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6 Best Cash Management Accounts

Chanelle BessetteMarch 12, 2020

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The best cash management accounts pay interest and typically come with low or no fees. The emergency Federal Reserve rate cuts in March 2020 have affected the interest rates on many financial products, including cash management accounts. Though APYs have seen some big cuts, the interest rates for some cash management accounts remain higher than the national average savings account APY, currently just 0.06%.

Cash management accounts are cash accounts offered by nonbank financial service providers, such as brokerages. These hybrid accounts combine services and features similar to those of checking, savings and/or investment accounts, all in one product.

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 FDIC insurance.

These brokerage savings accounts, which are relatively new to the financial product scene, offer an alternative to traditional savings accounts. They could be a good option for people seeking higher-than-average interest rates and some robust features. Here’s our look at the top cash management accounts.

» Want to learn more about the basics of cash management accounts? Check out NerdWallet’s guide to this banking product.

Summary of Best Cash Management Accounts

BankNerdWallet Rating Monthly FeeAPYLearn More
Aspiration Spend & Save Account

Aspiration Spend & Save Account

at Aspiration,

Deposits are FDIC Insured

$0

1.00%

With $0 minimum balance

at Aspiration,

Deposits are FDIC Insured

Betterment Cash Reserve

Betterment Cash Reserve

at Betterment

$0

0.40%

With $0 minimum balance

at Betterment

Wealthfront Cash Account

Wealthfront Cash Account

at Wealthfront

$0

0.35%

With $1 minimum balance

at Wealthfront

SoFI Money®

SoFI Money®

at SoFi

$0

0.20%

With $0 minimum balance

at SoFi

Personal Capital Cash™

Personal Capital Cash™

$0

0.05%

With $0 minimum balance

Read review
Fidelity Cash Management Account

Fidelity Cash Management Account

$0

0.01%

With $0 minimum balance

Read review
Aspiration Spend & Save Account

at Aspiration,

Deposits are FDIC Insured

Aspiration Spend & Save Account

Aspiration Spend & Save Account

Monthly Fee

$0

APY

1.00%

With $0 minimum balance

Bonus

N/A

at Aspiration,

Deposits are FDIC Insured


Bonus

N/A

Why we like it

Aspiration’s Spend & Save is a cash management account that offers cash-back rewards on every purchase, bonus rewards for spending at socially conscious businesses, a 1.00% APY on the “Save” aspect of the account, a “choose your own monthly fee” feature, no ATM fees worldwide and cell phone protection insurance. The account also has a unique socially conscious feature: Customers receive a score for how often they shop at sustainable businesses. In addition, Aspiration gives 10% of its earnings to charity.

Read Full Review
Betterment Cash Reserve

at Betterment

Betterment Cash Reserve

Betterment Cash Reserve

Monthly Fee

$0

APY

0.40%

With $0 minimum balance

Bonus

N/A

at Betterment


Bonus

N/A

Why we like it

The Betterment Cash Reserve cash management account has an annual percentage yield of 0.40%. The Cash Reserve account and the companion Betterment Checking account have no fees and no minimum balance requirement. Betterment Checking offers a debit card and reimburses ATM fees worldwide, but doesn’t currently allow check deposits or check writing. Those features are expected to be available in the near future.

Read Full Review
Wealthfront Cash Account

at Wealthfront

Wealthfront Cash Account

Wealthfront Cash Account

Monthly Fee

$0

APY

0.35%

With $1 minimum balance

Bonus

N/A

at Wealthfront


Bonus

N/A

Why we like it

Wealthfront Cash Account offers a 0.35% APY, with no fees. If you want to take advantage of the APY, however, keep in mind that it’ll be hard to access your cash on the fly from this account. There is currently no way to withdraw or deposit cash or write or deposit checks. To fund or withdraw from this account, customers have to use electronic transfer to or from an outside bank account.

Read Full Review
SoFI Money®

at SoFi

SoFI Money®

SoFI Money®

Monthly Fee

$0

APY

0.20%

With $0 minimum balance

Bonus

N/A

at SoFi


Bonus

N/A

Why we like it

SoFi’s cash management account, SoFi Money, offers a 0.20% interest rate, and it has no monthly account fees, no minimum balance, no overdraft fees, no ATM fees and no foreign transaction fees. Other benefits include peer-to-peer money transfers, free physical checks and FDIC insurance up to $1.5 million through SoFi’s partner banks. The downsides are that there are no physical branches; no cash deposits are accepted; and customer service options are limited to daytime and evening phone support, email and Twitter.

Read Full Review

Personal Capital Cash™

Personal Capital Cash™

Monthly Fee

$0

APY

0.05%

With $0 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

Personal Capital Cash offers a 0.05% APY — 0.10% for advisory clients — as well as robust budgeting features through its highly rated app. It also has no fees or minimum balance. Keep in mind, however, that Personal Capital Cash currently doesn’t support cash deposits, cash withdrawals or check writing. Electronic transfers, wire transfers and direct deposits, however, are currently supported.

Read Full Review

Fidelity Cash Management Account

Fidelity Cash Management Account

Monthly Fee

$0

APY

0.01%

With $0 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

Fidelity Cash Management Account has no monthly fees or minimum balance requirements, and it offers ATM fee reimbursement and free check writing. The account carries FDIC insurance of $1.25 million through Fidelity’s partner banks. Keep in mind, however, that the 0.01% APY for this account isn’t very high compared with other recommended accounts.

Read Full Review

Last updated on March 12, 2020

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.

Check out our list of the best cash management accounts on the market.

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.

A brokerage account is an investment account where customers can put away 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.