You’re sitting on some cash. Maybe it’s a bonus, or maybe you finally sold that old car. You want it to grow, but the stock market feels a bit like a rollercoaster right now, doesn't it? So you look at Merrill.
Most people think "Merrill Lynch CD rates" are just the numbers you see on a flyer at a Bank of America branch.
They aren't.
In fact, if you just walk into a branch and ask for a CD, you’re probably going to get a "bank CD." These are fine. They’re safe. But the rates? Honestly, they’re often a bit lackluster compared to what you can find if you know where to dig inside the Merrill ecosystem.
The Brokered CD Secret
Here is the deal. Merrill Lynch doesn't just offer their own CDs. Because they are a massive brokerage, they give you access to brokered CDs.
This is where things get interesting.
A brokered CD is basically a certificate of deposit issued by other banks—think Goldman Sachs, Capital One, or even small regional banks you’ve never heard of—but sold through the Merrill platform.
Why does this matter for you?
- Competition: Banks all over the country are fighting for your money.
- Higher Yields: Brokered rates usually beat the "standard" bank CD rates by a significant margin.
- Convenience: You can hold ten different CDs from ten different banks all inside one Merrill account.
Right now, in early 2026, we are seeing brokered CD rates through Merrill hovering around the 4.00% to 4.15% APY mark for one-year terms. Some shorter-term options, like 3-month or 6-month CDs, are hitting that 4.10% sweet spot.
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Compare that to a standard brick-and-mortar savings account. It’s a night and day difference.
Understanding the "Secondary Market" Trap
You've gotta be careful, though. Brokered CDs aren't exactly like the ones your grandma had.
If you buy a regular CD at a bank and you need your money back early, you pay a penalty—usually a few months of interest. Simple.
With a Merrill brokered CD, there is often no early withdrawal option.
Wait, what?
If you need the cash, you have to sell your CD on the "secondary market." It’s like selling a stock. If interest rates have gone up since you bought your CD, the value of your CD goes down. You might actually lose some of your principal.
On the flip side, if rates have dropped, your CD might be worth more than you paid for it. It's a bit of a gamble if you aren't planning to hold until the maturity date.
Are Merrill Lynch CD Rates Better Than the Competition?
Let's be real. If you’re hunting for the absolute, rock-bottom, highest rate in the entire galaxy, you might find a tiny credit union in North Carolina offering 4.20% or 4.25% today.
But for most of us, the "hassle factor" is real.
Opening a new account at a random bank just to get an extra 0.05% is a pain. If you already have a Merrill Edge account or you’re a Bank of America Preferred Rewards member, the math changes.
The Preferred Rewards Perk
If you’re in the Bank of America Preferred Rewards program (Gold, Platinum, or Platinum Honors), you don't necessarily get a "higher" rate on the brokered CDs themselves.
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However, your combined balances—including those CDs—help you keep your status. That status gets you:
- Boosted credit card rewards (up to 75% more).
- Better rates on mortgages and auto loans.
- No-fee banking.
When you factor in those "hidden" returns, the effective Merrill Lynch CD rates look a whole lot better than the raw numbers suggest.
How to Actually Find These Rates
Don't just look at the landing page. You have to go into the Fixed Income Screener.
Once you’re logged into Merrill Edge, go to the "Research" tab and find "Bonds & CDs." This is where the real data lives. You can filter by:
- Maturity: Do you want your money back in 3 months or 5 years?
- Coupon Type: Fixed is usually best for CDs.
- Call Protection: This is huge. A "callable" CD means the bank can give you your money back early if rates drop. You don't want that if you’re trying to lock in a high rate. Always look for "Non-Callable" if you want certainty.
What Nobody Talks About: SIPC vs. FDIC
This is a point of confusion for a lot of people.
If you buy a CD through Merrill, is it still insured? Yes.
The underlying bank that issued the CD provides the FDIC insurance (up to $250,000 per person, per bank). Merrill themselves provide SIPC protection, but that’s more about protecting you if the brokerage itself fails, not against the loss of value in your investments.
Essentially, you get the best of both worlds: the safety of a bank deposit with the high-yield access of a brokerage.
The Strategy for 2026
Rates are expected to be a bit volatile this year. The "smart move" many experts are talking about right now isn't putting all your money into one 5-year CD.
It’s the Ladder.
Basically, you split your cash. Put some in a 3-month CD, some in a 6-month, and some in a 12-month.
As the 3-month one matures, you reinvest it into a new 12-month CD. This way, you always have cash coming due every few months in case you need it, but you're still capturing the higher rates of the longer-term CDs.
Actionable Next Steps
If you want to move forward, don't just wait around. Rates change daily.
- Check your balance: You generally need at least $1,000 to buy a brokered CD at Merrill.
- Log in to the Screener: Use the "Bond & CD Finder" tool on the Merrill website rather than looking at the general bank homepage.
- Verify "Non-Callable": Ensure the CDs you select cannot be "called" back by the bank before they mature.
- Review your rewards: See if the CD purchase will push you into a higher tier of Bank of America Preferred Rewards.
Once you buy, the interest usually sweeps right into your cash account. You don't have to do anything else. Just sit back and let the math work.
Disclaimer: Rate data is based on January 2026 market conditions and is subject to change. Always check the current prospectus and disclosures before investing, as brokered CDs carry different risks than traditional bank CDs.