BEST OF
7 Best Cash Management Accounts
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 0.05%.
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.
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 0.05%.
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
| Bank/Institution | NerdWallet Rating | Monthly Fee | APY | Learn More |
|---|---|---|---|---|
$0 | 0.25% With $500 minimum balance | at SoFi | ||
$0 | 0.40% With $0 minimum balance | at Betterment | ||
$0 | 0.35% With $1 minimum balance | at Wealthfront | ||
$0 | 1.00% With $0 minimum balance | at Aspiration, Deposits are FDIC Insured | ||
$0 | 0.05% With $0 minimum balance | Read review | ||
$0 | 0.30% With $0 minimum balance | Read review | ||
$0 | 0.01% With $0 minimum balance | Read review |
at SoFi
SoFi Money®
Monthly Fee
APY
With $500 minimum balance
Bonus
Requirements to qualify
at SoFi
at Betterment
Betterment Cash Reserve
Monthly Fee
APY
With $0 minimum balance
Bonus
at Betterment
at Wealthfront
Wealthfront Cash Account
Monthly Fee
APY
With $1 minimum balance
Bonus
at Wealthfront
at Aspiration, Deposits are FDIC Insured
Aspiration Spend & Save Account
Monthly Fee
APY
With $0 minimum balance
Bonus
at Aspiration, Deposits are FDIC Insured
Personal Capital Cash™
Monthly Fee
APY
With $0 minimum balance
Bonus
Robinhood Cash Management
Monthly Fee
APY
With $0 minimum balance
Bonus
Fidelity Cash Management Account
Monthly Fee
APY
With $0 minimum balance
Bonus
Last updated on March 12, 2020
To recap our selections...
NerdWallet's Best Cash Management Accounts
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.
