Bank of America settles cash sweep claims for $39M

Bank of America agreed to pay $39 million to resolve a class-action lawsuit filed by customers over low interest rates paid on cash balances. Reuters reported the agreement following filings submitted on September 30, 2026, in Manhattan federal court.

The litigation focused on cash sweep accounts at the bank's Merrill Lynch wealth management unit between December 15, 2016, and March 15, 2020. During that period, Merrill Lynch paid annual interest rates between 0.05% and 0.14% on idle customer cash.

The plaintiffs alleged that competing institutions offered prevailing interest rates of around 2% on uninvested cash during the same timeframe. The settlement resolves allegations that the bank breached duties to customers by paying below-market yields.