When you hear Cash Management Account, a hybrid account that blends checking, savings, and investing features under one roof. Also known as CMA, it lets you move money between spending, saving, and investing without switching platforms. But here’s the real question: CMA safety isn’t guaranteed just because it looks like a bank account. Many people assume their money is FDIC-insured like a savings account—but that’s not always true. The safety of your CMA depends on how it’s structured, which financial firm runs it, and what kind of protections are actually in place.
Most CMAs are offered by brokerages like Fidelity, Charles Schwab, or SoFi, and they often hold your cash in sweep accounts that get moved into FDIC-insured bank deposits. That means your cash might be covered up to $250,000 per bank, but if the brokerage uses multiple banks to spread the cash, you could be covered across all of them—up to $1.5 million or more. But if your CMA holds money in money market funds instead, that’s a different story. Those aren’t FDIC-insured at all—they’re protected by SEC rules and may carry SIPC coverage, which protects against broker failure, not bank runs or inflation. That’s why knowing whether your CMA is a deposit account or a fund makes all the difference. You also need to check if the provider offers excess SIPC coverage beyond the standard $500,000 limit, which some do for securities held within the account.
Then there’s the risk of platform failure. If the brokerage shuts down, your cash and investments should still be safe thanks to SIPC, but getting access to your money could take days or weeks. That’s why some investors prefer CMAs tied to banks with strong balance sheets, or those that offer pass-through FDIC insurance with real-time visibility into where their cash sits. And don’t forget cybersecurity—CMAs are digital by design, so two-factor authentication, biometric logins, and account alerts aren’t optional. The best CMAs today combine strong insurance, transparent custody practices, and simple tools to track your protection level in real time.
Below, you’ll find real breakdowns of how different platforms handle CMA safety, what fees hide behind the "no cost" label, and how to spot the ones that truly put your money first—not their profits.
Cash management accounts at brokers offer up to 4.8% APY on idle cash with FDIC insurance - far better than traditional savings accounts. Learn how they work, who they're best for, and how to stay safe while maximizing yield.
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