Cashing In On Investments: A Meryl Lynch Guide

Merrill Lynch offers a Cash Management Account (CMA), which combines cash management and brokerage investing capabilities in a single account. This allows customers to manage their day-to-day expenses and long-term investments in one place. With a CMA, customers can deposit or withdraw money through various methods, such as Direct Deposit, Bank of America ATMs, and online or mobile banking. Additionally, CMA holders can earn interest on their cash through the Merrill Lynch Bank Deposit Program, which also provides FDIC insurance up to standard limits.

Cash Management Account® (CMA®)

The Cash Management Account® (CMA®) from Merrill Lynch offers a convenient way to manage your cash and investments in a single account. This account provides flexibility by giving you access to both cash management and brokerage investing capabilities, allowing you to handle everyday transactions and long-term investments in one place.

With the CMA® account, you can take care of day-to-day expenses such as bill payments and larger purchases using check writing, a Visa® deferred debit card, and Bill Pay services. At the same time, you can access a broad range of investment products and services to support your long-term investment goals.

The CMA® account also offers various options for depositing and withdrawing funds, including Direct Deposit, Bank of America ATMs, telephone or online funds transfer, and FedWire® wire transfer. Additionally, you can easily transfer funds between linked accounts using the MyMerrill and Bank of America online banking or mobile app.

Your assets in the CMA® account are protected by the Securities Investor Protection Corporation (SIPC), providing account protection of up to $500,000 per client, with a $250,000 limit for cash. Furthermore, deposits made through the Merrill Lynch Bank Deposit Program are FDIC-insured up to the standard maximum deposit insurance amount.

When it comes to earning interest, the CMA® account offers the Merrill Lynch Bank Deposit Program, which allows you to earn interest on your cash holdings with the added protection of FDIC insurance. You can also explore other options by speaking with a Merrill advisor to find the best way to grow your cash portfolio.

Merrill Lynch Bank Deposit Program (MLBDP)

The Merrill Lynch Bank Deposit Program (MLBDP) is a convenient way to earn interest on cash with the added protection of the Federal Deposit Insurance Corporation (FDIC) up to standard limits. This program allows you to place uninvested cash on deposit with Bank of America, N.A., and/or Bank of America California, N.A. (Merrill Affiliated Banks).

The MLBDP is available through eligible Merrill accounts, such as the Cash Management Account® (CMA®), which combines cash management and investment services in one account. With a CMA®, you can manage everyday financial needs and support long-term investment goals. It offers check writing, a Visa® deferred debit card, and Bill Pay services for day-to-day transactions, while also providing access to a broad range of investment products and services for your long-term investments.

The CMA® provides various options to earn interest on your cash holdings. In addition to the MLBDP, you can explore Brokered Certificates of Deposit and Money Market Mutual Funds. The MLBDP specifically offers FDIC protection on deposits at Bank of America, N.A., and Bank of America California, N.A., ensuring your deposits are secure up to the applicable standard maximum deposit insurance amount (SMDIA).

To learn more about the MLBDP and how it can fit into your financial strategy, it is recommended to speak with a Merrill advisor, who can provide personalized guidance and help you make informed financial decisions.

Brokered Certificates of Deposit

A certificate of deposit is a type of deposit account that is payable at the end of a specified amount of time, known as the term. CDs generally pay a fixed rate of interest and can offer a higher interest rate than other types of deposit accounts, depending on the market. CDs typically provide security for longer-term savings and no monthly fees, but access to funds is restricted.

CDs are available with terms ranging from 28 days to 10 years. The minimum opening deposit for a CD is $250,000. Deposits are insured by the FDIC for up to $250,000 per depositor. An early withdrawal penalty applies to any withdrawal outside of the grace period, which begins on the maturity date of the CD.

Money Market Mutual Funds

You can place trades on money market mutual funds online. To do so, select "Mutual Funds" from the "Trade" tab dropdown menu and then enter the fund symbol you are interested in. Many of these are institutional-class shares, but Merrill now allows access with a minimum investment of only $1.

• BlackRock Liquid Federal Trust Fund – Institutional Class (TFFXX) - SEC yield of 5.17% as of May 15, 2024.
• BlackRock Liquidity Funds: TempCash Fund – Institutional Class (TMCXX) - SEC yield of 5.32% as of May 15, 2024.
• BlackRock Liquidity Funds: Treasury Trust – Institutional Class (TTTXX) - SEC yield of 5.18% as of May 15, 2024.

It is important to note that money market mutual funds cannot be set as an automatic sweep; you must manually move money in and out of the product. Additionally, if you want to buy new shares of stock, you will need to first put in an order to sell your money market mutual fund shares into cash to have the funds available.

Bank of America integration

Bank of America offers a range of investment services through its Merrill Lynch subsidiary. Merrill Lynch provides investment insights and guidance to help simplify your financial life. By linking your Bank of America and Merrill Edge investment accounts, you can easily transfer funds between eligible accounts, view your account balances on both websites, and quickly switch between the two platforms without having to log in separately.

Merrill Edge Investment Accounts

With a Merrill Edge account, you gain access to a full range of investments, easy-to-use tools, independent research, and one-on-one guidance. There is no minimum balance or trade minimum required to open an investment account with Merrill Edge, making it accessible to a wide range of clients.

Merrill Lynch Credit Cards

Merrill Lynch also offers credit cards to help manage your spending, meet liquidity needs, and achieve your financial goals. The MERRILL+ Visa Signature credit card is a premier card with specialized servicing, robust benefits, and flexible rewards. Cardholders can earn points through the Beyond Rewards program, which can be redeemed for travel, gift cards, or cash back. Additionally, cardholders receive preferred pricing and special offers as they progress through the Status Levels.

Merrill Portfolios

Bank of America, through Merrill, offers income-focused portfolios designed to provide predictable income for retirees over a 25-year period. These portfolios provide seamless integration with recurring distributions into a Bank of America checking account or another bank or investment account of the client's choosing. This integration also extends to the client's broader Bank of America and Merrill relationship. To fund an income-focused portfolio, clients must have a minimum of $50,000 in assets.

Merrill Guided Investing

Merrill Guided Investing is an online investment advisory program that combines online investing with a professionally managed portfolio. This platform provides investors with personalized investment strategies and guidance to help them make more informed and confident decisions throughout their financial journey.

By leveraging the integration between Bank of America and Merrill Lynch, clients can benefit from simplified financial management, convenient account access, and a comprehensive range of investment products and services.

Frequently asked questions