5 Best Cash Management Accounts of 2024
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The best cash management accounts pay interest and typically come with low or no fees. They're offered by brokerage firms, and they combine services and features similar to those of checking and/or savings, all in one product.
Why trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.
Interest rates for the best cash management accounts are much higher than the national average savings account APY, currently just 0.45%.
To provide federal insurance, cash management account providers typically work with partner banks. CMA providers sweep customer deposits into partner bank accounts, where the funds benefit from the bank’s Federal Deposit Insurance Corp. insurance. Keep in mind that even though your money is FDIC-protected if the partner bank were to fail, it may take longer to get your money back if the brokerage were to fail.
These brokerage savings accounts can offer an alternative to traditional savings accounts. They can be a good option for people seeking high interest rates and some robust features. Here’s our look at the top cash management accounts.
» Learn more about cash management accounts: Check out NerdWallet’s guide to CMAs
The best cash management accounts pay interest and typically come with low or no fees. They're offered by brokerage firms, and they combine services and features similar to those of checking and/or savings, all in one product.
Why trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.
Interest rates for the best cash management accounts are much higher than the national average savings account APY, currently just 0.45%.
To provide federal insurance, cash management account providers typically work with partner banks. CMA providers sweep customer deposits into partner bank accounts, where the funds benefit from the bank’s Federal Deposit Insurance Corp. insurance. Keep in mind that even though your money is FDIC-protected if the partner bank were to fail, it may take longer to get your money back if the brokerage were to fail.
These brokerage savings accounts can offer an alternative to traditional savings accounts. They can be a good option for people seeking high interest rates and some robust features. Here’s our look at the top cash management accounts.
» Learn more about cash management accounts: Check out NerdWallet’s guide to CMAs
Best Cash Management Accounts
| Bank/institution | NerdWallet rating | Monthly fee | APY | Bonus | Learn more |
|---|---|---|---|---|---|
 Wealthfront Cash Account Learn more at Wealthfront | Best for Cash Management Account | $0 | 4.50% With $1 min. balance for APY | $30 Requirements to qualify | Learn more at Wealthfront |
 Betterment Cash Reserve – Paid non-client promotion Learn more at Betterment | Best for Cash Management Account | $0 | 5.00% With $0 min. balance for APY | N/A | Learn more at Betterment |
 Empower Personal Cash Learn more at Empower, Deposits are FDIC Insured | Best for Cash Management Account | $0 | 4.70% With $0 min. balance for APY | N/A | Learn more at Empower, Deposits are FDIC Insured |
 Fidelity Cash Management Account | Best for Cash Management Account | $0 | 2.72% With $0 min. balance for APY | N/A | Read review |
 Vanguard Cash Plus Account - Paid non-client promotion Learn more at Vanguard, Deposits are FDIC Insured | Best for Cash Management Account | $0 | 4.15% With $0 min. balance for APY | N/A | Learn more at Vanguard, Deposits are FDIC Insured |
Our pick for
Cash Management Account
$0
4.50%
With $1 min. balance for APY
$30
Requirements to qualify
Why We Like It
Wealthfront Cash Account offers a 4.50% APY, with no fees, and customers receive a debit card which allows them to withdraw cash from more than 19,000 fee-free ATMs as well as make purchases. They can also use their account to pay bills and link to apps such as Venmo and Cash App to send money to friends and family. Direct deposit with payments up to two days early is also available, and Wealthfront Cash customers can get up to $8 million in FDIC insurance coverage through partner banks.
To learn more, read NerdWallet’s full review of the Wealthfront Cash Account.
$0
5.00%
With $0 min. balance for APY
N/A
Why We Like It
The Betterment Cash Reserve cash management account has a promotional rate of 5.00% annual percentage yield for three months once new account holders fund their accounts. To earn that rate, you have to make a deposit within 14 days of opening the account. If you don't, or after the promotion ends, your rate will be a still-competitive 4.50%.
The Cash Reserve account and the companion Betterment Checking account have no fees and no minimum balance requirement beyond the $10 it takes to open the account, and individual accounts receive up to $2 million in FDIC insurance coverage through partner banks. Betterment Checking offers a debit card, mobile check deposit and reimbursement of ATM fees worldwide.
To learn more, read NerdWallet’s full review of Betterment Checking and Betterment Cash Reserve.
Betterment says: "For Cash Reserve, Betterment LLC and Betterment Securities do not charge fees on your CR balance."
Betterment says: "*Current promotional rate; annual percentage yield (variable) is 4.50% as of 9/20/24, plus a .50% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you’ll get the .50% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank; cash transfers to program banks conducted through clients’ brokerage accounts at Betterment Securities."
Betterment says: "Cash Reserve is only available to clients of Betterment LLC, which is not a bank, and cash transfers to program banks are conducted through the clients' brokerage accounts at Betterment Securities. Learn more: https://www.betterment.com/cash-reserve."
Betterment says: "Checking accounts and the Betterment Visa Debit Card provided and issued by nbkc bank, Member FDIC. Checking made available through Betterment Financial LLC. Neither Betterment Financial LLC, nor any of their affiliates, is a bank. Betterment Financial LLC reimburses ATM fees and the Visa® 1% foreign transaction fee worldwide, everywhere Visa is accepted."
Paid non-client promotion: NerdWallet doesn’t invest its money with this provider, but they are our referral partner – so we get paid only if you click through and take a qualifying action (such as open an account with or provide your contact information to the provider). Most importantly, our reviews and ratings are objective and are never impacted by our partnerships. Our opinions are our own. Here is a list of our partners and here’s how we make money.
$0
4.70%
With $0 min. balance for APY
N/A
Why We Like It
Empower Personal Cash (formerly Personal Capital Cash) offers a 4.70% APY as well as robust budgeting features through its solid mobile apps. It also has no fees or minimum balance, which means it’s a pretty low-cost way to earn a high interest rate. Keep in mind, however, that Empower Personal Cash currently doesn’t support cash deposits, cash withdrawals or check writing. Electronic transfers, wire transfers and direct deposits, however, are supported.
Read NerdWallet’s full review of Empower Personal Cash to learn more.
$0
2.72%
With $0 min. balance for APY
N/A
Why We Like It
Fidelity Cash Management Account has no monthly fees or minimum balance requirements, and it offers unlimited ATM fee reimbursement and free check writing. The account carries FDIC insurance of up to $5 million through Fidelity’s partner banks.
For more information, read our full review of Fidelity Cash Management.
$0
4.15%
With $0 min. balance for APY
N/A
Why We Like It
The Vanguard Cash Plus account offers a high-yield interest rate with no minimum balance requirements. The account has no fees as long as you sign up for e-statements; otherwise, the account has an annual fee of $25. Customers can get up to $1.25 million in FDIC insurance on individual accounts through partner banks.
Reviewed in: Sept. 2024. Period considered: Sept. 2024.
Our Nerds say:
"Cash management accounts can be a useful place to park your short-term savings while it earns interest. If you think you might want to use one for regular spending, however, then make sure the account you pick comes with a debit card and free ATM access."
— Chanelle Bessette, NerdWallet banking writer
Frequently asked questions
What is a cash management account?
A cash management account is a hybrid account that offers similar services and features as checking and savings accounts. They aren’t provided by banks; instead, they’re provided by nonbank financial service providers like brokerage and investment firms.
How do cash management accounts work?
Cash management accounts — offered by nonbank financial service providers like brokerage and investment firms — bring checking and savings features under one roof. They typically pay interest and offer tech-savvy features.
Are cash management accounts FDIC insured?
Since CMA providers aren’t banks, they can’t directly offer FDIC insurance to customers’ funds. Instead, providers partner with banks behind the scenes and sweep customers’ cash into bank accounts, thereby allowing banks to extend FDIC coverage to that money.
Since they usually work with multiple partner banks, CMAs tend to offer much higher FDIC insurance limits, even as high as $8 million for individual accounts.
What is the difference between a brokerage account and cash management account?
A brokerage account is an investment account where customers buy, sell and hold types of investments such as stocks and bonds. A cash management account is for short- to medium-term savings and regular spending.
Since most CMAs are offered by brokerage and investment firms, customers can often connect their brokerage account to a CMA and transfer money back and forth under the umbrella of the same provider.
What are some alternatives to cash management accounts?
Some of the best alternatives to cash management accounts include: certificates of deposit (CDs), peer-to-peer lending, high-yield money market accounts (MMAs) and high-yield online savings accounts.
How is cash management defined in consumer finance?
Cash management refers to the way consumers process and determine the usage of their money.
When it comes to cash management accounts, customers can manage the flow of their cash through spending, saving and — usually — investing it all under the same roof.
Last updated on September 4, 2024
To recap our selections...
NerdWallet's Best Cash Management Accounts of 2024
- Wealthfront Cash Account: Best for Cash Management Account
- Betterment Cash Reserve – Paid non-client promotion: Best for Cash Management Account
- Empower Personal Cash: Best for Cash Management Account
- Fidelity Cash Management Account: Best for Cash Management Account
- Vanguard Cash Plus Account - Paid non-client promotion: Best for Cash Management Account
Frequently asked questions
A cash management account is a hybrid account that offers similar services and features as checking and savings accounts. They aren’t provided by banks; instead, they’re provided by nonbank financial service providers like brokerage and investment firms.
Cash management accounts — offered by nonbank financial service providers like brokerage and investment firms — bring checking, savings and/or investment products all under one roof. They typically pay interest and offer tech-savvy features.
Since CMA providers aren’t banks, they can’t directly offer FDIC insurance to customers’ funds. Instead, providers partner with banks behind the scenes and sweep customers’ cash into bank accounts, thereby allowing banks to extend FDIC coverage to that money.
Since they usually work with multiple partner banks, CMAs tend to offer much higher FDIC insurance limits, even as high as $8 million for individual accounts.
A brokerage account is an investment account where customers can put their long-term savings to earn interest. A cash management account is for short- to medium-term savings and regular spending and is meant to be used frequently.
Since most CMAs are offered by brokerage and investment firms, customers can often connect their brokerage account to a CMA and transfer money back and forth under the umbrella of the same provider.
Some of the best alternatives to cash management accounts include: certificates of deposit (CDs), peer-to-peer lending, high-yield money market accounts (MMAs) and high-yield online savings accounts.
To learn more about the similarities and differences of these products, check out this guide from NerdWallet.
Cash management refers to the way consumers process and determine the usage of their money.
When it comes to cash management accounts, customers can manage the flow of their cash through spending, saving and — usually — investing it all under the same roof.
