Do you have funds sitting idle in your Merrill Edge account, earning a basic sweep rate, and you're looking for a way to potentially earn a more competitive yield on your cash? Perhaps you've recently sold an asset, received a large bonus, or are simply accumulating cash for a future major purchase and want your money to work harder for you. If so, then understanding how to put your money into a Merrill Edge Preferred Deposit® account might be exactly what you need!
The Merrill Edge Preferred Deposit program is a bank deposit solution designed to offer competitive interest rates on your cash balances, providing both security and convenience. It's a great option for those who want to maintain liquidity while earning a better return than traditional sweep options.
This comprehensive guide will walk you through the process, step-by-step, to help you navigate putting money into your Merrill Edge Preferred Deposit. Let's get started!
A Comprehensive Guide: How to Put Money in Merrill Edge Preferred Deposit
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| How To Put Money In Preferred Deposit Merrill Edge |
Step 1: Understand What Preferred Deposit Is and If It's Right for You
Before you initiate any transfer, it's crucial to understand what Preferred Deposit is and whether it aligns with your financial goals.
What is Merrill Edge Preferred Deposit?
The Preferred Deposit program is a bank deposit solution offered through eligible Merrill brokerage accounts. Your cash is placed with Bank of America, N.A., and potentially other participating banks, offering you FDIC insurance up to applicable limits. This is different from money market mutual funds, which are investment products and not FDIC insured.
Key Features to Consider:
Competitive Yields: Preferred Deposit aims to offer a more competitive Annual Percentage Yield (APY) compared to standard sweep options. The rate is variable and can change.
FDIC Insurance: Your funds are protected by FDIC insurance up to the standard limits, typically $250,000 per depositor, per insured bank, for each account ownership category. This provides a layer of security for your principal.
Liquidity and Accessibility: While it offers a higher yield, it's designed to provide relatively easy access to your funds for your everyday needs or other investment opportunities.
Consolidated View: Your Preferred Deposit balance and performance information are integrated into your Merrill account statements, giving you a holistic view of your assets.
Is it Right for You?
Consider Preferred Deposit if you:
Have a significant cash balance (the minimum initial deposit is typically $100,000).
Desire a higher interest rate on your cash than traditional savings or sweep accounts.
Prioritize FDIC insurance for your cash holdings.
Need ready access to your funds, though possibly not immediate real-time access like a checking account.
Want to optimize cash for future large purchases, emergency funds, or other short-to-medium term goals.
If you're unsure, it's always a good idea to speak with a Merrill financial advisor to determine if Preferred Deposit aligns with your individual financial strategy.
Tip: Look for small cues in wording.
Step 2: Ensure You Have an Eligible Merrill Edge Account
Preferred Deposit is offered through specific Merrill brokerage accounts. Most commonly, it's associated with a Merrill Cash Management Account (CMA) or other eligible Merrill investment accounts.
Check Your Account Type:
Log in to your Merrill Edge account online.
Navigate to your account summary or details.
Verify that your account type is one that supports Preferred Deposit. If you're unsure, or you have a different type of Merrill account, you might need to contact Merrill Edge client services.
If You Don't Have an Eligible Account:
If your current Merrill Edge account isn't eligible, or you don't yet have a Merrill Edge account, you'll need to open one. This typically involves:
Completing an online application.
Providing personal information (SSN, date of birth, employment details).
Selecting the appropriate account type, such as a Cash Management Account (CMA).
Step 3: Fund Your Merrill Edge Account
Before you can move money into Preferred Deposit, the funds must first be in your Merrill Edge brokerage account. Merrill Edge offers several ways to fund your account:
Method 3.1: Electronic Transfers (ACH)
This is often the most convenient method for transferring funds from an external bank account.
Sub-step 3.1.1: Link Your External Bank Account.
Log in to your Merrill Edge account.
Look for an option like "Transfers" or "Move Money."
Select "Link External Account" or similar.
You'll typically need to provide your external bank's routing number and your account number.
Verification Process: Merrill Edge may initiate small "micro-deposits" into your external account, which you'll need to verify online to confirm the link. This usually takes 1-3 business days.
Sub-step 3.1.2: Initiate the ACH Transfer.
Once your external account is linked, you can initiate a transfer from your linked bank account to your Merrill Edge account.
Enter the amount you wish to transfer.
Processing Time: ACH transfers typically take 1 to 3 business days to clear and become available in your Merrill Edge account.
Method 3.2: Wire Transfer
For larger sums or when you need funds to be available quickly, a wire transfer is an excellent option.
Sub-step 3.2.1: Obtain Wire Instructions from Merrill Edge.
Log in to your Merrill Edge account or contact their client services.
You'll need Merrill's bank name, routing number, your Merrill Edge account number, and any specific instructions for wire transfers.
Important Note: Ensure you get the correct and current wire instructions directly from Merrill Edge.
Sub-step 3.2.2: Initiate Wire from Your Bank.
Go to your external bank (online, via phone, or in person) and request a wire transfer to your Merrill Edge account using the instructions you obtained.
Processing Time: Wire transfers are typically processed on the same day if initiated within your bank's cut-off times.
QuickTip: Every section builds on the last.
Method 3.3: Check Deposit
If you prefer a physical method, you can deposit a check.
Sub-step 3.3.1: Mobile Check Deposit (Recommended for convenience).
Download the Merrill Edge mobile app.
Log in and select the "Deposit Check" option.
Endorse your check: Write "For Deposit Only at Merrill" and your Merrill Edge account number on the back.
Take clear photos of the front and back of the endorsed check.
Follow the app's prompts to submit the deposit.
Processing Time: Mobile check deposits are subject to verification. Funds usually post by the next business day, but holds can apply for up to 8 days.
Sub-step 3.3.2: Mail a Check.
Make the check payable to "Merrill" or "Merrill Lynch, Pierce, Fenner & Smith Incorporated."
Write your Merrill Edge account number clearly in the memo field.
Mail the check to the appropriate Merrill address (check the Merrill Edge website for the most current mailing addresses).
Processing Time: This method generally takes 3-5 business days for the check to be received and processed.
Method 3.4: Transfer Accounts or Securities (ACATS)
If you're moving an entire brokerage or IRA account from another financial institution, you can initiate an Automated Customer Account Transfer Service (ACATS).
Sub-step 3.4.1: Initiate ACATS Transfer.
This is typically done from within your Merrill Edge account or by contacting Merrill Edge client services.
You'll need information about your external account, including the account number and the holding institution.
Processing Time: ACATS transfers can take 8 or more business days, as they involve coordination between two financial institutions.
Step 4: Direct Funds into Preferred Deposit
Once your funds have settled in your Merrill Edge brokerage account, you can then direct them into the Preferred Deposit program. Unlike some other investments, Preferred Deposit often requires interaction with a Merrill advisor or client service representative.
Sub-step 4.1: Contact Your Merrill Financial Advisor (Recommended).
The most straightforward way to initiate a Preferred Deposit placement is to contact your Merrill financial advisor directly. They can assess your needs and execute the transaction for you.
Your advisor will guide you on the current APY, minimum deposit requirements (which are typically a minimum initial deposit of $100,000, with subsequent deposits of $1,000 or more), and any other relevant details.
Sub-step 4.2: Call Merrill Edge Client Services.
If you don't have a dedicated advisor or prefer to manage it yourself, you can call Merrill Edge Client Services.
Merrill Edge Self-Directed Clients: 1.877.653.4732
Merrill Advisory Center Clients: 1.888.654.6837
Inform the representative that you wish to place funds from your available cash balance into the Preferred Deposit program.
They will confirm the eligibility of your account and the funds, explain the terms, and process the deposit for you.
Sub-step 4.3: Online Portal (Limited Functionality for Preferred Deposit).
While Merrill Edge's online portal allows for many self-directed transactions, placing funds directly into Preferred Deposit may not be a readily available online option for self-directed accounts. Preferred Deposit is often something that needs to be initiated through a representative due to its specific characteristics and minimums.
Important Considerations for Placement:
Minimum Initial Deposit: Be aware of the $100,000 minimum initial deposit for Preferred Deposit. Subsequent deposits typically have a lower minimum (e.g., $1,000).
Settlement Time: Deposit and withdrawal requests made by 5 p.m. Eastern Time will generally have same-day settlement. This means your funds will start earning the Preferred Deposit rate quickly once the instruction is given.
Monitoring: You can typically view your Preferred Deposit balance and interest earned within your regular Merrill Edge account statements and online portal.
QuickTip: Skim the intro, then dive deeper.
Congratulations!
You've successfully moved your money into Merrill Edge Preferred Deposit. Remember to periodically review your account statements and the prevailing interest rates to ensure it continues to meet your financial objectives.
Frequently Asked Questions (FAQs) - Merrill Edge Preferred Deposit
How to check the current APY for Merrill Edge Preferred Deposit?
You can typically find the most current Annual Percentage Yield (APY) by logging into your Merrill Edge account, checking their cash management solutions page, or by contacting your Merrill financial advisor or client services directly. The rates are variable and can change.
How to withdraw money from Merrill Edge Preferred Deposit?
To withdraw money from your Preferred Deposit, you generally need to contact your Merrill financial advisor or Merrill Edge client services. Requests made by 5 p.m. Eastern Time typically have same-day settlement, and the funds will then be available in your Merrill Edge cash sweep or linked account.
How to know if my Merrill Edge account is eligible for Preferred Deposit?
Preferred Deposit is offered through eligible Merrill brokerage accounts, most commonly the Cash Management Account (CMA). You can confirm your account's eligibility by logging into your Merrill Edge online account or by speaking with a Merrill representative.
How to link an external bank account to Merrill Edge?
Log in to your Merrill Edge account, navigate to the "Transfers" or "Move Money" section, and look for an option to "Link External Account." You'll need your external bank's routing and account numbers, and you may need to complete a micro-deposit verification process.
Tip: Be mindful — one idea at a time.
How to send a wire transfer to Merrill Edge?
Contact Merrill Edge client services or your financial advisor to obtain the precise wire transfer instructions, including Merrill's bank name, routing number, and your specific Merrill Edge account number. You then initiate the wire transfer from your external bank.
How to deposit a check using the Merrill Edge mobile app?
Download and log in to the Merrill Edge mobile app. Select "Deposit Check," endorse your check with "For Deposit Only at Merrill" and your account number, and then take clear photos of the front and back of the check.
How to determine the FDIC insurance coverage for Preferred Deposit?
Preferred Deposit balances held at Bank of America, N.A., are insured by the FDIC up to applicable limits, generally $250,000 per depositor, per insured bank, for each account ownership category. You should track your total deposits across all accounts at Bank of America (including Merrill's Preferred Deposit) to stay within FDIC limits.
How to find my Merrill Edge account number and routing number for deposits?
Your Merrill Edge account number can be found on your account statements or by logging into your online account. For direct deposits or wires, you'll need Merrill's routing number, which can be obtained from their website's funding instructions or by contacting client services.
How to get help with funding my Merrill Edge account?
For any assistance with funding your account or questions about Preferred Deposit, you can contact Merrill Edge Self-Directed Clients at 1.877.653.4732 or Merrill Advisory Center Clients at 1.888.654.6837.
How to know if Preferred Deposit is better than a money market fund?
Preferred Deposit is a bank deposit solution offering FDIC insurance, while money market mutual funds are investment products and are not FDIC insured. Money market funds may offer slightly higher yields but carry different risks. Your choice depends on your risk tolerance, liquidity needs, and whether you prioritize FDIC insurance. A financial advisor can help you compare these options.
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