If you’ve reached a stage where a simple transaction or savings account is no longer the best way to manage your money, or if you’re want to simplify managing your savings and investments, it could be worth opening a cash management account. Most prominent financial institutions in Australia offer cash management accounts, but features can vary across institutions.
A cash management account is essentially a savings account or bank account, although some financial institutions classify them as investment accounts. These accounts tend to offer higher interest than standard bank accounts which usually offer no interest, but less interest than a high interest savings account.
As an account holder, you'll have easy access to funds in your account, and some accounts can be linked to online trading platforms so you can easily manage your investments.
Some financial institutions allow customers to open cash management accounts using Self Managed Super Funds (SMSFs), and trusts can open such accounts as well. You may need to meet certain requirements in order to open an account, such as a minimum opening balance and ongoing balance requirements.
A cash management account is ideal is you want to keep your investment cash flow separate from your personal banking. For example, you can use the account to receive your rental income from an investment property or dividends from shares. It can also be used as a hub for your self managed super fund where you make investments for the fund and receive income for the fund.
While some of the features are essentially the same, some others are not, so pay attention to the following if you plan to open a cash management account.
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I will be receiving proceeds of sale of my home of about $1900000 and wish to invest it for about 2 months when I will be paying most of it as balance owing on a retirement unit I am buying. I want to maximise my interest for this period and seek advice.
Hi Mary,
Thanks for getting in touch with Finder.
You might want to consider storing your money in a high-interest savings account.
On that page, you will see a table that allows you to conveniently compare high-interest savings accounts. Click on the “Go to site” button when you finally found a product that fits your needs and preference. Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.
I hope this helps. Should you have further questions, please don’t hesitate to reach out again.
Have a wonderful day!
Cheers,
Joshua
Please advise which Bank will open a Cash Management account with cheque book facility and pay interest on total balance on my self managed super fund account
Hi Alexander,
Thank you for your inquiry.
While we cannot recommend what is best for you, we can offer you a general information. As per checking you are already on the right page where you can compare the banks that offers Cash Management account. You can follow the process provided below to optimize your comparison procedure.
I hope this information has helped.
Cheers,
Harold