sweep option is active on your account.
Key Takeaways
- Merrill Lynch uses sweep accounts to hold uninvested cash, not traditional savings accounts, and the interest rate depends on your sweep option.
- Core Sweep and Merrill Lynch Bank Sweep are the two main options, with different rates and FDIC coverage limits.
- You can change your sweep option through your account settings, but the change takes effect only on new deposits or when you move money into cash.
- If you want a traditional savings account with a fixed rate and FDIC protection, you would need to open one at Bank of America or another bank separately.
How Merrill Lynch sweep accounts work
When you deposit money into a Merrill Lynch brokerage account and do not invest it, the cash automatically moves into a sweep vehicle overnight or within a few business days. You do not have to do anything — it happens by default. The sweep account holds the money and earns interest until you either invest it or withdraw it.
Merrill Lynch offers two main sweep options: Core Sweep and Merrill Lynch Bank Sweep. Core Sweep typically invests your cash in money market funds, which means the rate fluctuates with market conditions and is not FDIC insured. Merrill Lynch Bank Sweep deposits your cash into Bank of America deposit products, which means it earns a fixed rate and is FDIC insured up to the standard limit of $250,000 per depositor per bank.
Your account is set to one sweep option by default, but you can change it through your account settings online or by calling Merrill Lynch. The change applies to new cash deposits going forward — money already in your current sweep does not automatically move to the new option unless you manually transfer it.
Interest rates and FDIC protection on Merrill Lynch sweep accounts
Interest rates on Merrill Lynch sweep accounts vary based on market conditions and which sweep option you use. Core Sweep rates track money market fund yields, which change daily. Merrill Lynch Bank Sweep rates are set by Bank of America and typically change less frequently, though they still move with broader interest rate trends.
FDIC protection also depends on your sweep option. Core Sweep money market funds are not FDIC insured — your principal is at risk if the fund loses value, though this is rare. Merrill Lynch Bank Sweep deposits are FDIC insured up to $250,000 per depositor per bank. If you have more than $250,000 in sweep deposits, the amount over that limit is not insured.
You can see your current sweep option and its rate in your Merrill Lynch account dashboard. Rates are not may provide and change based on market conditions, so check your account regularly if you want to know what you are earning.
How to access your cash in a Merrill Lynch sweep account
Money in a Merrill Lynch sweep account is accessible, but the speed depends on which sweep option you use and how you withdraw it. If you transfer cash to your linked bank account, the transfer usually takes one to three business days. If you write a check from your Merrill Lynch account (if that option is available on your account type), the check clears like any other check.
Core Sweep money market funds may have restrictions on how often you can withdraw or transfer money — some funds limit you to a certain number of transactions per month. Merrill Lynch Bank Sweep deposits have no such restrictions because they are held in a bank deposit account.
If you need cash urgently, confirm your sweep option first. If you are in Core Sweep and the fund has transaction limits, you may need to wait until the next month to move all the money you want, or you can call Merrill Lynch to discuss other options.
Opening a traditional savings account if you want one
If you want a true savings account with a fixed rate, FDIC protection, and no investment risk, you have two options: open a savings account at Bank of America (which owns Merrill Lynch) or open one at another bank entirely.
Bank of America savings accounts are separate from Merrill Lynch brokerage accounts. You can open one through Bank of America's website or at a branch, and you can link it to your Merrill Lynch account for easy transfers. The rate and terms are set by Bank of America, not Merrill Lynch, and are FDIC insured.
You can also open a savings account at any other bank — online banks, credit unions, or traditional banks. Some online banks offer higher rates than Bank of America or Merrill Lynch sweep accounts. If you choose this route, you can still keep your Merrill Lynch brokerage account and transfer money between them as needed.
Comparing Merrill Lynch sweep accounts to other options
| Account Type | Interest Rate | FDIC Insured | Access Speed | Best For |
|---|---|---|---|---|
| Merrill Lynch Core Sweep | Varies with money market funds | No | 1–3 business days | Investors who want market-linked returns |
| Merrill Lynch Bank Sweep | Fixed rate set by Bank of America | Yes, up to $250,000 | 1–3 business days | Investors who want safety and FDIC coverage |
| Bank of America Savings Account | Fixed rate set by Bank of America | Yes, up to $250,000 | Immediate (same bank) | People who want a separate savings account |
| Online Bank Savings Account | Often higher than traditional banks | Yes, up to $250,000 | 1–3 business days | People prioritizing higher rates |
The choice depends on what you need. If you are a Merrill Lynch investor and want your cash to stay in your brokerage account, Merrill Lynch Bank Sweep gives you FDIC protection without moving money elsewhere. If you want a higher rate or prefer to keep savings separate from investments, an online bank savings account may be a better fit.
Frequently Asked Questions
Can I earn interest on cash in my Merrill Lynch account without investing it?
Yes. Your cash automatically goes into a sweep account that earns interest. The rate depends on your sweep option — Core Sweep rates track money market funds, while Merrill Lynch Bank Sweep rates are set by Bank of America. You do not have to do anything to earn interest; it happens automatically.
Is my money in a Merrill Lynch sweep account FDIC insured?
It depends on your sweep option. Core Sweep money market funds are not FDIC insured. Merrill Lynch Bank Sweep deposits are FDIC insured up to $250,000 per depositor per bank. Check your account settings to see which sweep option you are using.
How do I change my sweep option?
Log into your Merrill Lynch account online, go to your account settings, and look for sweep or cash management options. You can change your sweep option there. The change applies to new deposits going forward, not to money already in your current sweep.
Can I withdraw money from my Merrill Lynch sweep account anytime?
Yes, but the speed depends on your sweep option and how you withdraw. Transfers to a linked bank account usually take one to three business days. Core Sweep money market funds may have limits on how many times you can withdraw per month, while Merrill Lynch Bank Sweep has no such restrictions.
What if I have more than $250,000 in my Merrill Lynch Bank Sweep account?
Only the first $250,000 is FDIC insured. Any amount over that limit is not insured. If you regularly hold more than $250,000 in cash, ask Merrill Lynch about options to spread your deposits across multiple FDIC-insured accounts or consider a different strategy.