What is an Asset Management Account

An asset management account is a type of account that combines some of the features of a traditional checking account with an investment account. This type of account is becoming more common with banking institutions as consumers wish to streamline their financial lives and save time. 

Asset Management Account

With this type of account, an individual will deposit money into it as if it were a regular bank account. Then, the money from the bank account will be swept into a money market account. While the money is not being used, it is free to earn additional interest in the money market account. The money stays in the money market accounts unless the individual uses it by writing a check or using a debit card. By using this arrangement, the individual can access the money as often as they would like as if they were using a traditional checking account. The big differences that they can earn the higher interest rates that come with having money in a money market account.

Additional Investment Opportunities

With this type of account, an individual can also pursue other investment opportunities. For example, when the money is in the money market account, they can often choose to put it into other types of investments like mutual funds or CDs. The account can also be set up to put a certain amount of money aside every month in order to purchase shares of the fund. This allows the individual to utilize a dollar cost averaging approach to their investments. 


An asset management account can provide account holders with a number of advantages. Perhaps the biggest advantage is that you can combine your regular bank account with an investment account. You will get a statement at the end of the month that has all of your banking transactions as well as the amount of interest that you have earned from investments. This can save you significant amount of time because you do not have to look at multiple account statements. This type of account allows you to buy stocks, bonds, mutual funds, and other investments while having access to unlimited check writing privileges. You can even take cash out of an ATM if you need to.


One of the big disadvantages of this type of account is that you have to have a minimum amount of money to open it. In many cases, the minimum deposit is larger than most people have to deposit. For example, you might have to deposit $15,000 in order to gain access to this account.

Another potential disadvantage of this type of account is that you may not get all of the services that come with a traditional financial broker. You may not have access to the large amounts of research that come with other financial brokers and they may not provide you with as much investment guidance. If you are the type of investor the likes to handle everything themselves, then this might be a good solution for you.

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