| Feature |
WCMA Account |
Bank |
| Account Structure |
Integrates cash management, investing and online business cash management solutions through one account |
Separate accounts required for checking and investing |
| Account Fee |
Simplified fee structure - one annual account fee includes access to:
- Automatic sweep of available cash into money funds1
- Merrill Lynch Visa Business card(s) with up to 99 cards issued
- Online business cash management services
- Comprehensive online information reporting, as well as monthly and fiscal year-end statements
- 200 checks written per month free
- 100 checks deposited per month free
- Online ACH transaction processing up to 200 free transactions
- Account transfers
|
Modular fee structure; monthly fee to access each service provided separate monthly fee for:
- Checking account
- Investment (or “sweep”) account
- Online cash management solutions
- Balance and transaction reporting
- Monthly statements
- Business check cards per account
- Automated Clearing House (ACH) processing
Transaction fees for:
- ACH transaction fees for each transaction processed, in addition to monthly service fee
- Fee charged for incoming wire transfers
|
| Overall Efficiency |
Available cash is automatically invested into money fund1 to earn dividends
Money fund not redeemed until disbursements are posted to the WCMA account |
Idle cash accumulates in a non-interest-bearing checking account |
| Online Cash Management Solutions
| No additional charge for:
- Balance reporting for WCMA accounts and external bank accounts
- Real-time access to account information
- Online ACH transaction processing transfers up to 200 free transactions
- Account transfers
|
Monthly fee charged for access to online cash management solutions, as well as additional fees for individual services accessed online
Balance reporting limited to proprietary accounts; additional monthly fee for obtaining nonproprietary account information
Account information updated periodically over course of day; additional monthly fee for real-time information
Per-transaction fee charged for each line reported or each ACH transaction processed |
| Investment Options and Efficiency |
Financial Advisor provides personalized guidance and cash management solutions
Access to a full range of Merrill Lynch short-, intermediate- and long-term investments
Available cash automatically invested in money funds
No charge for automatic sweep into money funds
Minimum balance not required to earn dividends |
Limited access to various investment vehicles
Excess cash must be swept into a separate money market or investment account
Monthly fees charged for sweep account maintenance
Minimum balance may be required in checking account; excess funds sweep into interest-bearing vehicle |
| Account Protection |
Account protection through Securities Investor Protection Corporation (SIPC)2 for cash and securities held by Merrill Lynch, including all WCMA® money funds1, to a maximum of $500,000 per client ( including up to $100,000 for cash). Additional coverage for amounts in excess of SIPC's limits provided by Lloyd's of London, up to an aggregate loss limit of $600 million for all client claims |
Deposits at a bank are protected by the Federal Deposit Insurance Corporation (FDIC)3, up to a maximum of $100,000 per client |
| Earnings Credit Federal Reserve Requirement |
Not applicable to brokerage accounts; dividends earned on all money fund1 balances
Cash balances swept for investment or used to reduce outstanding credit balances |
Earnings credit allowance,
maintained in a non-interest-bearing account, used to offset account fees; excess earnings retained by bank
Federal Reserve requirement, typically 10% of balance, which cannot earn credit allowance |
1 For a current prospectus of Merrill Lynch money funds, which contains more complete information, please call your Financial Advisor. Before investing consider the investment objectives, risks and charges, and expenses of the fund. Investments in the 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 per share, it is possible to lose money by investing in the funds.
2 All protection is provided per client, not per account. SIPC and excess-SIPC coverage do not protect against market losses in clients’ accounts, nor does it cover assets that are not eligible for protection because they are not securities or cash – as defined by SIPC – or to assets not actually held in the WCMA account. For more information, go to http://www.sipc.org/.
3 FDIC provides protection up to a maximum of $100,000 (including principal and interest) for all deposits held in the same legal ownership category.