The best cash management accounts are simply cash accounts that have been offered to users by a financial institution. These institutions are not banks or credit unions. They are individual establishments, oftentimes, a broker or an investment firm. A cash management account owned by a user can be functional as a savings or a checking account.
Furthermore, cash management account operations often imitate the services of a savings or a checking account. What’s more, the best cash management accounts offer great features to their customers like paper checks, FDIC insurance beyond its limits, a debit card, a higher interest rate on savings and so much more.
Yet, there are so many companies that offer you cash management accounts. The struggle only happens when it’s time to select the best cash management accounts. Still, the best cash management account that you can select depends on how much money you plan to deposit. Also, it depends on if your main goal is to earn interest or get easy access to your money. Read on in this article to learn all about the best cash management for you.
How Much Can You Earn In A Cash Management Account?
The amount of money you earn depends on the account you choose. Some cash management accounts pay only a little interest to you. This is usually done by cash management accounts offered by large online brokers. However, some accounts do have yields that correlate with online savings accounts that also have the highest yielding.
Best Cash Management Accounts for 2023
Here are some of the best Cash management accounts you can select for your use:
The Aspiration cash account is pretty excellent for most users as they have an APY when you spend a minimum of $1000 per month. They have a cool feature that includes their minimum opening deposit of $10, their monthly fees rank about $7.99 per month or $71.88 per year.
Also, users get an APY of up to 3.00% on balances under $10,000 and up to 5.00% with Aspiration Plus. When you use Aspiration Plus, it gets you higher rates, more so when you spend $1000 every month at least. In addition to this, you get one out-of-network ATM reimbursement every month, a 0.10% on balances that are over $10,000.
Meanwhile, Personal Capital is listed among some of the best cash management accounts for the best features that it possesses. You get an APY of 3.45% for all its advisory clients, there is no minimum opening deposit and there are also no monthly fees. Personal Capital is known for having the best interest rates to ball its users and they don’t have to meet any requirements.
If you plan to work with Personal Capital as a solo investor, you are likely to need at least $100,000 in assets. However, you can still open a Cash account without an investment account. It works both ways.
One of the things Betterment is good for as a cash management account is the fact that it offers a checking account that correlates well with a cash management account. It also offers a standout cash management account to all its users called the Betterment Cash Reserve account. Furthermore, the Cash Reserve account has tons of beneficial features that are usually linked with savings accounts and even the ability to create savings vessels for various goals.
However, this means that one really can’t withdraw or deposit cash with a debit card. This is how a savings account works. This means that you can only transfer money by electronic means. In addition to this, they have no monthly fees and it only requires a $10 deposit to open an account. It also offers a 2.25% APY on all its balances.
WealthFront Cash Account
This cash account has its own advantageous features that offer the best to all its users. It offers a 3.30% APY as its rate, you can get access to a debit card there are no monthly fees and it has an FDIC insurance limit of $2 million. It is widely known to be a good Robo- advisor and those are some of the best benefits included in its package. What’s more, you can now move money between accounts and as mentioned before, the account comes with a debit card.
Fidelity Cash Management
One reason why Fidelity is chosen as one of the best cash management is its trustworthy services to its customers. Fidelity has a cash management account that comes with good deals and also offers a debit card. With Fidelity cash management, It offers an APY of 1.58% on all its balances, no minimum opening deposit is required and there are no monthly fees needed.
Being a brokerage firm, it offers brokerage accounts to works involving institutional investors, accounts to retail investors, etc. Also, they sell premium market research along with their services in negotiation with financial advisors. Working with Fidelity cash management definitely has its perks.
How Do I Choose the Best Cash Management Account?
You only have to shop around to be able to find the best cash management accounts for your needs. Here are the things you need to consider to select the best cash management account for you:
You need to do more extensive to check if there are any potential fees you might face later on. Even if the cash management accounts state that they do not charge a monthly fee, it is still best to check. This is to avoid any surprises.
Annual percentage yield (APY)
The account interest rate is also a factor that determines how much money you can earn. Still, you should look out for how the rates can change. Also, if there are balance limits on good rates, this is a good sign.
When it comes to selecting the best cash management account, having an existing relationship with a broker or an investment firm you trust helps. This can also help you find the best cash account for your needs.
One of the best ways to select the best cash management account is how access to customer service representatives when you need them. In addition to this, you want to see the accessibility of mobile apps and online tools.
The Account Services
You need to pay serious attention to the services that the cash account service is offering. Do you want the cash account to offer you more investment or savings options? Do you need them to imitate the service of a checking account? It depends on what you want to use your account for.
FDIC insurance coverage is also something that you want to consider before selecting your account. Most cash management account users are more invested in funding their accounts with a higher figure than the $250,000. The $250,000 is usually insured by the FDIC.
Now, if you are to select the best cash management account, they may offer from $500,00 to over a million dollars in FDIC coverage. Of course, they partner with multiple banks to achieve this purpose.
These are some of the best betting factors to consider when you are looking to select the best cash management account.
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