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Building an emergency fund and establishing savings is critical for your financial stability. But the average annual percentage yield (APY) on savings accounts isn't all that great, even when it's high relative to what it usually is.
Cash management accounts (CMAs) are useful alternatives to a traditional savings account. Depending on which account you choose, you could qualify for an APY that is several times higher than the average rate for savings accounts, so your money can grow faster.
Learn how cash management accounts work and some of the top options to help you save.
How we rate products
We selected the leading cash management accounts based on the following factors:
- Minimum deposit required to open an account: We looked for accounts that can be opened with $100 or less, because it's important to be able to save no matter where you are.
- Monthly service fees: We focused on accounts without monthly account fees, as these could eat into interest earnings.
- APYs: To make it on our list, cash management accounts needed to have high interest rates that are on par with or better than those of the best high-yield deposit accounts available (not just today, but historically).
- FDIC insurance limits: We prioritized cash management accounts with insurance coverage beyond the standard $250,000 limit.
Featured cash management account
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- Boost your savings with an APY of 3.50%1 <p>Rate is current as of 11/07/2025.</p>
- No account fees, withdraw anytime
- App Store rating of 4.8/5 stars as of May 2024
- Up to $8 million in FDIC insurance through partner banks
What is a cash management account?
For cash you don't want to invest in stocks or bonds, such as money you're saving for emergencies or for a down payment on a house, a cash management account can be a helpful tool.
Cash management accounts function similarly to savings accounts: You deposit your money, and the account earns interest. As with savings accounts, the account's APY can change as the market fluctuates, but CMAs can earn inflation-beating rates.
These accounts are usually offered by brokerage firms or investing apps rather than banks. They tend to offer more features than savings accounts, often including the option to withdraw cash by writing a check or using a debit card.
How cash management accounts work
Unlike a traditional savings account at a bank or credit union, cash management accounts can take different forms. The two most common are bank and money market sweep accounts.
- Bank sweep: The issuing brokerage firm or company transfers your money into a deposit account with one or more partnering banks or financial institutions. Your money could be spread across several banks, which may get you higher rates.
- Money market sweep: Some CMAs combine cash management with investing. Rather than transferring your money to a savings account, the cash management account transfers your money to low-risk money market mutual funds.
Compare the best cash management accounts of February 2026
Here's how the top cash management accounts we recommend stack up.
| Best for | Account fees | APY | Minimum deposit | |
| Wealthfront Cash Account2 <p>Wealthfront Cash account is offered by Wealthfront Brokerage LLC, Member of FINRA/SIPC. Wealthfront Brokerage is not a bank. We convey funds to partner banks who accept and maintain deposits, provide the interest rate, and provide FDIC insurance. Rate is subject to change.</p> | Earning a high yield | $0 | 3.50%3 <p class="">The product and annual percentage yield (APY) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your area. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. Always verify account details and availability with the financial institution before opening an account.<br></p> | $1 |
| Betterment Cash Reserve4 <p>Betterment Cash Reserve ("Cash Reserve") is offered by Betterment LLC. Clients of Betterment LLC participate in Cash Reserve through their brokerage account held at Betterment Securities. Neither Betterment LLC nor any of its affiliates is a bank. Through Cash Reserve, clients' funds are deposited into one or more banks ("Program Banks") where the funds earn a variable interest rate and are eligible for FDIC insurance. Cash Reserve provides Betterment clients with the opportunity to earn interest on cash intended to purchase securities through Betterment LLC and Betterment Securities. Cash Reserve should not be viewed as a long-term investment option.</p> <p>If you participate in Cash Reserve, you authorize Betterment, on a discretionary basis, to direct Betterment Securities as to the allocation of your funds among one or more Program Banks. Deposits at each Program Bank are insured by the FDIC up to $250,000 for each insurable capacity (e.g. individual or joint). In aggregate, funds deposited into Cash Reserve are eligible for up to $2,000,000 (or $4,000,000 for joint accounts) of FDIC insurance once the funds reach one or more Program Banks (up to $250,000 for each insurable capacity—e.g., individual or joint—at up to eight Program Banks). Even if there are more than eight Program Banks, clients will not necessarily have deposits allocated in a manner that will provide FDIC insurance above $2,000,000 (or $4,000,000 for joint accounts). The FDIC calculates the insurance limits based on all accounts held in the same insurable capacity at a bank, not just cash in Cash Reserve. Although certain types of accounts, such as trust accounts may be eligible for additional FDIC insurance based on the number of beneficiaries, funds will be allocated to each Program Bank in such a way that provides up to $250,000 of FDIC insurance for individual accounts, $500,000 of FDIC insurance for joint accounts, and $250,000 of FDIC insurance for trust and other corporate account types, in each case per Program Bank. In the event you maintain an individual or joint Cash Reserve account and are a beneficiary of a Cash Reserve trust account, Betterment does not provide FDIC insurance based on your status as a beneficiary. If clients elect to exclude one or more Program Banks from receiving deposits the amount of FDIC insurance available through Cash Reserve may be lower. Clients are responsible for monitoring their total assets at each Program Bank, including existing deposits held at Program Banks outside of Cash Reserve, to ensure FDIC insurance limits are not exceeded, which could result in some funds being uninsured. For more information on FDIC insurance please visit www.FDIC.gov. Deposits held in Program Banks are not protected by SIPC. For more information see the full <a href="https://www.betterment.com/legal/cash-reserve">terms and conditions</a> and <a href="https://betterment-prod-cdn.s3.amazonaws.com/agreements/Betterment_LLC_ADV_2023_09_28.docx.pdf">Betterment LLC's Form ADV Part 2</a>.</p> | Investors looking for a robo-advisor | $0 | Up to 3.25% (as of Oct. 24, 2025)5 <p class="">Current promotional rate; annual percentage yield (variable) is 5.00% APY as of April 2, 2024, plus a .50% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you’ll get the .50% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank; cash transfers to program banks conducted through clients’ brokerage accounts at Betterment Securities. </p> | $10 |
| Fidelity Cash Management Account | Investing in a money market fund | $0 | 1.84% (as of 02/05/2026) for cash sweep
3.33% (as of 02/05/2026) seven-day yield for money market fund sweep |
$0 |
| Vanguard Cash Plus Account | Future or existing Vanguard customers | $0 | Up to 3.35% (as of 01/07/2026) | $0 for cash sweep account; $3,000 for money market fund sweep account |
| M1 High-Yield Cash Account | Couples | $3 unless you meet balance requirements or have $10,000 in assets | 3.60% (as of 09/01/25) | $100 |
Wealthfront Cash Account
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- Minimum deposit: $1
- Monthly service fee: $0
- APY: 3.50%
- Check-writing privileges?: Yes
- Debit card access?: Yes
- FDIC coverage: Up to $8 million
Beyond its consistently high rate, one of the things we find most appealing about the Wealthfront Cash Account is its versatility. It's a high-yield cash sweep account with checking features that include the ability to send and deposit checks and use ATMs (with two out-of-network fee reimbursements every month).
New Wealthfront customers can often take advantage of a promotional APY to earn an even higher rate than existing customers, and Wealthfront's APY is usually among the best for cash management accounts, even when rates fluctuate.
One downside — Wealthfront doesn't let you deposit cash. If you work a cash-based job, you'll have to deposit the cash into another checking or savings account, then transfer the money to your cash management account.
- Generally competitive APYs
- Low minimum deposit requirement
- Large ATM network
- No way to deposit cash
- Mixed reviews on TrustPilot
Visit Wealthfront | Learn more in our Wealthfront Cash Account review
Betterment Cash Reserve
- Minimum deposit: $10
- Monthly service fee: $0
- APY: Up to 3.25% (as of Oct. 24, 2025)
- Check-writing privileges?: No
- Debit card access?: No
- FDIC coverage: Up to $2 million
Betterment offers retirement and investing accounts managed by market-leading robo-advisors, making it an excellent option for new investors and those who prefer hands-off investing. The brokerage's cash sweep account makes it easy to move money between spending, saving, and investing.
If you have a Betterment investing account or want one, opening a Betterment Cash Reserve account could make a lot of sense. You can use Cash Reserve to save your uninvested cash and withdraw money without penalty. Like Wealthfront, Betterment often offers promotional APYs for new customers.6 <p class="">Paid non-client of Betterment. Views may not be representative, see more reviews at the <a href="https://apps.apple.com/us/app/betterment-investing-saving/id393156562" target="_blank" rel="noopener noreferrer">App Store</a> and <a href="https://play.google.com/store/apps/details?id=com.betterment&hl=en_US&gl=US&pli=1" target="_blank" rel="noopener noreferrer">Google Play Store</a>. No guarantee of future performance or success is being made. <a href="http://www.betterment.com/affiliate/financebuzz" target="_blank" rel="noopener noreferrer">Learn more</a> about this relationship.<br></p>
Betterment partners with over 20 banks for its cash management accounts. This includes Forbright Bank, Truist Bank, Webster Bank, and Cross River Bank. As a result, it can offer much more FDIC insurance, insuring deposits up to $2 million.
However, you can only access funds electronically with Betterment. You don't have the option to withdraw cash from an ATM or write checks.
- Generally competitive APYs with potential promotions
- $2 million in FDIC insurance
- No monthly service fee
- No cash deposits or withdrawals
- No check-writing privileges
Learn more in our Betterment Cash Reserve review
Fidelity Cash Management Account
- Minimum deposit: $0
- Monthly service: $0
- APY: 3.33% (as of 02/05/2026) seven-day yield for money market fund sweep account; 1.84% (as of 02/05/2026) APY on cash sweep account
- Check-writing privileges?: Yes
- Debit card access?: Yes
- FDIC coverage: Up to $4 million for cash sweep accounts
While some companies offer only cash sweep accounts, Fidelity offers two options: cash sweep or money market fund sweep accounts. If you opt for a money market fund sweep account, you could potentially earn a higher APY and perks like a debit card and ATM fee reimbursement. You could also choose to open a Fidelity Cash Management Account that invests your cash in the Fidelity® Government Money Market Fund for the potential tax benefits and higher rates. If you already have accounts with Fidelity, this account could be worth considering.
Note that Fidelity's cash sweep account has a lower APY than some competitors. Although the cash sweep account is FDIC-insured, the money market fund sweep account is not. Instead, the latter is covered under the Securities Investor Protection Corporation (SIPC), which provides up to $250,000 of coverage if your investment firm fails.
- Offers money market fund sweep accounts and cash sweep accounts
- ATM fee reimbursement
- Lower APY than some competitors
- Limited branch support
Learn more in our Fidelity review
Vanguard Cash Plus Account
- Minimum deposit: $0 for cash sweep account; $3,000 for money market fund sweep account
- Monthly service fee: $0
- APY: Up to 3.35% (as of 01/07/2026)
- Check-writing privileges?: No
- Debit card access?: No
- FDIC coverage: Up to $1.25 million for cash sweep accounts
Vanguard is one of the largest investment companies in the world and a popular manager of workplace retirement plans. If you have a Vanguard investment or retirement account, a Cash Plus account can complement your other accounts.
Like Fidelity, Vanguard has a cash sweep account and a money market fund sweep account. Both accounts boast higher-than-average APYs without monthly fees. However, the money market fund sweep account has a $3,000 minimum deposit.
- No minimum deposit
- Money market fund sweep account available
- Does not offer ATM access or check writing privileges
- Lower APY than some competitors
M1 High-Yield Cash Account
- Minimum deposit: $100
- Monthly service fee: $3
- APY: 3.60% (as of 09/01/25)
- Check-writing privileges?: No
- Debit card access?: No
- FDIC coverage: Up to $4.75 million
For couples looking to manage their money together, the M1 High-Yield Cash Account could be a good fit. M1 offers joint cash sweep accounts, allowing two people to share an account. Like Wealthfront and Betterment, you can often find promotional rates with M1 CMAs as a new customer.
Unlike many other cash management accounts, M1 has a minimum deposit requirement of $100 to start earning interest. And, if the balance between your M1 cash account and investment accounts drops below $10,000, you'll have to pay a $3 monthly fee. These are downsides, to be sure, but M1's unique and highly customizable investing experience could be well worth it. Consider the brokerage's cash accounts if you're interested in investing with M1's personalized pies too.
- Joint accounts available
- May offer promotional APYs
- Minimum deposit required
- Account fees apply
Learn more in our M1 review
How cash management accounts compare to other deposit accounts
Not sure whether a cash management account is right for you? Learn what they have in common with, and how they differ from, common bank accounts.
Cash management accounts vs. checking accounts
Checking accounts are deposit accounts you open with a bank, credit union, or financial technology company. They're intended to be used for regular expenses, like paying your rent or electric bill, and getting paid. Checking accounts rarely earn interest, but some do. However, when they do pay interest, their rates are often very low.
Some cash management accounts have features similar to those of checking accounts, such as the ability to write checks or withdraw cash at an ATM, but they tend to offer much higher APYs.
| Cash management accounts | Checking accounts | |
| Minimum deposit requirement | Typically $0 to $100 | Typically $0 to $100 |
| Monthly service fee | $0 to $3+ | $0 to $15+ |
| Interest | High rates similar to top high-yield savings accounts | Little to no interest |
| Cash access | Varies by account | Debit card, ATM, checks |
Cash management accounts vs. savings accounts
Savings accounts are for parking cash to save for future goals, like a dream vacation or a new car. They earn interest, but they often have deposit requirements. The national average interest rate across savings accounts is 0.39% (as of 1/20/26), according to the FDIC.
Although there are some savings accounts with debit cards, most limit how you access cash and how often. You generally can't use a savings account to write checks or withdraw cash at an ATM. By contrast, cash management accounts provide easier, more flexible cash access.
| Cash management accounts | Savings accounts | |
| Minimum deposit | Typically $0 to $100 | Typically $0 to $100 |
| Monthly service fee | $0 | $0 to $20+ |
| Interest-bearing | Yes | Yes |
| Cash access | Varies by account | Usually does not include debit or ATM cards, checks (usually) |
| Monthly transaction limits | None | May limit monthly transactions/withdrawals (often six) |
Are cash management accounts covered by FDIC insurance?
Because your money is often distributed across several banks with a cash management account, you may be eligible for a higher Federal Deposit Insurance Corporation (FDIC) insurance limit. Under standard FDIC rules, deposits are insured up to $250,000 per bank, per depositor. But by using a cash management account, your money is spread out, which could qualify you for more insurance.
That perk may not seem like a big deal if you don't have a lot of cash in the bank. But as you build your savings and assets, a higher FDIC limit can provide peace of mind.
Pros and cons of cash management accounts
CMA pros
- Cash management accounts often have higher APYs than traditional savings accounts.
- They usually have low minimum deposit requirements.
- They may offer extended FDIC coverage.
CMA cons
- Brokerages may not offer in-person support.
- APYs on cash management accounts are variable.
- Features and accessibility options vary by cash management account.
Drawbacks of cash management accounts and when to consider alternatives
Although cash management accounts can be excellent options for growing your money, there are drawbacks. In some cases, they won't be the right account for you.
- Features and accessibility vary: While some cash management accounts offer perks such as ATM access or check-writing privileges, others do not. If these cash accessibility options are important to you, review the available features before choosing one. Checking accounts and money market savings accounts typically offer debit cards or checks and may provide high interest and/or other rewards.
- APYs can fluctuate: Although these accounts usually have higher-than-usual APYs, the rates are not locked. They can and will change with market conditions. If you want to lock in a higher APY, consider a high-yield certificate of deposit (CD) from a bank or brokerage.
- In-person access is rare: These accounts are offered through online brokerage firms and investment companies, so in-person support is hard to find. If you prefer visiting a physical branch, a brick-and-mortar bank or credit union may be a better choice.
FAQs
Is a cash management account worth it?
A cash management account can be worth opening, depending on your goals, since they can have better rates than traditional savings accounts (and cash access).
What are the disadvantages of a cash management account?
Unlike a savings account, which you open with a bank or credit union, cash management accounts are typically offered by brokerage firms and online investing apps. As a result, you may only be able to contact support through the app or by calling the company.
How do you open a cash management account?
You can usually open a cash management account online within a few minutes. To open an account, visit the site and create an online login. The company will ask for your personal details and, if necessary, request a minimum deposit. You don't typically need to be an existing investing customer to qualify for a CMA.
Bottom line
As you build your savings, a cash management account is one of the best places to park cash. It allows you to earn a competitive APY on your money and typically has low fees and minimum deposit requirements. Plus, you often get added FDIC protection for your money.
Wealthfront, Betterment, and Fidelity offer some of the best cash management accounts. However, there are other options that may be a better match based on your other financial accounts or goals. Consider what features you need from a cash management account, deposit requirements, and APYs to choose the best option, if any.