Best cash management accounts of September 2024 (2024)

Cash management accounts can be a good alternative to traditional banking if you're looking for a convenient way to manage your money.

These accounts combine the best of both a checking and savings account. Users can benefit from savings account features like depositing cash and earning above-average interest rates, while also being able to write checks, use a debit card, make mobile check deposits and enjoy free ATM access.

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.

CNBC Select compared dozens of options to determine the best cash management accounts. Those that made our list offer above-average rates, easy access to your funds and high FDIC insurance limits. (Seeour methodologyfor more information on how we chose the best cash management accounts.)

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.

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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.

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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.

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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: New customers can get a boosted APY on their Betterment Cash Reserve: Open your first account and getan extra 0.75% APY for three monthswith a minimum $10 deposit. Since the APY is currently 4.75%, new account holders can earn a whopping 5.50% APY. 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.

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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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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

5.00% APY

Minimum balance

None

FDIC insurance coverage

Up to $8 million

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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

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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

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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; up to 5.50% APY with new customer boost

Minimum balance

Minimum $10 deposit

FDIC insurance coverage

Up to $2 million

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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 reimbursem*nts 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

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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

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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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