As an adult, there are so many responsibilities that we have to learn to face. Earning and saving money is also one of them. Keeping account of the flow of your cash can be difficult. But, that does not mean it is impossible and I will discuss in this context the importance of the cash management account for business.
People do use several different accounts in the bank to keep their money. It is not only for security but also to keep track of the money.
Accounts such as the saving accounts and the checking accounts are the most used ones. But, some people make the vigilant decision to use a cash management account.
The best cash management account for business will provide you with an interest that is higher than average. These accounts act as both a checking account and a savings account.
Additionally, they save you so much time. You can easily track your cash flow through only one account, which is through this account.
- What Is Cash Management Account
- How Do Cash Management Account Work For Your Business
- What Does A Cash Management Account Cost?
- What Is The Difference Between Cash Management Account and Online Checking Account?
- Are Cash Management Accounts Safe?
- Why You Should Get A Cash Management Account?
- How To Open A Cash Management Account For Business?
- What Is The Best Cash Management Accounts for Business?
- Bottom Line
What Is Cash Management Account
A cash management account is typically a service provided by non-financial institutions that help keep track of the ins and outs of your cash flow. These accounts work as both a savings account and a checking account and offer instant debit cards online.
Along with keeping track of your money, the best feature about this account is that it provides you with a higher-than-average interest. These accounts simplify the money management process for you.
If you are someone who doesn’t like human interactions, then this account will serve you well. You do not need to do face-to-face transactions if you open a cash management account. Easily transfer money using the account and routing number.
How Do Cash Management Account Work For Your Business
Cash management accounts are outstanding for everyone. Anyone can use these accounts individually or even for business purposes.
It is crucial to manage money the right way for business if you want to succeed in your business. There are always bills to pay, so you need to keep track of your money well.
For business, you always need to know where you stand. You need to know at all times how much money you have in your account, how much money you need to check out, and how much you need to put back in. a cash management account helps you do all that.
What Does A Cash Management Account Cost?
To keep track of the in and out of your cash, you need a cash management account as it makes it much easier than other accounts.
It saves a lot of your time that you are better off spending somewhere else. These accounts do not even cost much, which is the best part about this.
Most of the time, the transactions made through a cash management account do not require face-to-face interactions. And, typically they do not cost you at all as non-financial institutions provide them. But, in some cases, there can be a small amount of monthly fee required.
What Is The Difference Between Cash Management Account and Online Checking Account?
Cash management accounts are a great alternative to checking accounts and saving accounts. But, there are a few differences between a cash management account and a checking account. Let us have a look.
When it comes to interest rates, a cash management account is always the best. Checking accounts have interest rates too, but they are not as good as the interest rates you get from a cash management account.
Even though a cash management account and a checking account are two different kinds of accounts, they provide the same services if you think about it. Both of them give you access to ATM cards, a checkbook, and mobile account management.
But, cash management accounts also serve as savings account that a checking account does not. Also, you need a second-chance checking account for bad credit.
A cash management account is usually linked to investment firms. So, they are also linked to the investment accounts that you may have. This saves time as well. In contrast, it is not a primary business for a checking account. So, they are not usually linked.
How to get an instant debit card online? It is easy with cash management accounts.
Most cash management accounts do not require any fees. On the other hand, checking accounts does require a monthly fee.
Are Cash Management Accounts Safe?
Non-financial institutions typically provide cash management accounts. These accounts have no reason to be not secure. Fraud detection and authenticated logins are used for these accounts. So. they are very safe and secure.
Sometimes, these accounts may have technical difficulties, and the customer may have to face technical problems. Then again, even major banks face all kinds of data breaches from time to time.
Financial products induce security weakness at times. Using unsafe Wi-Fi networks, phishing scams, and inattention while logging into accounts may create weakness.
Why You Should Get A Cash Management Account?
When you need to keep your money safe, you open a bank account. But, that is not always the only reason people open bank accounts. Interest rates, keeping track of the ins and outs of cash are other reasons for opening an account.
If you open up different accounts, you may face difficulty managing them all at once, and it takes a lot of time off your hands as well. These accounts are right for you if you want all your money in one place at all times. You can manage all your money from this one account.
If you are comfortable with online banking or banking with mobile apps, these accounts are perfect. You never have to see the face of a receptionist or anyone if you open this account.
How To Open A Cash Management Account For Business?
Opening a cash management account is very easy to do. If you want to keep all your money in the same place, this is the best way to go. Follow these easy steps to open an account.
Your first step would be to open an account with a mobile app. You can choose the best cash management account first and open an online account. So, get your account and routing number.
After you get your routing and account number, you can contact your payroll provider, and your paycheck or other payments will be deposited into your account automatically.
In most cases, with the snap of a photo, you can check deposits. Without using any slip, checks, or stamps, you can transfer your money.
With the online service, you can pay bills from anywhere you want. You can even use direct debit or check writing to transfer cash.
What Is The Best Cash Management Accounts for Business?
Earning money is hard work. No one wants to waste the money they spend so much time earring. That is why people use bank accounts. If you want all your money in the same place, you should be opening a cash management account.
There are so many accounts that you can choose from. Down below, we will discuss the best cash management accounts for businesses.
This cash management account earns you better than average interest while asking for no fees, which SoFi offers. There are more benefits to this cash management account.
Even though SoFi offers no free ATM networks, they will reimburse third-party ATM fees without charging anything themselves.
With monthly deposits of 500 dollars, you get 0,25 percent APY interest. For customers, there is a bonus of up to 100 dollars if they meet the criteria. With no overdraft fees, SoFi offers debit cards to customers, which allow them to make cash withdrawals.
This is another cash management account that offers fee-free services. Even though WealthFront has no branches, it shines in other areas. If you open an account here, you will get unlimited withdrawals and ACH transfers.
WealthFront offers an interest rate of 0.35 percent APY. This is great as it is better than most average interest rates. They have more than 19000 ATMs under them.
If you open an account with WealthFront, your debit cards will allow fee-free cash withdrawals and purchases. There is a special ‘send a check’ feature, which is completely free of charge. Also, this ‘autopilot’ investing and saving tool may be of help to you.
Cash management accounts are not accounts of banks. They are mostly non-financial service providers. Betterment is also not a bank. It helps customers to invest their money in the right business ventures.
Betterment will sweep the customers’ funds into their respective accounts at program banks. From there, the customers will benefit from FDIC insurance. There are two complementary accounts in Betterment.
The Betterment Cash Reserve will offer you an annual percentage yield and requires no fees or has any minimum balance requirements. You will get 0.40% APY with the Betterment Cash Reserve account.
The other account is Betterment Checking, which is an available debit card, and it reimburses ATM fees all over the world. There are no monthly fees required here as well.
04. Robinhood Cash Management
There is a Robinhood brokerage account called the Robinhood Cash Management. It offers an interest rate of a solid 0.30 percent APY on your money.
Any other cash management products are not bank accounts. So is the case with Robinhood Cash Management, even though these accounts’ features are similar to bank accounts, such as savings or checking accounts.
FDIC protection is given to you by Robinhood Cash Management by sweeping money to partner banks. That is how they extend the federal insurance that you get from banks. You even get the benefit of a debit card through this account.
05. Fidelity Cash Management
With the Fidelity Cash Management Account, which is basically a brokerage account, you will not benefit from the savings account feature. But, you will get the benefits of a checking account from this account.
You will be offered the FDIC insurance as Fidelity Cash Management sweeps money from partner banks. Most cash management accounts do this. So, Fidelity also sweeps the customers’ deposits into these partner banks, and then the deposits get the FDIC insurance by extension.
There are ATM fee reimbursements that work nationwide. These accounts are free. So, there is no monthly charge that you have to pay.
06. Personal Capital Cash
Features that you get from banks like the savings account and the checking accounts will be there on the Personal Cash account. The most awesome part is that it is completely free of charge. You do not need to pay any monthly charge to open this account.
Personal Capital Cash account is an automated investment management service, which is completely online-based. It offers you a 0.05 percent APY or annual percentage yield, which is almost the same as most banks offer. But, there is no fee with this account, and it has FDIC insurance.
07. Aspiration Spend and Save Account
Both the checking account and the savings account features are found in Aspiration Spend and Save Account. Aspiration offers you a 1.00 percent APY or annual percentage yield, which exceeds most average interests that most banks have to offer.
But, you have to deposit about 2000 dollars every month to get that interest. There are no fees required to open this account. It will offer you a hybrid account that has up-to-5 percent cash back on purchases.
When you are buying gas, you get an optional Planet Protection feature that offsets carbon outputs. You get free and unlimited ATM withdrawals at Allpoint ATMs. Furthermore, 10 percent of the earnings of Aspiration go to charity.
This is a San Francisco-based financial services company that helps you save money. It also helps you reduce all your spending, which is a must if you are starting up your business. There are some awesome features the mobile app for Empower presents you with that make managing your money all the easier.
One feature lets you set money aside automatically each week but only when you can afford to do so. If you set a goal, the AutoSave feature will save cash for you. Another budgeting feature that this accounting app offers is that it will set targets, and you will not overspend on anything with the help of this feature.
09. E*Trade Financial
This financial account will excel outside of its 0 dollar commission. It has excellent educational resources and even tools that build portfolios. You will get a large mutual fund selection as well with this account.
Among online brokers, E*Trade has been the most popular one. To appeal to the customers of the account, it has strong trading platforms. The tools that it provides you with are easy to use. There is a large investment selection to choose from.
It has even great customer support that you can trust. The mobile app is really advanced. You get access to extensive research as well. Also, you will have access to ETF trades.
When it comes to saving money, you can always do great with a little help. Cash management accounts help you a great deal with managing your money with just one account. You do not need to monitor multiple accounts at the same time anymore.
If you want to play safe and smart when it comes to your business, you should always keep in mind that you can open a cash management account. So, instead of wasting your time and money, open an account right now.