By Jocelyn Ian
In a complicated monetary landscape that presents customers with so many options, it can be difficult to decipher which product is the best fit for you. If you are looking for similar benefits from checking and savings, a consolidated approach of a cash management account may be a possible option for you. These services are often utilized less frequently than traditional savings and checking funds, but they can offer significant advantages to consumers. If you are interested in obtaining some of these benefits, here are some advantages of cash management accounts.
What Are Cash Management Accounts?
It is important to first understand what service and product this is. A cash management account, also known as a CMA is an account that combines features of different types of funds into one system. These services are often provided by nonbank financial service companies. Being as these accounts combine different features of various assets, this can result in a simplified user experience for some consumers.
Cash management accounts vary significantly in their offerings, services, and fees, so it can be helpful to review your options online in advance. NerdWallet offers a great deal of insight into institutions, including reviews. Consider perusing this and other online resources for information and details like Aspiration Reviews. It is always beneficial to read reviews before making decisions.
Higher Interest Rates and Lower Fees
Although cash management firms and portfolios can vary widely in their services and fees, these types of accounts may also offer significantly higher interest rates in comparison to traditional checking funds. Cash management accounts often range between 1-2%, which may yield a more profitable return in comparison to a standard checking account of less than 1%. Financial companies that offer cash management accounts often offer lower fees, as long as the client maintains a minimum balance. Many financial institutions publish information about interest rates and terms online, and it is useful to do your research to support your search for the best financial product fit.
Combined Benefits of Savings and Checking Accounts
Consumers who are multiple account holders may consider opting to consolidate some of their funds into a cash management account. While there may be significant benefits from the often high-interest rates, there is also the ability to quickly have access to your money, as you would in a checking account. The benefit of liquidity of your assets and high-interest rates can be very desirable to clients who wish to have the best of both the checking and savings world. This merged approach may allow a streamlined user experience for some, as the funds are handled together. Some clients even choose to eliminate checking and savings accounts and consolidate their assets within a cash management account due to the benefits and their ability to unite all of the funds through one company.
While there are many options for today’s consumers, cash management accounts can serve as a great option for those interested in a consolidated user experience and higher interest rates. Don’t let yourself get overwhelmed with all of the financial products out there, and consider starting your research today on which product best meets your needs.
