Cash Management Account
A cash management account (CMA) is a brokerage product designed to function like a bank account. Wealthfront, Betterment, Fidelity, Schwab, and several other brokerages offer them. The brokerage itself is not a bank, but it has agreements with a network of partner banks; cash you deposit is automatically swept into one or more of those partner banks. Because each partner bank provides its own $250,000 of FDIC coverage, total insured coverage at a CMA can scale well beyond what a single bank offers — Wealthfront, for example, advertises up to roughly $8 million of FDIC coverage as of 2026 [verify with current Wealthfront partner bank list]. CMAs typically offer bill pay, check writing, debit card access, and direct integration with the brokerage's investment account.
Current US cash management account rates
Typical range across leading online cash management accounts. Rates change frequently — verify the current rate at the institution before opening an account.
See top banks →Current rates at these providers may fall outside the range shown above — verify at the institution.
- · Up to $8M FDIC via partners
- · Free instant transfers
- · No monthly fee
These are widely-recognized providers offering cash management accounts. APYCalculator does not earn commissions on links from this site and is not affiliated with any of these institutions.
Three real reasons to use a CMA over an HYSA.
1. FDIC coverage above $250,000. This is the cleanest case. If your emergency fund or short-term savings exceeds $250,000 and you don't want to manage accounts at four or five separate banks, a CMA gives you a single account with multi-million-dollar coverage. The brokerage handles the partner-bank distribution behind the scenes.
2. Brokerage integration. If your investments are at Fidelity or Schwab, holding cash in the same firm's CMA simplifies money movement. Cash can be deployed into investments instantly, dividend distributions land in the same account, and there's only one log-in to manage.
3. Bill pay and checking integration. CMAs typically combine the high-yield characteristics of an HYSA with the transactional features of a checking account, giving you a single account for both. If you currently maintain a separate checking account at a brick-and-mortar bank purely for bill pay and direct deposits, a CMA can replace it.
Watch-outs.
Rates vary widely. Fidelity's CMA pays a low headline yield (typically near checking-account rates) but reimburses ATM fees globally. Wealthfront and Betterment typically pay yields comparable to leading HYSAs. Read the current published rate, not the historical one.
Partner-bank overlap reduces effective coverage. Your $250,000-per-bank coverage assumes you don't already hold accounts at the partner banks. If your CMA sweeps to Bank A and you also have a $200,000 deposit directly at Bank A, you've used $200,000 of your $250,000 limit at that bank — only $50,000 of new CMA cash there is insured. Most CMAs publish their partner-bank list; you can opt out of specific banks if you have direct deposits there.
Brokerage failure is a separate risk. The cash itself is FDIC-insured at the partner bank, not at the brokerage. If the brokerage fails, SIPC coverage protects securities and up to $250,000 in cash held at the brokerage; cash already swept to FDIC partner banks is protected by FDIC insurance separately. The two coverages stack, but the mechanics matter — read the brokerage's customer agreement.