Merrill Edge - cash management solutions

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ma21n2
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Joined: Fri Sep 28, 2018 9:25 pm

Merrill Edge - cash management solutions

Post by ma21n2 » Wed Mar 06, 2019 2:03 pm

I recently opened a Merrill Edge account. I don't have a lot of cash in it, but as I understand it, if you don't do anything, you earn no interest. I do want to earn at least something for the cash I expect to receive from cash that ETFs generate.

From reading other posts, it sounds like BIF Money Market fund was the best option as a sweep fund, but it's no longer offered.

I clicked on Deposit Account & Money Fund Rates link on the bottom of Merrill Edge website, which gave me this: https://olui2.fs.ml.com/Publish/Content ... eSheet.pdf (showing rates as of March 5, 2019).

I don't want to have to buy and sell money market funds w/the cash balance. Just want it to be automatic. In that case, for <$1000 cash balance I expect to have, Merrill Lynch Bank Deposit Program - Tier 1 with 0.14% APY seems to be really the only option. Do you agree? Thanks!

Watts
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Location: Texas

Re: Merrill Edge - cash management solutions

Post by Watts » Wed Mar 06, 2019 4:41 pm

If you can start with an initial deposit of $100K, you can put the money in Merrill Preferred Deposit, which is FDIC insured and has an interest rate of 2.07%. There is a $100K minimum initial deposit, but you can maintain a balance less than that after the initial deposit.

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tfb
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Re: Merrill Edge - cash management solutions

Post by tfb » Wed Mar 06, 2019 5:37 pm

ma21n2 wrote:
Wed Mar 06, 2019 2:03 pm
I do want to earn at least something for the cash I expect to receive from cash that ETFs generate.
You can fill out a form and have all dividends automatically transferred to an external bank account, which can be your online high yield savings account at Ally, etc.
Harry Sit, taking a break from the forums.

ShadowRegent
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Re: Merrill Edge - cash management solutions

Post by ShadowRegent » Wed Mar 06, 2019 5:40 pm

Watts wrote:
Wed Mar 06, 2019 4:41 pm
If you can start with an initial deposit of $100K, you can put the money in Merrill Preferred Deposit, which is FDIC insured and has an interest rate of 2.07%. There is a $100K minimum initial deposit, but you can maintain a balance less than that after the initial deposit.
I believe you need to call to buy and sell Preferred Deposit. It's really not ideal. I'm in the process of moving my checking from a Merrill Edge CMA because they discontinued the money market sweep option.

Watts
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Location: Texas

Re: Merrill Edge - cash management solutions

Post by Watts » Wed Mar 06, 2019 7:47 pm

ShadowRegent wrote:
Wed Mar 06, 2019 5:40 pm
Watts wrote:
Wed Mar 06, 2019 4:41 pm
If you can start with an initial deposit of $100K, you can put the money in Merrill Preferred Deposit, which is FDIC insured and has an interest rate of 2.07%. There is a $100K minimum initial deposit, but you can maintain a balance less than that after the initial deposit.
I believe you need to call to buy and sell Preferred Deposit. It's really not ideal. I'm in the process of moving my checking from a Merrill Edge CMA because they discontinued the money market sweep option.
Yes, that's correct, but it doesn't take long to add to or remove from Preferred Deposit over the telephone. The telephone wait is practically nonexistent and it takes less than a few minutes to place an order.

Longtermgrowth
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Re: Merrill Edge - cash management solutions

Post by Longtermgrowth » Thu Mar 07, 2019 4:14 am

Watts wrote:
Wed Mar 06, 2019 7:47 pm
ShadowRegent wrote:
Wed Mar 06, 2019 5:40 pm
Watts wrote:
Wed Mar 06, 2019 4:41 pm
If you can start with an initial deposit of $100K, you can put the money in Merrill Preferred Deposit, which is FDIC insured and has an interest rate of 2.07%. There is a $100K minimum initial deposit, but you can maintain a balance less than that after the initial deposit.
I believe you need to call to buy and sell Preferred Deposit. It's really not ideal. I'm in the process of moving my checking from a Merrill Edge CMA because they discontinued the money market sweep option.
Yes, that's correct, but it doesn't take long to add to or remove from Preferred Deposit over the telephone. The telephone wait is practically nonexistent and it takes less than a few minutes to place an order.
I was told when questioing the end of bif money fund, that they would come up with something between the grace period that the bank sweep pays 1.6% for the 6 months after the bif money fund drop.
They don't have much longer to come up with a sweep option, but preferred deposit as a sweep fund was mentioned as a possibility to me. Now if they would only follow through with that, even though the interest is nowhere near Vanguard's money market...

boogiehead
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Re: Merrill Edge - cash management solutions

Post by boogiehead » Wed May 22, 2019 3:51 pm

Watts wrote:
Wed Mar 06, 2019 7:47 pm
ShadowRegent wrote:
Wed Mar 06, 2019 5:40 pm
Watts wrote:
Wed Mar 06, 2019 4:41 pm
If you can start with an initial deposit of $100K, you can put the money in Merrill Preferred Deposit, which is FDIC insured and has an interest rate of 2.07%. There is a $100K minimum initial deposit, but you can maintain a balance less than that after the initial deposit.
I believe you need to call to buy and sell Preferred Deposit. It's really not ideal. I'm in the process of moving my checking from a Merrill Edge CMA because they discontinued the money market sweep option.
Yes, that's correct, but it doesn't take long to add to or remove from Preferred Deposit over the telephone. The telephone wait is practically nonexistent and it takes less than a few minutes to place an order.
Just a fyi I spoke with a representative and he told me that the ability to move the funds electronically should be coming soon some time in the summer.

MotoTrojan
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Re: Merrill Edge - cash management solutions

Post by MotoTrojan » Wed May 22, 2019 5:43 pm

Vanguard or Fidelity wouldn’t have this problem.

Bobby206
Posts: 154
Joined: Fri Oct 05, 2018 4:01 pm

Re: Merrill Edge - cash management solutions

Post by Bobby206 » Thu May 23, 2019 11:59 am

That 2.07 option sounds good. Anybody know of a good option B if we have more than $250k in that 2.07 option?

Bobby206
Posts: 154
Joined: Fri Oct 05, 2018 4:01 pm

Re: Merrill Edge - cash management solutions

Post by Bobby206 » Thu May 23, 2019 1:00 pm

The Preferred Deposit 2.07% is not available on retirement accounts I am told. Bummer as it sounded good.

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