What to Look For in the Best Cash Management Accounts
Using a cash management account is a great way to earn a higher rate of interest on your money. Many accounts offer high potential returns, low fees, and even the ability to manage your money with the aid of a robo-advisor. However, not all cash management accounts are created equal. Read on to learn more about what to look for in a cash management account.
SoFi Bank
Founded by business school students at Stanford, SoFi is a digital financial services company that offers both checking and savings accounts. It also provides credit cards, personal loans, and refinancing options.
SoFi launched SoFi Money, which is a cash management account. It offers competitive interest rates and many extra benefits. The account requires a monthly deposit of at least $500. You will receive a $100 welcome bonus. You can also get a two-day early paycheck.
The account offers fee-free overdraft protection. If you overdraw your account, SoFi will reimburse you for up to $50. It also has a debit card, which allows you to make purchases online and at nearly any ATM in the world. The card takes about 5-7 days to arrive. You can make up to 12 transactions a day, with a $150 over-the-counter cash withdrawal limit.
Fidelity
Whether you are just starting to save or you want to invest in the stock market, a Fidelity Cash Management Account (CMA) can help you manage your finances. These accounts are a combination of checking and savings accounts, and they offer a number of features that make it easy to track your money.
One of the best features of a CMA is its high FDIC insurance. This is a federal program that insures deposit products up to $250,000 per bank, even if the bank is not an institution that Fidelity is affiliated with.
FDIC-insured
Unlike traditional savings accounts, FDIC-insured cash management accounts allow you to deposit, earn interest and transfer funds within one institution. Some of these accounts even come with free ATM usage, mobile check deposit and ATM rebates.
Although cash management accounts can be a good choice for people with large amounts of cash on hand, they’re not for everyone. If you don’t have $250,000 or more on hand, you might be better off sticking with a standard savings account.
No or very low fees
Whether you’re interested in investing, saving, or just wanting to get a better handle on your finances, cash management accounts could be right for you. They combine the best features of a savings and checking account into one, and they can help you earn interest. However, a cash management account doesn’t have all of the same features as a traditional checking account, and it might not be the best option for everyone.
If you’re looking to get into the investment game, the best cash management accounts can help you do it easily and efficiently. There are several advantages to these accounts, including the ability to link your funding sources to make the most of your money.
High potential return of 2.6%
Whether you are looking to start investing in a high interest savings account or are just looking for a flexible place to keep your cash, a cash management account can offer you some great features. These accounts may be provided by your bank, a robo-advisor or a broker. These accounts are a blend of checking and savings accounts, and they often include some interesting features, such as interest and debit cards.
While these accounts aren’t as lucrative as some of the leading high-yield savings accounts, they do have some advantages. For instance, they can offer FDIC insurance. Typically, these accounts are able to provide you with a higher FDIC insurance limit than a bank can. You can also receive free ATM withdrawals.
No minimum deposit requirement
Whether you’re looking for a way to save money, invest, or pay bills, there are cash management accounts that will suit your needs. These are similar to savings accounts and checking accounts, but with a few extra features.
Unlike a savings account, a cash management account is not subject to minimum balance requirements. It is also often free of fees, including ATM withdrawals. Most of these accounts also offer a debit card. You can make deposits with your checkbook or through the mobile app. You may be able to earn interest on your money as well.
Robo-advisor
Often offered by robo-advisors, cash management accounts are a way for investors to get into investing without having to set up an investment account or learn complex investing techniques. These accounts offer features similar to a traditional savings account and can earn interest.
Typically, these accounts are offered by brokerage firms or non-bank financial institutions. The main benefit is that they can combine checking and savings into one, while still allowing you to make investments. These accounts can be used as a primary bank account or an alternative to high-yield savings accounts.
Syfe Cash+ or Endowus Cash Smart Secure
Unlike traditional bank deposits, Syfe Cash+ is an alternative investment which offers a higher yield. It also offers greater liquidity and lower credit risk. It can also help shelter you from volatility when interest rates rise. It is the smarter home for your hard-earned money.
There are four different investment portfolios offered by Syfe. Each portfolio has a similar underlying fund. But the way these funds are allocated in the portfolio can vary. This may impact the overall portfolio’s value.
