Compare cash management accounts

How does a cash management account work?

A cash management account is essentially a savings account or bank account, although some financial institutions classify them as investment accounts. They're for individual investors, self-managed super funds, companies and trusts.

Some cash management accounts offer higher interest rates than standard bank accounts, 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.

What can you use a cash management account for?

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 a hub for your self managed super fund, where you make investments for the fund and receive income.

Our expert says

"One thing to be aware of is that cash management accounts typically don't come with debit card access. They're intended for holding your money between investment opportunities - not for day-to-day spending.

So if you'd prefer to be able to access your funds via a debit card then a standard bank account would probably suit you better - although these don't pay any interest."

Alison Banney

Editorial Manager, Money

How do I compare cash management accounts?

Interest rate. Some cash management accounts offer the same interest rate no matter how much your account balance is, while others offer tiered interest rates.

Access to funds. Check how you can access the money, for e.g.: does the account offer Internet banking, phone banking, cheque books, branch banking, and even BPAY?

Online trading. If you trade shares online, or if you plan to in the future, consider opening a cash management account that you can link to an online trading account.

Fees and charges. Cash management accounts don't usually attract ongoing account keeping or management fees. Some might not charge any transaction fees, and some others might offer a limited number of free transactions per month.

Benefits of a cash management account

• High interest rate. When compared to a standard bank account, many cash management accounts offer a better interest rate.
• Easy access to funds. You can access funds 24/7 via online banking, and also use your money to pay bills via BPAY.
• Ideal for SMSFs. A cash management account can simplify your tax returns, super fund accounting and long term record keeping, given that all related transactions appear on a single statement.
• Manage cashflow. It helps manage your investment cashflow by keeping your investment money seperate from your personal accounts.

Frequently asked questions

• What eligibility criteria do I have to meet to apply for a cash management account?

  You should meet the account's minimum age requirement and have a tax file number. You also generally need to be a resident of Australia.

• Can I apply for a cash management account online?

  Yes, many financial institutions let you apply online.

• Can I use a cash management account for direct debits and credits?

  Yes, and you can also set up recurring payments.

• Can you open a cash management account as a joint account?

  Yes, you can add someone else onto your cash management account (this is particularly handy for SMSFs).

• What are the downsides of a cash management account?

  Cash management accounts offer lower interest rates then most high interest savings accounts. They also don't usually offer debit card access.

• Whatt's the difference between a cash management account and a savings account?

  Cash management accounts don't have monthly conditions to meet to earn interest, while most high interest savings accounts do. A savings account is usually linked with a bank account from the same bank, allowing you to transfer money instantly for access via a debit card.

Written by

Sarah Megginson

Personal finance expert + media spokesperson

With over 20 years of experience in property, finance and investment journalism, Sarah is a trusted expert whose insights regularly appear across television, radio, and print media, including Sunrise, ABC News, and Yahoo! Finance. She has previously served as managing editor for Your Investment Property and Australian Broker, and her expert advice has been shared in the media over 3,500 times since 2023 alone. Sarah holds a Bachelor’s degree in Communications and a Tier 1 Generic Knowledge certification, which complies with ASIC standards. See full bio

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Co-written by

Richard Whitten

Senior Money Editor

Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

Richard's expertise

Richard has written 688 Finder guides across topics including:

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