Asset management account

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Asset management account

Account at a brokerage house, bank, or savings institution that integrates banking services and brokerage features.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Asset Management Account

An account at a bank or other financial institution that allows the account holder to place money for both banking and investment services. When money is placed into the account, it is automatically placed into a money market account, which carries a higher interest rate than normal checking or savings accounts. The account holder can then direct the money to various banking and investment services. Asset management accounts were allowed after the passage of the Gramm-Leach-Bliley Act, which allowed financial institutions to offer both banking and investment services for the first time since at least the Great Depression.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

asset management account

A comprehensive brokerage account that includes checking, a credit or debit card, margin loans, and the automatic sweep of cash balances into a money market fund. Examples of brokerage asset management accounts include Cash Management Account® by Merrill Lynch (the first firm to offer this type account), Financial Management Account® by Smith Barney, and Schwab One® by Charles Schwab. Features and fees vary by firm. Also called central assets account, sweep account.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Asset management account (AMA).

All-in-one asset management accounts provide the financial advantages of an investment account combined with the convenience of an interest-bearing checking account.

AMAs generally offer check-writing and ATM privileges, credit cards, direct deposit, and automatic transfer between accounts, as well as access to reduced-rate loans and other perks. There are usually annual fees and minimum account requirements.

AMAs are offered by many brokerage firms and mutual fund companies, and are also known as central asset accounts (CAAs) or cash management accounts (CMAs).

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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* Asset management accounts at 8.1 percent--up 0.9 percentage points.
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He has also been involved in negotiating asset management accounts with regional sovereign wealth funds.
Asset management accounts. If you deal regularly with a particular brokerage firm, consider setting up an AMA as a supplement to, or even a replacement for, a traditional bank account.
He had a brief stint with Bear Stearns as a marketing executive for new asset management accounts, before taking his current position with the Giuliani administration.
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Beyond the scheme of things, however, all asset management accounts vary widely, and any interested investor would be wise to window-shop different vehicles before committing his or her hard-earned savings.
Asset management accounts let clients write checks against their money-market deposits.
Other added features of asset management accounts include free traveler's checks and the use of account credit cards in automatic teller machines.
Asset management accounts bring order where once there was chaos, according to Thomas Littauer, president of Fidelity Preferred Services, a division of Boston-based Fidelity Investments.
Managing personal accounts has become even easier as sponsors of asset management accounts refine their programs.
If there is any real hard decision in regards to asset management accounts, it's where to establish them.

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