Cash Management Account
In deposit terminology, the term Cash Management Account refers to a type of account offered by brokerage companies and other financial institutions. This type of account combines a brokerage account with a checking account.
For example, a Cash Management Account will often allow a customer to buy and sell stocks, options, bonds and commodities, while at the same time allowing them to earn money market interest on cash balances. In addition, the Cash Management Account acts as a checking account by allowing the account holder to write checks against cash balances. Many of these accounts also include access via a credit or debit card whereby cash funds are made readily available to account holders. A hefty minimum deposit is generally required to open a Cash Management Account, although the advantages that these accounts offer wealthier and more active investors that manage their own portfolios tend to outweigh the disadvantages.