Merrill Edge cash options (including MMFs)

msf

Merrill Edge joined lots of other brokerages last autumn in moving customers' settlement (core) accounts into low paying (though FDIC-insured) bank accounts. Current yield is 0.14% (up to $250K).
https://advisorhub.com/merrill-to-shift-client-cash-into-bofa-accounts-and-away-from-cash/

Here's a column (Feb 19, 2019) giving options for cash in these accounts. There are some MMFs you can buy that pay a passable rate of interest, though well under 2%. (Fidelity's default SPAXX currently yields 2.05%.)
https://www.mymoneyblog.com/merrill-edge-brokerage-cash-sweep-options.html

Two items of note in that column:
There's a 2.07% bank account you can get into if you bootstrap it with $100K (you can reduce the amount once opened);
The same $100K will get you into some institutional MMFs.

A couple of those funds actually have fluctuating NAVs, i.e. are real, institutional, non-government MMFs. A prime fund (currently yielding 2.54%) and a muni fund.

VintageFreak

@msf Thanks very much! I do have Merrill Lynch Brokerage account. Wasn't aware I could buy SPAXX NTF (assuming it is NTF)

msf

I wasn't as clear as I could be. I was trying to compare Merrill Edge's best with Fidelity's "standard". Merrill only offers Blackrock and Federated MMFs. According to their latest rate sheet, the only MMF available for self-directed investors with less than $100K in cash is BPTXX. $5K min, 1.77% yield. Significantly less than SPAXX, but still beats their bank account default by well over 1½%.

https://olui2.fs.ml.com/Publish/Content/application/pdf/GWMOL/ICCRateSheet.pdf

VintageFreak

@msf I understand. BPTXX is still better than nothing. At least now I know if I have to hold cash there I can at least get something for it. Thanks again!