Asset management account


Also found in: Dictionary, Medical, Encyclopedia.

Asset management account

Account at a brokerage house, bank, or savings institution that integrates banking services and brokerage features.

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.

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.

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).

References in periodicals archive ?
For many investors, the most attractive feature of an asset management account is the "sweep." This is where all accumulated interest, dividends or proceeds from the sales of securities are swept into the selected money-market fund.
The real value of an asset management account can easily be seen at the end of the month with the issuance of the account statement.
Account owners can also borrow against cash and securities in an asset management account. So, if you had $50,000 worth of General Motors (GM) stock and $5,000 in money-market funds, but you've decided to buy a $22,000 Jeep Cherokee, the check would clear and a debit would be created in the account against the value of the GM stock.
Mutual fund asset management accounts, such as those offered by Merrill Lynch or Charles Schwab, enable households readily to transfer assets from bond and stock funds to checkable money market funds when needed.

Full browser ?