Cash management account.

In plain English

A cash management account, or CMA, is an account offered by a brokerage or fintech firm that blends features of checking and savings into one place. It usually comes with a debit card, bill pay, and the ability to hold uninvested cash alongside your investments. Many CMAs sweep your balance into a network of FDIC-insured partner banks, which can push your total coverage above the single-bank limit because the money is spread across several banks. Like a neobank, a CMA is typically run by a firm that is not itself a bank, so the deposit insurance comes from the partner banks behind it.

01Why it matters

A cash management account can keep your spending cash and your investments under one roof while spreading deposits across banks for more FDIC coverage, which is useful if you hold a large cash cushion.

02The math, step by step

You park 400,000 dollars in a cash management account that sweeps deposits across several partner banks. Because FDIC insurance is 250,000 dollars per depositor, per insured bank, per ownership category, spreading the cash across enough partner banks can keep the full balance insured, where a single bank account would leave part of it uninsured.

03What this is NOT

04Receipts

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