The top cash management accounts of May 2024.

Managing money can be made easier with cash management accounts, which offer a convenient alternative to traditional banking.

A combination of checking and savings account features allows users to enjoy the benefits of both, including depositing cash, earning high interest rates, writing checks, using a debit card, making mobile check deposits, and having free ATM access.

Nonbank products such as cash management accounts are typically offered through online brokerages, mobile investing apps, and robo-advisors. These accounts allow for the management of checking, savings, and investments all in one place, making it easy to transfer funds between accounts.

We compared numerous cash management accounts and selected those that offer high rates, easy access to funds, and high FDIC insurance limits. Our methodology explains how we chose the best cash management accounts.

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Best for high FDIC insurance limit

For those seeking a robo-advisor option with a large FDIC insurance coverage limit, Wealthfront Cash Account is the ideal choice.

Wealthfront's Cash Account provides the highest FDIC insurance limit we found on cash management accounts at up to $8M through its partner banks. Additionally, it offers 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, and paychecks up to two days early with direct deposit.

Best for investors

If you want to consolidate your accounts with Empower, which offers a range of investment and personal finance products, Empower Personal Cash is ideal for you.

The Empower Personal Cash account offers a range of standout benefits, including access to Empower's popular dashboard interface, free tools such as a Retirement Planner and an Investment Checkup, a competitive 4.70% APY with no fees or minimums, FDIC coverage of up to $5 million, and unlimited monthly transfers with withdrawal limits of up to $100,000 per day.

Best for large balances

Those with large balances can benefit from Interactive Brokers' high APYs, making it the best option for them.

Interactive Brokers offers a 4.83% APY on balances over $10,000, as well as other standout features such as up to $2.75 million in coverage (up to $2.5 million of FDIC insurance 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 suitable for more experienced investors due to its higher risk level.

Best for welcome bonus

What is Betterment Cash Reserve? It is a robo-advisor option that provides new Betterment customers with one of the highest cash management account returns and unique checking account perks.

New customers can enjoy a boosted APY of 5.50% on their Betterment Cash Reserve account by opening their first account with a minimum $10 deposit. This is in addition to the current APY of 4.75%. With a Betterment debit card, account holders will receive cash-back rewards at popular brands such as Costco, adidas®, and Sam's Club. Other standout features include zero monthly fees, no overdraft fees, FDIC insurance coverage up to $2 million, and unlimited withdrawals with ATM fees reimbursed worldwide.

Best from a brokerage

None

FDIC insurance coverage

FDIC insurance covers deposits in program banks, up to certain limits.

Pros and cons of cash management accounts

Like other financial tools, cash management accounts have their advantages and disadvantages that should be weighed.

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

Bottom line

High-yield savings account interest rates, checking account liquidity, and easy investment opportunities are all features of cash management accounts that make them stand out.

Why trust CNBC Select?

At CNBC Select, our goal is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions regarding their finances. Our cash management account reviews are based on thorough reporting by our team of expert writers and editors, who possess extensive knowledge of banking and investing products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently, without any input from our commercial team or external third parties. We uphold the highest journalistic standards and ethics. For more information on our methodology, please refer to our website.

Our methodology

CNBC Select evaluated cash management accounts based on these factors to determine the top ones.

Interest rates
Account minimums
Fees
FDIC insurance limits
Debit card, ATM networks and access to funds
Customer reviews

We made our recommendations based on the highest APYs, FDIC insurance coverage limits, lowest fees, and minimums, as well as wide access to funds.

The interest rates on cash management accounts are subject to change at any time, and any investment earnings are subject to market fluctuations. The overall earnings depend on associated fees, balance, and contributions made to the cash management account. Some investing platforms require an existing investing account to open a cash management account.

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