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What is a Merrill Lynch Cash Management Account?
Merrill Cash Management Account helps manage your long-term financial goals, investments, and daily finances. It would help if you took care of daily transactions with check writing, Bill Pay services, and aVisa® Deferred debit card while keeping your investments on track with access to various investment services and products in a single account.
Merrill Lynch Bank Deposit Program
A bank deposit is the most convenient way to earn cash interest with the added protection of FDIC insurance up to standard limits. Uninvested cash is placed on deposit with Bank of America, California, N.A (Merrill Affiliated Banks), or Bank of America, N.A.
Money Market Mutual Funds
Merrill Lynch Money Market Funds are highly liquid cash investments that include U.S. Treasuries and other lower-risk and highly liquid securities.
Brokered Certificate of Deposit
The Merrill account holds a wide range of certificates of deposit issued by savings associations or banks, paying periodic interest for a particular time frame.
Preferred Deposit
Bank deposit solutions are provided via eligible Merrill accounts, which could help manage cash flow and daily expenses by keeping deposits with BoA, N.A.
Check Writing and ATM Privileges
CMAs are fabricated to offer fund accessibility while also providing brokerage investing capabilities, and Merrill Lynch is one of the cash management accounts that offer that cash access.
It comes with check writing and a Visa deferred debit card. The deferred debit card is a card that you can use to make any purchase, and the amount will not be debited from your account balance immediately.
You can use Bank of America’s ATMs at no charge. There are around 15,000 ATMs. Moreover, if you leverage an out-of-network ATM, you can get an ATM reimbursement of $200 in a year. You’ll also get access to the Bill Pay option, which is not provided to every other CMA.
Earning Opportunities
The Merrill Lynch Cash Management Account provides several ways to earn interest on account balances, like the Merrill Lynch Bank Deposit Program (MLBDP). MLBDP is the most convenient way to get interest on cash held in the program with FDIC protection.
Merrill Lynch Cash Management Account Interest Rate
| Tier | Eligible Statement-linked Assets | APY(%) |
| 1 | Less than $250,000 | 0.01% |
| 2 | $250,000 – $999,999 | 0.02% |
| 3 | $1,000,000 – $9,999,999 | 0.03% |
| 4 | $10 million or more | 0.05% |
Merrill Lynch Cash Management Account Fees
- Merrill Lynch: Investment minimum $250,000
- Money market funds 0.40% service fees
- No annual account fees
Pros and Cons of Merrill Lynch Cash Management Account
Pros
- Transparent fees
- Offers both in-person and online financial advice
- No annual account fees
- Competitive yield that helps in cash optimization
- Check Writing Privileges
- ATM reimbursement of $200 a year
- Deferred debit card purchases
Cons
- Management fees are higher than most of the accounts: 0.45%
- Not every advisor provides all the services
- Requires two stipulations to waive fee
- $30 nonsufficient funds fee
- $125 annual fee
- Less FDIC-insured
Want to learn more about all the best cash management accounts available in the USA? We have a detailed guide on it.
What’s Left Now?
The Merrill Lynch Cash Management Account offers its customers several unique features, benefits, and services, including the Merrill Lynch Bank Deposit Program, Check writing and ATM Privileges, money market mutual funds, and more.
The main green flag of this CMA is that it has no annual account fees, which compels and allures you to sign up for it.
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Happy Investing!
