Take advantage of your account sweep features

Merrill Edge Investment Center

1-877-653-4732

Monday - Friday,
7:30 a.m. to midnight

Saturday,
8:00 a.m. to 9:00 p.m. ET

You have chosen Merrill Edge self-directed investing and we want to make sure that you are aware of your account sweep feature — where all cash in your account is held — and how you can take full advantage of it.

How it works

Cash balances in your accounts sweep to either the ML Direct Deposit Program or the Retirement Asset Savings Program II. Under these programs, all new cash automatically sweeps to an FDIC-insured, interest-bearing bank deposit account at one or both of these Merrill Lynch affiliated banks: FIA Card Services, N.A. or Bank of America Rhode Island, N.A.

You'll see your sweep referenced online and on your statements as ML Direct Deposit Program for non-retirement accounts and Retirement Asset Savings Program IISM for IRAs. The total cash in these accounts are included in determining your $0 online equity trade eligibility. 1

Converted BAI Online Investing Clients

Accounts that were held at BAI Online Investing have specific changes related to the sweep feature. Cash at BAI had been held in a BofA Global Capital fund (BofA fund). The following changes were implemented in October 2010.


  • Any new cash in your Merrill Edge self-directed account — either from deposits made into your account or proceeds as a result of any sale of investments — is automatically swept to the ML Direct Deposit Program or Retirement Asset Savings Program II
  • Any investment purchases in your Merrill Edge self-directed account are funded first from any remaining BofA fund balance. Once that fund is depleted, future purchases will be made from the ML Direct Deposit Program or Retirement Asset Savings Program II

Key Benefits of the Bank Deposit Account


  • The bank deposit programs currently earn a higher interest rate than the existing fund options (keep in mind, yields fluctuate and can change from day to day)
  • The bank deposit program's cash balances count toward the eligibility criteria for
    $0 online equity trades1 (BofA fund balances do not)

If you still have money in the BofA fund, you have the option to either move your BofA fund balance to the bank deposit program now, or let your BofA fund balance deplete over time due to ongoing account transactions. If you would like to convert now, you can call us now at 1.877.653.4732 or you can enter your contact information in the "Have Us Contact You" box to the right to have us contact you later.

See below to compare the Merrill Lynch Direct Deposit Program or Retirement Asset Savings Program II to the BofA Global Capital Management fund. You can determine which fund you currently hold by visiting your positions page or statement.

 

Taxable Sweep Options Share Class/Symbol2  Type of insurance coverage Yield as of 02/02/113  Counts towards the $0 online equity trade eligibility criteria1 
Merrill Lynch Direct Deposit Program or Retirement Asset Savings Program II (RASP II) N/A FDIC Annual Percentage Yield (APY) as of 02/02/11: 0.05% Yes
BofA Global Capital Management Fund - Cash Reserves Fund Daily/NSHXX SIPC 7-Day Yield as of 02/02/11: 0.00% No
BofA Global Capital Management Fund - Government Reserves Daily/NRDXX SIPC 7-Day Yield as of 02/02/11: 0.01% No
BofA Global Capital Management Fund - Treasury Reserves Daily/NDLXX SIPC 7-Day Yield as of 02/02/11: 0.00% No

Please take note that yields fluctuate and can change on a daily basis. Please also note the difference between FDIC and SIPC Insurance outlined below.

Differences between FDIC insurance and SIPC insurance

FDIC insurance

  • The FDIC — or Federal Deposit Insurance Corporation — is a U.S. federal agency that protects customers of FDIC-insured banks against loss of deposit accounts (such as checking/savings).
  • The standard insurance amount is currently $250,000 per depositor per bank.
  • The Merrill Lynch Affiliated Banks are FDIC-insured banks.

For more information, visit fdic.gov.

SIPC insurance

  • The Securities Investor Protection Corporation — or SIPC — is a nonprofit membership corporation that protects customers of SIPC-member broker-dealers in the event of financial failure.
  • Accounts are insured up to $500,000 per customer, including a maximum of $250,000 for cash.
  • SIPC does not insure losses that occur due to market fluctuation.
  • Not all investments are protected. SIPC covers stocks, bonds, mutual funds, notes and other registered securities.
  • Merrill Lynch, Pierce, Fenner & Smith Incorporated is a member of SIPC.

To learn more, visit sipc.org.

For your information

Deposits held at the Merrill Lynch Affiliated Banks are financially beneficial to Merrill Lynch and its affiliates. For example, the Merrill Lynch Affiliated Banks use bank deposits to fund current and new lending, investment and other business activities. Like other depository institutions, the profitability of the Merrill Lynch Affiliated Banks is determined in large part by the difference between the interest paid and other costs incurred by them on bank deposits, and the interest or other income earned on their loans, investments and other assets. The deposits provide a stable source of funding for the Merrill Lynch Affiliated Banks, and borrowing costs incurred to fund the business activities of the Merrill Lynch Affiliated Banks have been reduced by the use of deposits from Merrill Lynch clients.

Merrill Lynch receives compensation from the Merrill Lynch Affiliated Banks of up to $65 per year for each CMA® and Beyond Banking® account and $30 per year for each retirement account (IRA, SEP, SIMPLE, Roth IRA, Rollover or Basic plan account), Education Savings, Health Savings and Medical Savings accounts that has uninvested cash balances automatically swept to the Merrill Lynch Affiliated Banks under the Merrill Lynch deposit program (bank deposit account) or Retirement Asset Savings Program IISM (RASP IISM). This compensation is subject to change from time to time and Merrill Lynch may waive all or part of it.

Please remember there's always the potential of losing money when investing in securites.

1This offer and investment products are provided by Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S). See merrilledge.com for more details including the restrictions and exclusions associated with the offer and for information about MLPF&S standard brokerage fees. Banking products provided by Bank of America, N.A. and affiliated banks, Members FDIC.

This offer is available with an individual or joint Merrill Edge self-directed brokerage account. MLPF&S waives its commission fee for as many as 30 online equity trades each month for self-directed brokerage customers who meet either of the following criteria:

a. A combined total of $25,000 or more in your deposit accounts at Bank of America, N.A. When you make an online equity trade, MLPF&S determines whether you meet the balance requirement to qualify that trade for the commission fee waiver. MLPF&S adds the average collected balances in your checking and savings accounts as of the prior month to the balances in your CD and FDIC-insured IRA accounts as of the prior business day. If this calculation reflects a combined total of less than $25,000, MLPF&S then makes a second calculation to see if the trade qualifies by adding the balances in your checking, savings, CD and FDIC-insured IRA accounts as of the prior business day.

b. A combined balance of $25,000 or more in cash balances in one of the following sweep options in your Merrill Edge self-directed account(s) as of the prior business day:
• Bank Deposit Accounts sweep option with your CMA
• Retirement Assets Savings Program II (RASP II) sweep with your IRA

If this balance is less than $25,000, MLPF&S then makes a second calculation to see if your average collected balance as of the prior month reflects a total of $25,000 or more to determine whether you meet the balance requirements to qualify for the commission fee waiver.

Offer applies only to online equity trades, including stock and exchange traded fund (ETF) trades.

Standard commission fees for online equity trades depend on your total relationship with Bank of America and Merrill Lynch and apply when the balance requirement is not met, or when you exceed 30 qualifying trades a month.

To determine the 30-trade limit, MLPF&S adds the qualifying trades in your individual accounts and in each joint account for which you are the account owner. Deposit accounts with the same social security number as the social security number (s) on the self-directed brokerage account are systematically included in the balance determination. Deposit accounts maintained with the Military Bank of Bank of America, N.A. are not systematically included in the balance determination.

Other standard brokerage fees associated with, but not limited to, margin transactions, option trading, special stock registration/gifting, account transfer and processing, account maintenance, research request and termination apply. Standard deposit fees apply to deposit accounts.

Relationship requirements and pricing are subject to change.

This offer applies only to self-directed brokerage accounts held at Merrill Edge. Offers available through other Merrill Lynch services may vary in terms and conditions. This offer does not apply to Business/Corporate Accounts, Investment Club Accounts, Partnership Accounts and certain fiduciary accounts held at MLPF&S. See merrilledge.com for more details, including the restrictions and exclusions associated with the offer and for information about Merrill Edge self-directed investing fees.

Banking products provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation.

2 If you hold the Advisor or Institutional share class of the BofA Global Capital Management Cash Reserves, Government Reserves or Treasury Reserves Funds, please call our Investment Center at 1.877.653.4732 for current yield information.

3 Rate information is time-sensitive and is subject to change. Annual Percentage Yield or “APY” of a bank deposit account is a rate that includes the interest rate paid by the bank and the value of compounding of interest, and assumes interest is not withdrawn from the deposit account and no change to the interest rate for one year. Note that the interest rate (and APY) of a bank deposit account may change at the depository bank’s discretion at any time after the account is opened. Fees may reduce earnings.

7-day yield for money funds is the simple average of each of the last 7 days' daily yields. The yield more closely reflects the current earnings of the fund than the total return performance information. Yields are shown for the 7-day period ending on date shown.

Past performance is not an indication of future performance or success. Yields shown are indicative of recent yields as of the date shown and are subject to change and availability.

The short-term bank deposit and investment solutions shown are not comprehensive and other, similar solutions may be available. This document does not constitute a recommendation or solicitation by Merrill Edge for the purchase or sale of any particular product. Merrill Edge does not offer tax advice. Please consult your tax professional for information regarding your individual or business tax situation.

Investing involves risk. Fund shares may fluctuate due to market conditions and may result in a loss of principal. For a current prospectus of any money market mutual fund offered by Merrill Lynch, which contains more complete information, call the Investment Center at 1.877.653.4732. Please review the prospectus carefully before investing. In addition, before investing, investors should consider carefully the investment objectives, risks, and charges and expenses of the respective fund. Investments in money market funds are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds. The 7-day yields more closely reflect the current earnings of the fund than the total return.