5 Best Cash Management Accounts
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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 0.42%.
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 |
|---|---|---|---|---|---|
4.5/5 | $0 | 4.25% With $1 min. balance for APY | $30 Requirements to qualify | Learn moreLearn more at Wealthfront | |
4.5/5 | $0 | 4.75% With $0 min. balance for APY | N/A | Learn moreLearn more at Betterment | |
3.5/5 | $0 | 4.70% With $0 min. balance for APY | N/A | Learn moreLearn more at Empower, Deposits are FDIC Insured | |
4.5/5 | $0 | 2.72% With $0 min. balance for APY | N/A | ||
 Vanguard Cash Plus Account - Paid non-client promotion Learn moreLearn more at Vanguard, Deposits are FDIC Insured | 4.0/5 | $0 | 3.90% With $0 min. balance for APY | N/A | Learn moreLearn more at Vanguard, Deposits are FDIC Insured |
Our pick for
Cash Management Account
Monthly fee
$0
APY
4.25%
With $1 min. balance for APY
Bonus
$30
Requirements to qualify
Monthly fee
$0
APY
4.75%
With $0 min. balance for APY
Bonus
N/A
Monthly fee
$0
APY
4.70%
With $0 min. balance for APY
Bonus
N/A
Monthly fee
$0
APY
2.72%
With $0 min. balance for APY
Bonus
N/A
Monthly fee
$0
APY
3.90%
With $0 min. balance for APY
Bonus
N/A
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.
» Want to compare? Check out CMAs versus brokerage accounts
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
NerdWallet's Best Cash Management Accounts
- 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
- 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, savings and/or investment products all 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 and cash management account?
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.
- 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.
To learn more about the similarities and differences of these products, check out this guide from NerdWallet.
- 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.