Asset Management Account

What is it? Also called a cash management account.An all-in-one account offered by banks and brokerages that allows customers to invest, write checks, pay bills, and earn an elevated interest rate on their cash. It was first started in the brokerage industry to lure people with fat bank accounts. Banks are striking back with their own versions.Typically, a minimum amount of cash and securities is required, sometimes as much as $25,000. Annual fees can reach $125 or so. These accounts are attractive because any cash that comes in from interest, dividends, or the sale of securities is swept into a money market account. Customers also often get free checking and access to preferred rates on loans. At the end of the month they receive a unified statement for all their accounts. Because of the fees, this kind of account best serves active traders.

Added By: Kayla

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