Image credit: Victor Dubreuil, “Five Dollar Bill” (ca. 1885), The Phillips Collection
By Jason Zweig | Aug. 21, 2018 3:36 p.m. ET
Starting Sept. 4, Bank of America Corp.’s Merrill Lynch brokerage unit will no longer sweep its customers’ cash into money-market mutual funds, moving it instead into deposits at affiliated banks.
In communications distributed to its staff on Monday, the brokerage said money-market funds “will no longer be available as a sweep choice for most new accounts.” Instead, clients’ uninvested cash will be automatically routed to bank deposits. For six months, these so-called bank sweep accounts will earn a “transitional yield” equal to that on a money-market fund; after May 2019, the yields on those deposits are likely to drop to market rates below that level….
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For further reading:
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Devil’s Financial Dictionary
Benjamin Graham, The Intelligent Investor
Jason Zweig, The Little Book of Safe Money