Also known as a CMA, a cash management account is a cash account that allows you to earn interest on your existing balance. It manages to combine many of the key features of a checking account, like bill pay, direct deposit, and ATM access, with accounts like savings and investment to help grow your balance based on variable annual percentage yields (APYs). These accounts are sometimes offered by financial service providers, not banks, so there are some features lacking. Many providers do not offer a brick-and-mortar location for you to visit in person, instead of delegating all account services to the digital realm. With so many choices today, it can be difficult to find the right cash management account to park your money, but we have done an in-depth analysis of today’s leading providers. Based on the most current data available, these are the best cash management accounts today.
You can move money as often as you like without penalty, with withdrawals taking 1-2 business days. You can also set up buckets for different purposes with the added option of auto-deposit to simplify life. For additional support, Betterment offers financial support and retirement planning tools. With the Betterment Satisfaction Guarantee, Betterment will work with you to resolve any issues while waiving the Betterment management fee for up to three months.
Fees
There is a 0.10% APY on your savings account with a variable APY that tracks the Fed Fund Rate. A minimum balance of $10 is required to open your account, but there is no minimum balance after your account is open.
Pros:
Savings buckets to organize your moneyJoint accounts availableFDIC-insured up to $2 million
Cons:
No cash depositsRestricted direct deposit No physical branches
This is a brokerage account that is FDIC-insured up to $1.25 million while combining the best features of a checking and savings account. Through its FDIC Deposit Sweep program, your account earns interest on your balance while also benefiting from convenient features like ATM withdrawals, access to a debit card, and even free checks. Fidelity partners with program banks that include JP Morgan Chase Bank, Santander Bank, and CitiBank. Fidelity’s Cash Manager tool is an invaluable resource when it comes to managing your account. Use the service to control your account with minimum and maximum target balances and minimum transfer targets.
Fees
There are no account or commission fees for Fidelity’s Cash Management Account. There is an 0.01% APY on available balances.
Pros:
No account or commission fees7,000+ investment optionsNo account minimums
Cons:
Low-interest rateLimited branch locationsIt does not support cryptocurrency
Regardless of which account you choose, you can access cash from banks and tellers that take Mastercard. Account management is made easy with both online and mobile app management, plus there are extra perks like Experian identity and credit protection with monthly reporting, real-time alerts, and extra integrated Mastercard protections. Security features include cash management alerts with the ability to lock and unlock your debit card. Morgan Stanley also offers a $695 annual engagement bonus when you sign up for Platinum CashPlus.
Fees
Morgan Stanley CashPlus does not have many of the standard fees, such as cash advance, ATM or foreign transaction fees. There is no account fee when you maintain total monthly deposits of $2,500 for the Premier and $5,000 for the Platinum. Otherwise, fees cost about $15 or $45 per month. There is an APY of up to 0.75%.
Pros:
Use anywhere Mastercard is acceptedUnlimited ATM fee rebatesAnnual bonus
Cons:
The high threshold to skip account feesIt may be difficult to qualify Limited FDIC insurance
Here, there is the option for a joint account, making it a great option for couples and families. Accounts are FDIC-insured up to $1.5 million for greater protection and peace of mind. To help keep you organized, Personal Capital offers optional direct deposit and monthly bill pay. Plus, you can easily manage all of these services when you access your account via the mobile app or online access. There are no restrictions on the number of monthly transfers you can make, although there is a maximum withdrawal of $100,000 per day.
Fees
Personal Capital Cash has no account fees and no minimum balance. There are also no limits regarding the number of deposits or withdrawals for your account. There is a maximum deposit limit of $250,000 per transaction, and you can wire up to $1 million without any fees.
Pros:
No feesLarge wire limitsConvenient mobile app
Cons:
Low APYNo ATMsLacking physical branches
With its cash management account, you receive access to over 75,000 ATMs, which is far more locations than many other cash management accounts. You also benefit from extra safety protocols, like up to $1.25 million of FDIC protection and Mastercard’s Zero Liability Protection against fraudulent transactions. Robinhood utilizes leading security measures to keep your account secure, including encryption, TLS protocol, and machine learning fraud protection. Account-holders also have the option of extra features, such as transaction notifications and location protection, if your card is used too far from your phone.
Fees
Robinhood offers an impressive 0.30% APY on its cash management account. There are also no fees, including no charges for overdrafts, account minimums, transfers, or foreign transactions.
Pros:
No account fees75,000+ ATMsNo foreign transaction fees
Cons:
No in-person bankingNo cash depositsOut-of-network ATM fees
How much you earn depends on the amount of money you keep in your account. When you deposit a minimum of $500 into your account each month, you earn an APY of 0.25%, compared to the 0.01% APY that would otherwise apply. Even better, SoFi offers a ton of membership perks not seen with other companies. This includes a 0.125% rate discount when you take out a SoFi loan. There are also free career services, including one-on-one consultations for job searches and transitions.
Fees
SoFi offers an 0.25% APY when you maintain a minimum of $500 in monthly deposits. Otherwise, the APY is 0.01%. There are no ATM or account fees. However, although SoFi does not charge foreign transactions fees, you may face a 0.20% foreign exchange fee from MasterCard.
Pros:
High APYNo ATM feesATM fee reimbursement
Cons:
Conditional account feesNo physical branchesTransaction limits
Wealthfront does not just offer individual accounts, either. There are also joint and trust accounts if you are looking for something different from the everyday account. Accounts are FDIC-insured up to $1 million. Additional account services include instant transfers and easy bill pay, plus the ability to send and deposit checks. When you use direct deposit for your check, you could receive funds up to two days before your payday. To keep your account secure, there is active fraud monitoring.
Fees
Wealthfront’s cash management account holds a 0.10 APY. There are no account, overdraft, or transfer fees, but you will need $1 to open your account.
Pros:
Three types of plansAvailable bill payDirect deposit up to 2 days early
Cons:
$1 million FDIC insuranceLow APYA limited number of ATMs
APY: The first thing many people consider is the APY or annual percentage yield. This is how much will be earned on your account balance. Fees: There are many fees that can eat into your earnings, such as an account fee.ATM network: It is important to consider the size of your network and the number of ATMs available for you to use without extra fees. Debit card: If you regularly want to access your money, a debit card and checks can help you spend as needed.Direct deposit: Some accounts allow you to deposit your paycheck into your account up to two days early when you use direct deposit. Tools and resources: Some companies offer additional tools and resources, such as fraud protection and even career services.
Before you choose the best cash management account for you, consider which features are most important to you. Some other cash management accounts we considered include:
Aspiration: 1.00% APYLendingClub: 0.15% APYTD Ameritrade: 0.01%
