Bankrate: Cash Management Accounts
Bankrate writes about the "Best cash management accounts in April 2021." The piece tells us, "Cash management accounts can often be overlooked as a way to deliver value. If you're on the hunt for a great robo-advisor or online broker, don't forget the extra tangible benefits a good cash management account can provide. As fees decline, brokers and robo-advisors are competing increasingly on feature-rich services to differentiate themselves -- and that means value for you! Many top cash management accounts (CMAs) offer a ton of features and benefits. Some of the most popular or desirable features include: A competitive annual percentage yield (APY); Fee-free ATMs; A checking account; Debit card; No monthly fee; No overdraft fees; Early paycheck direct deposit; 'Round-up' investing; [and] A portfolio line of credit." BankRate explains, "The distinction between a brokerage account and a traditional bank account continues to collapse. Increasingly there are more and more financial institutions that do it all. So in many cases you could actually use the cash management account as a primary bank account even if you don't take advantage of the related investing features at all. And that's a reason to check out brokers and robo-advisors to see how they compete against a traditional bank and whether it might make sense to move at least some of your business there." Bankrate lists the best cash management accounts for the upcoming month as: Wealthfront, Interactive Brokers and Fidelity. The article concludes, "While you might be looking for a traditional bank account or even a popular fintech app, don't overlook the benefits of using a broker or robo-advisor for your cash management account. You often won't have to use the investing features, but they'll be there as your financial life grows."
