The Merrill Lynch Cash Management Account is a combo of investing and daily cash management. It is offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated. This account links your investment and cash needs all in one spot, making it perfect for those who want to keep an eye on their money and still meet their long-term financial goals.
With this unique account, managing your finances becomes simple. You can invest, pay your bills, write checks, and transfer funds easily. Any money not invested can automatically go into bank deposit programs or eligible money market mutual funds. This depends on what you’re eligible for. Bank of America, N.A., provides banking services and is FDIC insured. However, investment products are not covered by FDIC insurance, might lose value, and are not guaranteed by the bank. Merrill operates as a registered broker-dealer and investment adviser, and is a totally owned subsidiary of Bank of America Corporation.
The account includes several features. You get to write checks, have a Visa deferred debit card from Bank of America, N.A., access to Funds Transfer Service, and can link your statements through MyMerrill. Plus, with digital services like the MyMerrill website and mobile app, you can pay bills and deposit checks online. A basic account costs $125 yearly and $25 for each CMA SubAccount, but these fees can be waived under certain conditions. Customers with at least $250,000 in connected accounts might get extra benefits. These include choice sweep options and up to four free outgoing Fedwire transfers annually. Otherwise, each Fedwire transfer will cost $30.
The CMA works well with Bank of America and Merrill’s larger wealth and asset management approaches. It uses trademarks like Bank of America, the Bull Symbol, Cash Management Account, and others to deliver a simplified way to handle both cash and investments. This is all under one trusted name.
Key Takeaways
- The Merrill Lynch CMA combines investing and daily cash tools in a single brokerage account.
- Banking features are provided by Bank of America, N.A., Member FDIC, while investments are not FDIC insured and may lose value.
- Automatic cash sweep may move uninvested balances to bank deposits or eligible money market mutual funds, based on eligibility.
- Digital access through MyMerrill offers bill pay, mobile check deposit, and statement-linking for streamlined control.
- Standard fees include $125 per CMA and $25 per SubAccount, with potential waivers if you qualify.
- Clients with $250,000 or more in eligible assets may receive enhanced sweep options and limited free Fedwire transfers.
- Part of Merrill’s broader wealth management and asset management ecosystem in the United States.
What is a Merrill Lynch Cash Management Account?
A Merrill Lynch Cash Management Account combines banking tools with a brokerage platform. It lets you manage cash, invest, and pay bills all in one. You can also get advice from financial advisors. This setup is great for people who follow the stock market but also want an easy way to manage their money.
Overview of Cash Management Accounts
This account links your cash and investments within a Merrill brokerage. Your uninvested cash can automatically go into the Merrill Lynch Bank Deposit Program, protected by FDIC insurance. You can also pick from tax-exempt mutual funds or leave your cash uninvested until you’re ready to use it.
Non-U.S. clients have different options, including investments in Ireland or the Dollar Assets Portfolio. Your brokerage securities are protected by SIPC and extra SIPC coverage, while bank deposits have FDIC insurance. This setup is perfect for active investors, including those trading online or working with advisors.
Key Features and Benefits
- Everyday tools: unlimited check writing, a CMA Access Visa deferred debit card, and fraud protection. You’re billed monthly for purchases; larger amounts may be debited sooner by certain rules.
- ATM access: Fee waivers at Bank of America ATMs, no Merrill fee at other ATMs, and up to $200 yearly in surcharge reimbursements. Standard fees for foreign exchange and cash advances apply.
- Money movement: Free Direct Deposit and Funds Transfer Services to and from Merrill and outside accounts, plus four free annual Fedwire transfers for those with $250,000 in qualifying assets; there’s a fee for others.
- Investment access: stocks, bonds, funds, commodities, foreign currencies, and more. You can reinvest dividends for free and set up automatic mutual fund buys.
- Rate linkage: The MLBD Program offers yields based on your total Merrill and Bank of America assets, showing the benefit of linking your accounts.
These benefits match well with how clients keep up with the stock market and make decisions, with or without advisors. They also tie in with investment banking advice for long-term planning.
Comparison with Traditional Checking Accounts
A basic checking account focuses on payments and keeping your cash safe under FDIC. The Merrill Lynch CMA goes further, combining a brokerage with SIPC and excess-SIPC protection. Your cash can earn more because it sweeps daily, and spending is delayed until month’s end.
Unlike many banks, this account skips many common fees and even pays back some ATM charges. However, there’s an annual fee and specific service costs. For those who trade, enjoy online trading, or rely on advisors, this account gives a wider view of cash and investments than typical checking accounts. It suits those interested in the stock and investment banking worlds.
How to Open a Merrill Lynch Cash Management Account
Opening a Merrill Lynch Cash Management Account is great for clients wanting bank and investing features. It helps with managing wealth, planning for retirement, and works with financial services you may already have.
Required Documentation and Eligibility
To get certain benefits, Merrill Lynch might ask for a $250,000 investment relationship. They’ll need your name, email, phone, and ZIP code to talk about financial services. Saying yes to contact lets them reach you for 90 days, even if you opted out before.
What you’re eligible for can change by feature. Getting a Visa card needs a U.S. address. Some options, like tax-free money funds, might need $250,000 in linked assets. People living outside the U.S. have different options and can’t deposit checks with their phones.
Step-by-Step Opening Process
- Start online or talk to a Merrill Lynch rep. If there’s an error, try again or call 800.MERRILL (800.637.7455) or 800.818.8900 from abroad.
- Give your contact info and agree to a chat so a specialist can understand your financial planning needs.
- Pick your account type with your advisor: CMA, CMAT, or CMA SubAccounts. Choose how to manage your cash: MLBD Program, eligible mutual funds, or No Sweep.
- Hand in ID and documents as Merrill asks. Then, get online with MyMerrill.com and their app.
- Add money to your account, start direct deposit and transfers, and look into investing and reinvesting dividends.
- Request a checkbook and the CMA Access Visa card, if you meet the criteria.
- Connect your accounts for one statement and maybe get better interest rates.
Tips for New Customers
- Link Merrill accounts to possibly get better rates in the MLBD Program by showing all your assets.
- Consider CMA SubAccounts for setting aside funds for specific goals. Remember, there’s a $25 yearly fee per SubAccount, and they don’t have check or debit options.
- If you’re managing trusts, CMAT might be a fit, blending cash access with investments. It has a $125 yearly fee and $50 for each CMAT SubAccount.
- Think over sweep options: deposits in Bank of America are covered by FDIC insurance to a limit; money market funds are riskier and not FDIC insured. Choosing No Sweep means you won’t earn interest.
- To handle money better, use MyMerrill for bill payments, eBills, and U.S.-only phone check deposits. Make sure your device supports the app; extra charges might apply.
- When moving big sums, plan with Fedwire in mind. Talk to a Merrill Lynch advisor about other investment options as part of a wider plan.
Accessing and Managing with Merrill Lynch Login
Once your account is active, managing it is easy through the merrill lynch login portal. This secure platform gives you instant access to balances, transfers, investment updates, and account statements. You can log in from your desktop or mobile device via merrill-lynch.live to make transactions, review holdings, or set up automatic transfers.
Through the merrill lynch login, clients can link accounts, schedule bill payments, and even track market activity in real time. It also connects directly with Bank of America accounts for smoother cash flow between banking and investment accounts—ensuring you always stay in control of your finances.
Online Banking and Mobile App Access
Log in at MyMerrill.com to check balances, holdings, make transfers, pay bills, and view statements. The dashboard links with your CMA, showing all your trading and payment activities in one spot.
With the MyMerrill app for iPhone, iPad, and Android, you can watch your accounts, transfer money, and pay bills after signing up online. Deposit checks anytime in the U.S. using a camera-enabled device. It also lets you receive eBills and email reminders for payments.
If you need help quickly, call 800.MERRILL for account info and services. International customers can make collect calls and get help from financial advisors when their needs change.
Withdrawals and Deposits Explained
Cash not invested from deposits or selling securities goes into your Primary Money Account by default. This happens through the Merrill Lynch Bank Deposit Program at Bank of America, N.A. and Bank of America California, N.A. You can choose other options like No Sweep or a money market sweep instead.
Deposits in these banks are safe up to $250,000 per depositor, for each ownership category, at each bank. This total includes other deposits you may have. Sweeping to money market mutual funds and some other choices are not covered by FDIC insurance. These options also have investment risks linked to the stock market and interest rates.
Choosing manual options like the Insured Savings Account gives you FDIC insurance at participating banks. A rep must invest your cash; it’s used automatically to pay debits. You get many ways to access your money, like unlimited check writing, a Visa deferred debit card with consolidated monthly debit, transferring funds, and free Bank of America ATM deposits and withdrawals. Using an ATM outside Bank of America’s network gets you up to $200 back per year in U.S. ATM fees.
Utilizing Additional Services
If you’re in a rush, you can send money via Fedwire. Clients with $250,000 or more in linked accounts get four free wire transfers a year in U.S. dollars. Otherwise, you pay the usual fees. There’s no charge from Merrill for stop-payment orders or handling returned deposits.
Set up Direct Deposit for your paycheck or recurring payments. Monthly statements show your expenses, how your assets are allocated, and your portfolio’s value. Linking statements can combine your accounts into one report, making it easier to discuss your trading plans with financial advisors.
If you have specific financial goals, think about using CMA subaccounts or CMAT Subaccounts to organize your assets. For trusts, a CMAT lets you write checks and use the Visa deferred debit card, if allowed by the trust. This keeps money available and connects you to the stock market through your Merrill Lynch team.
Understanding Fees and Interest Rates
Merrill Lynch explains its fees and interest rates in simple terms. This is key for managing your Cash Management Account’s cash flow. It is important when you use many financial services like asset and investment banking, along with retirement planning. Think about the costs, then balance them with things like liquidity and potential yields.
Common Fees Associated with the Account
The CMA or CMAT charges a $125 yearly fee. SubAccounts for CMA cost $25 a year, while for CMAT, it’s $50. If you move money out via Fedwire, it’s $30 each time. But, if your account holds $250,000 or more, you get four free wires a year in U.S. currency. Fees for stop-payment orders and returned deposits are not charged by Merrill.
There’s no Merrill fee for using non-Bank of America ATMs for withdrawals. Even better, you get up to $200 back each year for ATM fees charged by others in the U.S. You might still pay for foreign exchanges or cash advances. Other service fees could come up, so check your agreement or talk to a Merrill advisor to understand all costs.
Interest Rates and How They Are Determined
The interest rates for various Merrill Lynch programs are set by Bank of America and others. These rates change and are calculated daily. Remember, fees could lower what you earn.
Different asset amounts in your account could lead to better rates through tiering. Some programs, however, don’t use tiering. Being part of certain advisory programs might get you better rates. Money market funds aren’t covered by FDIC and could carry more risk than bank deposits, affecting earnings in asset management and retirement plans.
Strategies to Maximize Your Account Benefits
Link your Merrill accounts to possibly get higher rates based on your total assets. Having over $250,000 gets you free wires yearly and might offer better money market options. Also, using the Visa deferred debit feature can keep your cash earning interest longer each month.
Use Merrill’s no-cost services like stop payments and deposit returns, and get back up to $200 a year for ATM fees. Pick a sweep option that matches your needs and tax situation. FDIC-insured bank deposits offer security up to a limit, while tax-exempt funds might yield more after taxes but come with investment risk. FDIC-insured Savings Accounts could be a good choice. Check your earnings on your statement or MyMerrill.com, and discuss changes with your financial advisor. Deposit programs benefit Merrill’s banks and may pay them, so consider all your options carefully, especially if you’re looking into investment banking or planning for retirement.
FAQ
What is the Merrill Lynch Cash Management Account (CMA)?
The CMA is a type of securities brokerage account. It’s offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated. This account mixes long-term investing with daily cash management. Merrill is a registered broker-dealer, an investment adviser, a Member of SIPC, and fully owned by Bank of America Corporation.
How does the CMA combine investing and day-to-day banking?
This account allows you to invest and also manage your daily finances. It lets you handle bills, deposits, and more. Uninvested money can go into FDIC-insured deposits or eligible money market mutual funds for some clients.
What does “Member SIPC” and “FDIC insured” mean for my CMA?
Your investments in the Merrill brokerage have SIPC protection. They are not like bank deposits. Cash in the Merrill Lynch Bank Deposit Program has FDIC insurance. Remember, investment products are at risk and may lose value.
How does the automatic cash sweep work?
Normally, your uninvested cash goes into the Merrill Lynch Bank Deposit Program. It stays within FDIC limits. There are options for certain money market funds or leaving cash uninvested for clients with more assets.
What are the key features and benefits of the CMA?
The CMA offers unlimited check writing, a Visa deferred debit card, and more. Merrill covers up to $200 in non–Bank of America U.S. ATM fees yearly. You can access various investments like stocks and bonds.
Conclusion
The Merrill Lynch Cash Management Account is an all-in-one financial hub that merges banking convenience with investing power. It provides flexibility, FDIC protection for deposits, SIPC coverage for investments, and direct access to advisors—all through one digital platform. Whether you’re building wealth, managing daily expenses, or planning for retirement, Merrill’s CMA delivers the balance between simplicity and sophistication that modern investors demand.