Bank of America to Pay $39 Million Settlement Over Merrill Edge Cash Interest Rates

Bank of America has reached a $39 million settlement to resolve a class-action lawsuit alleging that its Merrill Edge unit provided near-zero interest rates on idle cash in customer accounts. The lawsuit claimed that the firm swept funds into accounts yielding between 0.05% and 0.14%, significantly lower than the approximately 2% offered by competitors during the period from December 15, 2016, to March 15, 2020. The settlement, which still requires approval from U.S. District Judge Valerie Caproni, allows the firm to avoid a trial previously scheduled for mid-October. Merrill Lynch denies any wrongdoing in the matter.