If you’ve invested with a brokerage firm in recent
years, you may have noticed that your brokerage
offers a product called a cash management
account. These accounts are very similar to
a checking or savings account and typically
provide competitive interest rates, debit cards
and other money management features.
However, those services aren’t always standard.
So what, then, would be the appeal of opening
a CMA with a brokerage? Here are some things
to consider when deciding whether to let your
brokerage help you manage your cash.
HOW ARE CASH MANAGEMENT
ACCOUNTS DIFFERENT FROM
BANK ACCOUNTS?
Perhaps the most crucial distinction between
a CMA and a bank account is that CMAs are
offered by nonbank financial institutions that do