Merrill Edge offers a variety of investment and banking solutions, and the "Preferred Deposit Account" is a specific bank deposit product available through Merrill Lynch brokerage accounts. It's designed to provide a competitive yield on cash balances within your investment portfolio. If you're looking to optimize your cash while keeping it liquid and FDIC-insured, this account might be a good fit.
Let's dive into a comprehensive, step-by-step guide on how to open a Merrill Edge Preferred Deposit Account.
Are you ready to supercharge your cash? Let's get started on opening your Merrill Edge Preferred Deposit Account!
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| How To Open Merrill Edge Preferred Deposit Account |
Step 1: Understand What a Merrill Edge Preferred Deposit Account Is (And If It's Right For You)
Before we jump into the application process, it's crucial to understand what the Preferred Deposit account entails and if it aligns with your financial goals. This isn't your everyday savings account; it's generally associated with a Merrill Lynch brokerage account and caters to clients with significant cash balances.
What is the Merrill Edge Preferred Deposit Account?
The Merrill Edge Preferred Deposit account (often referred to simply as "Preferred Deposit") is a bank deposit product offered through your Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S or Merrill Lynch) brokerage account. It's designed to provide a competitive interest rate on your cash while offering the security of FDIC insurance.
Key Features to Note:
Competitive Yield: It aims to offer a better interest rate compared to typical cash sweep options in brokerage accounts.
FDIC Insured: Your funds are deposited with Bank of America, N.A., and are insured by the Federal Deposit Insurance Corporation (FDIC) up to applicable limits ($250,000 per depositor, per insured bank, for each ownership category). This is a crucial security feature.
Liquidity: While part of your investment account, it's generally designed for quick access to your funds, allowing you to redirect assets for personal needs or other investment opportunities.
Integration with Merrill Accounts: Your Preferred Deposit balance and performance information are accessible within your Merrill Lynch account statement, offering a consolidated view of your total assets.
Who is this account best for?
This account is particularly suitable for individuals who:
Have a substantial amount of cash they want to keep liquid but earn a better yield on, rather than letting it sit in a low-interest checking or standard savings account.
Are already Merrill Edge or Merrill Lynch clients or are planning to open a brokerage account with them. The Preferred Deposit account is generally offered through a Merrill brokerage account.
Are enrolled in or qualify for the Bank of America Preferred Rewards program as this can sometimes enhance benefits or eligibility.
Want FDIC insurance on their larger cash holdings within an investment framework.
Important Considerations:
Minimum Initial Deposit: Historically, the Preferred Deposit account has had a significant minimum initial deposit, often reported as $100,000. While subsequent deposits can be smaller, be prepared for this initial threshold.
Not a Standalone Bank Account: This is not a checking account that you'd use for everyday transactions like direct deposits, bill pay, or writing checks. Its primary function is a higher-yielding cash management solution within your investment portfolio.
Variable Interest Rate: The interest rate on the Preferred Deposit account is variable and can change at any time without notice.
Step 2: Ensure You Meet the Eligibility Requirements
Before proceeding, verify that you meet the necessary criteria for opening a Merrill Edge Preferred Deposit Account.
Tip: Reread the opening if you feel lost.
Sub-heading: Do you have an existing Merrill Edge Brokerage Account?
The Preferred Deposit account is typically offered as a feature within a Merrill Lynch brokerage account. Therefore, a prerequisite is usually having an active, eligible Merrill Edge (or Merrill Lynch Wealth Management) brokerage account.
If you already have one, great! You're one step closer.
If you don't, you'll likely need to open a Merrill Edge Self-Directed Investment account, Merrill Guided Investing account, or a Merrill Lynch Wealth Management account first. We'll touch upon this briefly in the next step.
Sub-heading: Do you meet the Minimum Deposit Requirement?
As mentioned, the Preferred Deposit account typically requires a substantial initial deposit. While figures can vary and are subject to change by Merrill, historical data indicates a minimum initial deposit of $100,000.
Be prepared to fund your Merrill brokerage account with at least this amount to be eligible for the Preferred Deposit feature.
Subsequent deposits might have a lower minimum (e.g., $1,000), but the initial funding is key.
Sub-heading: Are you eligible for the Preferred Rewards Program (Optional, but Beneficial)?
While not strictly required to open the Preferred Deposit account, being eligible for or enrolled in the Bank of America Preferred Rewards program can offer additional benefits. To qualify for Preferred Rewards, you typically need an active, eligible personal checking account with Bank of America and maintain a certain combined average daily balance across your eligible Bank of America deposit accounts and/or Merrill investment accounts. Tiers start at $20,000 (Gold), $50,000 (Platinum), $100,000 (Platinum Honors), and $1,000,000 (Diamond Honors).
Check your Preferred Rewards tier if you're already a Bank of America customer, as higher tiers can sometimes come with enhanced benefits.
Step 3: Open or Access Your Merrill Edge Brokerage Account
This is the foundational step. If you already have an eligible Merrill Edge brokerage account, you can skip to Step 4.
Sub-heading: If you don't have a Merrill Edge Brokerage Account:
Choose your Merrill Edge Account Type:
Merrill Edge Self-Directed: If you prefer to manage your own investments with $0 online stock, ETF, and options trades. This is often the starting point.
Merrill Guided Investing: If you want a professionally managed portfolio with a lower minimum investment (often starting at $1,000).
Merrill Guided Investing with Advisor: For those who want the benefits of Merrill Guided Investing plus one-on-one access to an advisor (higher minimum investment).
Merrill Lynch Wealth Management: For clients who desire a dedicated financial advisor and comprehensive wealth management services (typically for larger asset levels).
Gather Necessary Information: You'll need personal details like your Social Security number, date of birth, valid mailing and email address, employment information, and potentially beneficiary details.
Complete the Online Application:
Visit the Merrill Edge website.
Click on "Open an Account" or a similar prompt.
Follow the on-screen instructions, providing all required information.
Fund your new account. This is where you'll typically make your initial deposit to meet the minimum requirements for the Preferred Deposit account. You can usually link an external bank account for an electronic funds transfer (ACH) or initiate a wire transfer.
Sub-heading: If you already have a Merrill Edge Brokerage Account:
Log in to your MyMerrill.com Account: Access your online Merrill Edge portal using your credentials.
Ensure sufficient cash balance: Verify that you have at least the minimum required balance (e.g., $100,000) available in your Merrill Edge brokerage account. If not, you'll need to transfer funds into it.
Step 4: Initiate the Preferred Deposit Account Setup
Tip: Keep scrolling — each part adds context.
This step is typically not an online, self-service process in the same way you open a standard brokerage account. The Preferred Deposit account is generally set up through a Merrill representative.
Sub-heading: Contacting a Merrill Representative
The most direct and recommended way to open a Preferred Deposit account is to contact Merrill directly.
Call the Merrill Advisory Center:
You can typically reach them at 1.888.654.6837 (for Merrill Edge Advisory Center) or 1.800.MERRILL (637.7455) (for Merrill Lynch Wealth Management).
Be prepared to state your intention: "I would like to open a Preferred Deposit account within my existing Merrill brokerage account."
Speak with Your Merrill Financial Advisor (if you have one):
If you work with a dedicated Merrill Lynch financial advisor, they are your primary point of contact for setting up this type of account. They can guide you through the process and ensure it aligns with your overall financial strategy.
Sub-heading: The Process with a Representative
When you speak with a Merrill representative, they will:
Verify your eligibility, including your current Merrill Edge brokerage account status and the available cash balance.
Explain the current terms and conditions of the Preferred Deposit account, including the prevailing interest rate (which is variable), any applicable fees (though the Preferred Deposit itself generally doesn't have direct fees, overall brokerage account fees may apply), and the FDIC insurance details.
Initiate the transfer of funds from your existing Merrill brokerage account cash balance into the Preferred Deposit account. This is usually an internal transfer.
Confirm the setup and provide you with any necessary disclosures or documentation.
Step 5: Fund Your Preferred Deposit Account (Internal Transfer)
Once the Merrill representative has initiated the setup, the actual funding of the Preferred Deposit account typically happens as an internal transfer within your Merrill account.
Sub-heading: Understanding the Funding Mechanism
The funds for your Preferred Deposit account will come from the cash balance held within your associated Merrill Lynch brokerage account.
You cannot directly deposit into the Preferred Deposit account from an external bank account. All external deposits must first go into your Merrill brokerage account.
Sub-heading: Confirming the Transfer
The Merrill representative will likely confirm that the transfer has been initiated.
You should see the change in your account balances reflected on your MyMerrill.com portal, with the funds now appearing under your Preferred Deposit allocation.
Deposit and withdrawal requests made by 5 p.m. Eastern will generally have same-day settlement, offering good liquidity.
Step 6: Monitor Your Account and Access Funds
Once your Preferred Deposit account is open and funded, you can easily monitor its performance and access your funds when needed.
QuickTip: Revisit this post tomorrow — it’ll feel new.
Sub-heading: Online Monitoring
MyMerrill.com: Your Preferred Deposit balance and interest earned will be integrated into your regular Merrill Edge account statements and accessible through your online portal. This provides a consolidated view of your overall investment portfolio.
Statements: Review your monthly or quarterly statements to track the interest earned and your account balance.
Sub-heading: Accessing Your Funds
Through your Financial Advisor: The most common way to make withdrawals or transfers from your Preferred Deposit account is by contacting your Merrill financial advisor. They can facilitate the movement of funds back into your Merrill brokerage cash balance or to a linked bank account.
Via MyMerrill.com (if enabled for online order entry): If you are enrolled in online order entry, you may be able to initiate withdrawals through MyMerrill.com. Funds will typically be moved back to your Merrill brokerage account cash balance first.
Calling the Merrill Advisory Center: You can also call the Advisory Center to request withdrawals or transfers.
Congratulations! You've successfully navigated the process of opening a Merrill Edge Preferred Deposit Account.
10 Related FAQ Questions
How to check my Merrill Edge Preferred Deposit account balance?
You can check your Merrill Edge Preferred Deposit account balance by logging into your MyMerrill.com online account portal, where it will be integrated with your overall Merrill Edge brokerage account statements and balances.
How to transfer money into my Merrill Edge Preferred Deposit account?
To transfer money into your Merrill Edge Preferred Deposit account, you first need to deposit funds into your associated Merrill Edge brokerage account. Once the funds are in your brokerage account, you will typically need to contact a Merrill representative or your financial advisor to initiate the transfer from your brokerage account's cash balance into the Preferred Deposit account.
How to withdraw money from my Merrill Edge Preferred Deposit account?
To withdraw money from your Merrill Edge Preferred Deposit account, you generally need to contact your Merrill financial advisor or the Merrill Advisory Center. They will facilitate the transfer of funds from the Preferred Deposit account back into your Merrill Edge brokerage account's cash balance, from where you can then transfer it to a linked external bank account.
How to find the current interest rate for the Merrill Edge Preferred Deposit account?
QuickTip: Ask yourself what the author is trying to say.
The current interest rate for the Merrill Edge Preferred Deposit account is variable and can change. You can typically find the most up-to-date rate by visiting MyMerrill.com or by contacting your Merrill financial advisor or the Merrill Advisory Center.
How to determine if I'm eligible for the Merrill Edge Preferred Deposit account?
You are typically eligible for the Merrill Edge Preferred Deposit account if you have an active Merrill Lynch brokerage account (e.g., Merrill Edge Self-Directed, Guided Investing, or Wealth Management) and can meet the minimum initial deposit requirement, which has historically been $100,000.
How to link my Bank of America account to my Merrill Edge Preferred Deposit account?
While the Preferred Deposit account itself is a deposit product with Bank of America N.A. through Merrill, you link your Bank of America checking or savings accounts to your Merrill Edge brokerage account for easy transfers. This linkage is usually established during the brokerage account opening process or can be added later via your online portal or by contacting Merrill.
How to understand the FDIC insurance for my Preferred Deposit account?
Your Merrill Edge Preferred Deposit account is FDIC-insured up to $250,000 per depositor, per insured bank, for each ownership category. This means your deposits are protected by the Federal Deposit Insurance Corporation in the event of Bank of America's failure, up to the specified limits.
How to avoid fees with the Merrill Edge Preferred Deposit account?
The Preferred Deposit account itself typically does not have direct fees. However, any fees associated with your underlying Merrill Edge brokerage account or Bank of America checking account (if you use it for Preferred Rewards benefits) would still apply. Maintaining certain balances can waive some brokerage or banking fees.
How to get a consolidated view of my Merrill Edge Preferred Deposit account with my other investments?
All your Merrill Edge accounts, including the Preferred Deposit account, are typically consolidated and viewable on your MyMerrill.com online portal. This provides a single dashboard to see your investment portfolio and cash balances.
How to close a Merrill Edge Preferred Deposit account?
To close a Merrill Edge Preferred Deposit account, you will need to contact your Merrill financial advisor or the Merrill Advisory Center. They will guide you through the process, which usually involves transferring the funds out of the Preferred Deposit account and into another eligible account.
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