Cash management accounts are considered “nonbank” products, generally offered through online brokerages, mobile investing apps and robo-advisors. With checking, savings and investments all managed under the same roof, you can easily move money from one account to another.
These accounts combine savings account features, like depositing cash and above-average interest rates, while also being able to write checks, use a debit card, make mobile check deposits and enjoy free ATM access.
CNBC Select picked the best cash management accounts, based on a variety of factors. See our methodology for more information on how we made our choices.
Best cash management accounts
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Best for high FDIC insurance limit
Wealthfront Cash Account
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Annual Percentage Yield (APY)
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Minimum balance
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Monthly fee
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Maximum transactions
Unlimited transfers and free same-day withdrawals
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FDIC insurance coverage
Pros
- Above-average APY
- No minimum balance or deposit
- No monthly fee
- Unlimited transfers and free same-day withdrawals
- FDIC insurance up to $8 million
Who’s this for? Wealthfront Cash Account is a robo-advisor option for those wanting a large FDIC insurance coverage limit.
Standout benefits: The Wealthfront Cash Account offers the highest FDIC insurance limit we found on cash management accounts at up to $8M through Wealthfront’s partner banks. Other standout features include one of the highest APYs with no minimums or caps, zero account fees, debit card and fee-free ATM access, unlimited transfers and free same-day withdrawals, plus paychecks up to two days early with direct deposit.
Best for investors
Empower Personal Cash™
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Annual Percentage Yield (APY)
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Minimum balance
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Monthly fee
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Maximum transactions
Unlimited number of monthly transfers; withdrawal limits of up to $100,000 per day
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FDIC insurance coverage
Pros
- Above-average APY
- No minimum balance or deposit
- No monthly fee
- Unlimited monthly transfers
- FDIC insurance up to $5 million
Cons
- Withdrawal limit up to $100,000 per day
- No debit card or Bill Pay access
Who’s this for? Empower Personal Cash is ideal if you want to consolidate your accounts with Empower, which offers a range of investment and personal finance products.
Standout benefits: Empower Personal Cash includes access to Empower’s well-liked dashboard interface, built for investors with free tools like a Retirement Planner and an Investment Checkup. Other standout features include 4.70% APY with no fees or minimums, FDIC coverage of up to $5 million, unlimited monthly transfers and withdrawal limits of up to $100,000 per day.
Best for large balances
Interactive Brokers
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Annual Percentage Yield (APY)
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Minimum balance
Over $10,000 to earn high APY
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Monthly fee
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Maximum transactions
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FDIC insurance coverage
Pros
- Above-average APY
- No monthly fee
- FDIC insurance up to $2.5 million
Cons
- Over $10,000 minimum to earn high APY
Who’s this for? Interactive Brokers reserves high APYs for those with large balances, so it’s best for those who would qualify.
Standout benefits: Interactive Brokers lets users earn 4.83% APY on balances over $10,000. Other standout features include up to $2.75 million in coverage (up to $2.5 million of FDIC insurance through its insured bank deposit sweep program and $250,000 in SIPC coverage), direct deposit, mobile check deposit and Bill Pay, debit card and fee-free ATM access and margin trading, which is geared toward more savvy investors due to its riskier nature.
Best for welcome bonus
Betterment Cash Reserve
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Annual Percentage Yield (APY)
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Minimum balance
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Monthly fee
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Maximum transactions
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FDIC insurance coverage
Pros
- Above-average APY
- Opportunity to boost APY for 3 months
- No monthly fee
- Unlimited withdrawals
- FDIC insurance up to $2 million
Cons
- Boosted APY is only for new Betterment customers
- $10 minimum deposit
Who’s this for? Betterment Cash Reserve is a robo-advisor option that offers new Betterment customers one of the highest cash management account returns we found, as well as unique checking account perks.
Standout benefits: Since Betterment Cash Reserve comes with a Betterment debit card, account holders will be automatically eligible for cash-back rewards at brands like Costco, adidas® and Sam’s Club. Other standout features include zero monthly fees, no overdraft fees, FDIC insurance coverage up to $2 million, unlimited withdrawals and ATM fees reimbursed worldwide.
Best from a brokerage
Fidelity Cash Management Account
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Annual Percentage Yield (APY)
2.72% APY on cash balances up to $5 million
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Minimum balance
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Monthly fee
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Maximum transactions
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FDIC insurance coverage
Deposits swept into the program bank(s) are eligible for FDIC Insurance, subject to FDIC insurance coverage limits
Pros
- Above-average APY
- No minimum balance or deposit
- No monthly fee
- FDIC insurance
Cons
- Lower APY than other cash management accounts
Who’s this for? Fidelity is a staple in the investing world and the Fidelity Cash Management Account is for anyone who wants a cash management account from a big name. With a brokerage, you can quickly take advantage of investment opportunities and easily move money into your linked investment accounts.
Standout benefits: The Fidelity Cash Management Account has many features that make it one of the best. It has no account fees or minimums, fee-free debit/ATM card, ATM fees reimbursed globally, checkwriting, mobile check deposit and Bill Pay, FDIC insurance on cash balances, access to a range of investment options, plus free online transfers between Fidelity accounts and bank accounts.
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More on our top cash management accounts
Wealthfront Cash Account
Wealthfront is best known as a robo-advisor that offers automated investing services. It uses over two dozen partner banks to provide FDIC insurance on deposits and offers a debit card issued by Green Dot Bank.
APY
4.50% APY
Minimum balance
None
FDIC insurance coverage
Up to $8 million
Empower Personal Cash
Empower is one of the nation’s largest retirement plan providers and provides a range of other useful financial products and tools, including a highly-rated budgeting app. Empower is not a bank itself, all bank deposit products are provided by UMB Bank. Debit cards and bill pay are not available with Empower Personal Cash yet, but according to Empower’s website, it hopes to introduce these features in the future.
APY
4.70% APY
Minimum balance
None
FDIC insurance coverage
Up to $5 million
Interactive Brokers
Interactive Brokers is an investment trading platform. It is a broker, not a bank, but eligible IBKR clients can get up to $2.5 million of FDIC insurance through its insured bank deposit sweep program plus $250,000 in SIPC coverage for a total coverage of $2.75 million. Interactive Brokers used to offer a debit card, but has since discontinued it.
APY
4.83% APY
Minimum balance
Over $10,000 to earn high APY
FDIC insurance coverage
Up to $2.5 million
Betterment Cash Reserve
Betterment was one of the first-ever robo-advisors on the scene. Its Cash Reserve product offers no monthly maintenance costs, high insurance coverage and unlimited withdrawals. Betterment spreads deposits across over a dozen program banks to offer up to $2 million in FDIC insurance ($4 million for joint accounts). The Betterment Visa Debit Card is only available if you open a checking account, not the Cash Reserve.
APY
4.75% APY
Minimum balance
Minimum $10 deposit
FDIC insurance coverage
Up to $2 million
Fidelity Cash Management Account
Fidelity is a big-name brokerage with more than 200 Investor Centers in the U.S., making it a top choice for those who value in-person support. Cash balances in the Fidelity Cash Management Account are swept into an FDIC-Insured interest-bearing account at one or more of Fidelity’s 24 program banks. The Fidelity Debit Card is issued by PNC Bank and offers ATM fee reimbursements globally.
APY
2.72% APY on cash balances up to $5 million
Minimum balance
None
FDIC insurance coverage
Deposits swept into the program bank(s) are eligible for FDIC Insurance, subject to FDIC insurance coverage limits
Pros and cons of cash management accounts
As with other banking and investment vehicles, there are some benefits and drawbacks to consider with cash management accounts. Here are their pros and cons.
Pros of cash management accounts
- Streamlines account management
- Higher interest rates than standard checking and savings accounts
- Debit card plus ATM access
- Possibly more FDIC coverage through bank sweep programs
- Instantly transfer funds between savings and checking
- Good for short-term savings goals and everyday spending
- Easy to get started investing
Cons of cash management accounts
- Higher returns elsewhere
- Some have large minimum deposit requirements
- No in-person banking
- Customer support can be limited
- Not ideal for long-term savings goals
- May require having investing account already
FAQs
Is it a good idea to have a cash management account?
It can be a good idea to have a cash management account because it offers the best of both a checking and savings account, as well as investment access. They’re especially attractive for large cash balances since they offer much higher insurance coverage limits than you’d otherwise get with a single bank account.
What is the minimum deposit for a cash management account?
Some of the top cash management accounts have zero minimum deposit required.
What is the interest rate for a cash management account?
The interest rate for a cash management account generally ranges from high 2% APY to around 5% APY.
What is the FDIC limit for cash management accounts?
The FDIC limit for cash management accounts varies by investing platform, typically from $2 million to $8 million. Since cash management accounts can’t directly offer FDIC insurance, they often partner with multiple banks and sweep customers’ cash into their FDIC-insured bank accounts.
Are cash management accounts taxable?
Any interest or earnings on cash management accounts is taxable.
What is another name for a cash management account?
Another name for a cash management account is its abbreviation CMA.
What is the purpose of a cash management account?
The purpose of a cash management account is to streamline your financial account management by also offering above-average savings rates, checking account features and investing options.
How does a cash management account work?
A cash management account works as an all-in-one checking, savings and investment platform with typically high FDIC insurance coverage limits since money is swept into partner bank accounts.
Bottom line
Cash management accounts stand out because they combine high-yield savings account interest rates with the liquidity you get from a checking account, while also allowing you to invest easily.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every cash management account review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking and investing products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best cash management accounts.
Our methodology
To determine the top cash management accounts, CNBC Select compared accounts based on the following factors:
- Interest rates
- Account minimums
- Fees
- FDIC insurance limits
- Debit card, ATM networks and access to funds
- Customer reviews
After reviewing the above features, we based our recommendations on platforms offering the highest APYs and FDIC insurance coverage limits, lowest fees and required minimums, as well as wide access to funds.
Interest rates on cash management accounts are variable and can change at any time, and any investment earnings are subject to fluctuations in the market. Earnings overall depend on any associated fees, your balance and the contributions you make to your cash management account. Some investing platforms offering cash management accounts require you to already have an investing account open.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
