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What is a cash management account

A cash management account is usually linked to a person's shares, stocks and investment bonds. This gives the person the chance to purchase stocks and shares, as well as other commodities. Any money earned from the sale of these investments is left in the account, where interest is used paid at the current market value. The account holder can still use this account as a normal account and is allowed to write cheques against the balance of the account.

The only real disadvantage to a cash management account is you are usually required open the account with a large initial deposit, with the most common deposit amount being £25,000. There are some accounts that require holders to deposit a certain amount into the account each month, usually £1,000 however, the broker will accept the income from stocks and shares so you do not have to deposit on top of that income. If you are thinking of opening a cash management account you will be required to give your credit card details or apply for a credit card linked to the account. However, if you have the money to invest and are active in the investment industry then this type of account will be a real advantage to you.

Banif Bank offer a cash management account for businesses of any size. Their management account gives the business access to three different accounts, including current, overdraft and savings account. You do not have to pay interest on your overdraft facility and they offer a competitive savings interest rate of 1% AER.

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