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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 looking for a way to simplify managing your savings and investments, it could be time to consider opening a cash management account. Most prominent financial institutions in Australia offer cash management accounts, but features can vary across institutions.
max rate
standard variable rate
This account is for SMSF trustees to access their SMSF cash balance, to make payments and investments, and to receive income to the one account.
A cash management account is essentially a savings account, although some financial institutions classify them as investment accounts. Such an account tends to offer higher interest than other savings accounts offered by any given financial institution.
As an account holder you can expect easy access to funds in your account. Some such accounts come linked to online trading platforms so you don’t have to waste precious time when managing 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.
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.
Start by finding out if the Australian Government guarantee that offers protection to aggregated deposits up to $250,000 applies to the financial institution you wish to deal with, because if it does not you might have to fend for yourself in the case of any eventuality.
If your account comes with a linked debit card you might be able to use it overseas. In such a scenario make sure you find out about overseas ATM fees and currency conversion fees at the onset, because these can be rather high. Your financial institution might impose a fee if your balance falls below the ongoing minimum balance requirement, so this aspect requires your attention as well.
The following table shows how much interest is earned with an initial deposit of $5000 and monthly deposits of $1000 over a 12-month period.
| Account | Maximum variable rate p.a. | Interest earned over 12 months |
|---|---|---|
| AMP Cash Manager | 1.00% p.a. | $158.36 |
| Macquarie Bank Cash Management Account | 1.00% p.a. | $147.75 |
| Bank of Queensland Cash Management Account | 1.00% p.a. | $153.06 |
| NAB Cash Manager | 1.00% p.a. | $105.38 |
| St.George Investment Cash Account | 1.00% p.a. Ongoing, conditions apply | $26.27 |
You should meet the account’s minimum age requirement, which can be 16 years or 18 years. You should also be a resident of Australia.
Yes, many financial institutions give you the ability to apply online. As a new customer, you would have to go through a legally required identity verification process.
This depends on the account you choose, but know that this is possible. You can also use some such accounts to set up recurring payments.
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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. We have a page that you might want to check.
On that page, you will see a table that allows you to conveniently compare high interest savings accounts. Click on the “Go to site” green button when you finally found a product that fits your needs and preference.
I hope this helps. Should you have further questions, please don’t hesitate to reach us 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