Cash management accounts are designed for storing cash that either isn’t invested yet or won’t be invested. Most offer high FDIC insurance and no monthly fees, but you might be required to open a brokerage account to get one.
What is a cash management account?
A cash management account (CMA) is a handy account that can let you save, spend or invest your money. But CMAs aren’t bank accounts. Most CMAs are offered by brokerages and are linked to brokerage accounts that provide investment options and wealth management services.
CMAs linked to traditional brokerages often support checkwriting capabilities, while the CMAs attached to robo-advisors tend to have great interest rates. Most cash accounts also come with debit cards you can use to access funds at ATMs or make purchases.
And the cherry on top — many CMAs offer great annual percentage yields (APYs) so your uninvested cash continues to grow passively.
The Wealthfront Cash Account is a favorite of ours, offering a very competitive 4% APY with no requirements to get that great rate. It comes with no monthly fees, unlimited withdrawals and an optional debit card. Plus, you don’t need a Wealthfront brokerage account to apply. You can also get a bonus of 0.50% APY boost for three months as a new client or with a successful referral. For extra wealthy investors and savers, this account also offers up to $8 million in FDIC insurance through a deposit sweep program. To open the account, you just need a $1 minimum deposit. However, it’s an online account that can’t accept cash deposits.
APY
4.00%
Fee
$0 per month
Minimum deposit to open
$1
The Wealthfront Cash Account is a favorite of ours, offering a very competitive 4% APY with no requirements to get that great rate. It comes with no monthly fees, unlimited withdrawals and an optional debit card. Plus, you don’t need a Wealthfront brokerage account to apply. You can also get a bonus of 0.50% APY boost for three months as a new client or with a successful referral. For extra wealthy investors and savers, this account also offers up to $8 million in FDIC insurance through a deposit sweep program. To open the account, you just need a $1 minimum deposit. However, it’s an online account that can’t accept cash deposits.
With no monthly fees, up to $2 million in FDIC insurance, unlimited withdrawals and no minimum balance requirements, the Betterment Cash Reserve is a top account. Earn up to 4% APY with no requirements, and new customers can earn up to 4.50% APY if you fund your account within two weeks of opening. There’s just a $10 minimum opening deposit requirement. This account is only available to clients of Betterment LLC, and it doesn’t come with a debit card or checkwriting privileges.
APY
4.00%
Fee
$0
Minimum deposit to open
$10
With no monthly fees, up to $2 million in FDIC insurance, unlimited withdrawals and no minimum balance requirements, the Betterment Cash Reserve is a top account. Earn up to 4% APY with no requirements, and new customers can earn up to 4.50% APY if you fund your account within two weeks of opening. There’s just a $10 minimum opening deposit requirement. This account is only available to clients of Betterment LLC, and it doesn’t come with a debit card or checkwriting privileges.
Pros
High 4% APY with bonus for new customers
Unlimited withdrawals
High FDIC insurance
Cons
No debit card or checks
Must be Betterment client
APY
4.00%
Interest compounding
Daily
Minimum balance to earn interest
$0
APY
4.00%
Fee
$0
Minimum deposit to open
$10
verified_userFDIC Insured
Vanguard Cash Plus Account
With up to 3.65% APY, the Vanguard Cash Plus Account is a competitive option. The account offers next-day transfers, direct deposit, bill paying, mobile checking deposit and unlimited transactions. Vanguard also offers a deposit sweep program, which means you can get high FDIC insurance coverage up to $1.25 million for individual and trust accounts. This CMA has an account service fee of $25 per month, but you can waive it if you opt in to estatements and e-delivery of documents, which you can do upon signing up. But you won’t get a debit card or checkwriting privileges, and you’ll need to be a Vanguard client to apply.
APY
3.65%
Fee
$25 per month
Minimum deposit to open
$0
With up to 3.65% APY, the Vanguard Cash Plus Account is a competitive option. The account offers next-day transfers, direct deposit, bill paying, mobile checking deposit and unlimited transactions. Vanguard also offers a deposit sweep program, which means you can get high FDIC insurance coverage up to $1.25 million for individual and trust accounts. This CMA has an account service fee of $25 per month, but you can waive it if you opt in to estatements and e-delivery of documents, which you can do upon signing up. But you won’t get a debit card or checkwriting privileges, and you’ll need to be a Vanguard client to apply.
Pros
Up to 3.65% APY
No monthly fees with estatements
$0 minimum balance requirement
Unlimited transactions
High FDIC insurance through sweep program
Cons
No debit card or checkwriting
Must be Vanguard client
Annual Percentage Yield (APY)
3.65%
Fee
$25 per month
To waive the fee
waived when you elect e-delivery of documents
APY
3.65%
Fee
$25 per month
Minimum deposit to open
$0
verified_userFDIC Insured
Webull High-Yield Cash Management
The Webull Cash Management Account offers up to 4.1% APY on your uninvested cash, with no monthly fees or minimum balance requirements. Similar to other CMAs, this one also offers up to $1 million in FDIC insurance through a deposit sweep program. To get this account, you’ll need to have a Webull brokerage account, and it doesn’t offer checks or a debit card.
APY
4.10%
Fee
$0 per month
Minimum deposit to open
$0
The Webull Cash Management Account offers up to 4.1% APY on your uninvested cash, with no monthly fees or minimum balance requirements. Similar to other CMAs, this one also offers up to $1 million in FDIC insurance through a deposit sweep program. To get this account, you’ll need to have a Webull brokerage account, and it doesn’t offer checks or a debit card.
Fidelity is a trusted name among brokerages. With the Cash Management Account, you get two options to earn on your uninvested cash: the Fidelity Government Money Market Fund that earns a 4% seven-day yield, or the FDIC-Insured Deposit Sweep Program with a 2.21% annual percentage yield. Fidelity doesn’t charge any monthly fees, there are no opening deposit requirements and it offers the Fidelity Debit Card with unlimited global reimbursements on ATM withdrawals. Fidelity also offers up to $5 million of FDIC insurance with the FDIC-insured Deposit Sweep Program option. But like most CMAs, you must be a Fidelity customer to open the Cash Management Account.
APY
2.21%
Fee
$0 per month
Minimum deposit to open
$0
Fidelity is a trusted name among brokerages. With the Cash Management Account, you get two options to earn on your uninvested cash: the Fidelity Government Money Market Fund that earns a 4% seven-day yield, or the FDIC-Insured Deposit Sweep Program with a 2.21% annual percentage yield. Fidelity doesn’t charge any monthly fees, there are no opening deposit requirements and it offers the Fidelity Debit Card with unlimited global reimbursements on ATM withdrawals. Fidelity also offers up to $5 million of FDIC insurance with the FDIC-insured Deposit Sweep Program option. But like most CMAs, you must be a Fidelity customer to open the Cash Management Account.
Pros
Earn 2.21% or 4% on cash
High FDIC insurance with deposit sweep program
Debit card with ATM reimbursements
No monthly fees or deposit requirements
Cons
Fidelity Government Money Market Fund not FDIC insured
Methodology: How we chose the best cash management accounts
We compared dozens of the best cash management accounts to narrow down our best choices. We favored cash management accounts with spending features, such as offering a debit card and/or checkwriting privileges, unlimited transactions and simple APY tier structures. To be considered in our best list, a cash management account must be widely available and meet this criteria at a minimum:
At least 2.00% APY
$0 monthly fee
No balance requirements to earn APY
How to compare cash management accounts
Consider the following features when comparing CMAs:
Fees. Most cash management accounts don’t require a monthly, quarterly or annual fee to keep the account open, but watch out for paper statement fees.
Eligibility. It’s very common for brokerages to require you to have a brokerage account with them before you can apply for a cash account. There are a handful, though, without that requirement, such as Wealthfront.
Interest. Many CMAs offer rates much higher than what savings accounts offer on average, which is currently
0.42%, as reported by the FDIC.(1)
Investing options. Nearly all CMAs are tied to online or offline brokerages that offer investing capabilities.
FDIC insurance. All cash management accounts are federally insured for at least $250,000, but many offer significantly higher insurance thanks to deposit sweep programs and bank partnerships.
Spending options. Many CMAs offer debit cards or checkwriting, much like a checking account, but still offer interest on your balance.
Compare more top cash management accounts
Narrow down top CMA options by APYs, features and fees. For a better comparison, tick the Compare box on multiple options to see the benefits side by side.
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What is the Finder Score?
The Finder Score crunches over 300 checking accounts from hundreds of financial institutions. It takes into account the product's monthly fees, overdraft fees, opening deposit, customer support options, ATM network and features — this gives you a simple score out of 10.
To provide a Score, Finder’s banking experts analyze hundreds of checking accounts against what we consider is the best option: no monthly fees, no overdraft fees, a large ATM network of 50,000 or more, additional features outside of typical banking services, and the optional perk of earning interest. Accounts that are nearly free to maintain and use are scored the highest, while accounts with costly fees and few features are scored the lowest.
Do I need a brokerage account before opening a cash management account?
Not all brokerages require you to have an investment account before opening their cash management account, but several do. For example, the Fidelity Cash Management Account, Webull Cash Management Account and Betterment Cash Reserve all require you to be a client of their brokerage accounts before applying for their CMA.
Are cash management accounts safe?
Yes, and you’ll find most very high FDIC insurance coverage amounts.
Any uninvested funds kept in a cash management account are safe if they’re backed by the FDIC. Certain brokerages can offer a greater level of FDIC insurance because they partner with multiple banks. If you plan on keeping more than $250,000 in your CMA, make sure it’s protected beyond the federal minimum.
Bottom line
If your main draw to CMAs was the ability to spend with a debit card while earning interest on your uninvested cash, but you’d rather not open a brokerage account, consider interest-bearing checking accounts.
If you don’t care about spending features, a high-yield savings account might be an easier route to earn APY on your cash.
Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto.
Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt.
Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others.
Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio
Bethany's expertise
Bethany has written 435 Finder guides across topics including:
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