TD Ameritrade Cash Management Account Review – Forbes Advisor

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TD Ameritrade is a brokerage firm offering online and in-person investment services. In October 2020, The Charles Schwab Corporation finalized the acquisition of TD Ameritrade Holding Corporation. At the time of this writing, the companies are still operating as independent entities.

TD Ameritrade offers cash management accounts as a part of its suite of services for its brokerage customers. Cash management accounts at TD Ameritrade are not separate products and require a brokerage account to access.

TD Ameritrade offers two cash accounts: Transactional Cash and Investment Cash. This review provides an overview of TD Ameritrade’s Transactional Cash account, its features and benefits, and how it compares to other cash management accounts. Account details and annual percentage yields (APYs) are accurate as of Nov. 12, 2021.

Account Basics

TD Ameritrade Transactional Cash Account

As mentioned above, TD Ameritrade’s cash management services are an extension of its brokerage products and are available for all of its brokerage customers. Once a brokerage customer, you must opt in to access the Transactional Cash account.

There is no minimum deposit requirement and no monthly maintenance fees for the Transactional Cash account. The account also features several valuable benefits, including:

  • A complimentary debit card issued by TD Bank USA, N.A.
  • Unlimited check writing
  • Free standard checks
  • Online bill pay
  • Mobile check deposit on your smartphone or tablet

One of this account’s standout features is unlimited reimbursement for ATM fees charged by ATM operators. This means you can withdraw cash at any ATM in the U.S. and get reimbursed for any ATM fees. There’s no need to stick to a specific ATM network. You can also connect your debit card to Apple Pay for more payment options.

One of the perks of keeping cash in a TD Ameritrade cash management account is that it allows you to move money between TD Ameritrade accounts easily. If you want to move money over to your brokerage account to buy stock, you can do that quickly and easily in one spot.

TD Ameritrade cash accounts are interest-bearing accounts. However, don’t expect to earn too much interest. Currently, the interest rate on all balance tiers is just 0.01% APY. A TD Ameritrade cash management account is not the place to park your money if you want to maximize your savings. You may want to consider, instead, keeping your money at one of the best online banks.

As with most cash management accounts, you can protect your money in a TD Ameritrade cash account beyond standard FDIC insurance limits through the use of a sweep program. After you deposit money in your cash account, TD Ameritrade utilizes a sweep program to move your deposits to partner banks, with each bank offering the standard $250,000 FDIC coverage per depositor. The maximum FDIC coverage you can receive is $500,000 for individual accounts and $1 million for joint accounts.

Other TD Ameritrade Accounts and Services

As a brokerage firm, TD Ameritrade offers individual and joint brokerage accounts along with retirement accounts. TD Ameritrade also offers a variety of investment products and services, including:

  • Stocks
  • Options
  • ETFs
  • Mutual funds
  • Futures
  • Forex
  • Margins
  • Cryptocurrency
  • Bonds & fixed-income investments
  • Annuities
  • IPOs
  • Dividend reinvestment
  • Collateral lending
  • Managed portfolios

Read our in-depth TD Ameritrade Review for details on investing and retirement accounts through the robo-advisor.

Access on the Go

TD Ameritrade accounts are accessible online through TD Ameritrade’s website or its mobile app. Customers can access cash management tools, deposit checks and manage investment and retirement accounts through its mobile app. TD Ameritrade’s app is available for iOS (4.5 stars out of 5 on the App Store) and Android (3.3 stars out of 5 on Google Play).

For in-person support, TD Ameritrade also operates more than 175 physical branches across the U.S. You can also receive help over the phone through the following numbers:

  • New accounts: 800-454-9272
  • Existing clients: 800-669-3900

Regular support, and account service and support,  phone features are available 24/7. Technical support is available Monday through Friday from 7 a.m. to 6 p.m. ET.

You can also send messages and chat via social media through Facebook Messenger and Twitter. There’s also an option to receive support on your mobile device by texting messages to 898832.

Pros

  •   No monthly maintenance fee
  •   Unlimited ATM fee reimbursements in the U.S.
  •   Increased FDIC insurance coverage

Cons

  •  Not available without opening a brokerage account
  •  Low interest rate
  •  FDIC insurance coverage is lower than other cash management accounts

How TD Ameritrade Stacks Up

TD Ameritrade’s cash management services are an extension of its brokerage accounts. That’s not always the case with other top cash management accounts, many of which offer separate cash accounts. If you’re opening a cash management account through a brokerage firm, you may also want to use its brokerage services, but it’s not a given.

Either way, TD Ameritrade offers enough value in its cash management services to at least give it a look. The account comes with plenty of perks to make it a viable alternative to a traditional bank account. That said, the interest rate is similar to what you may find at a brick-and-mortar national bank. You could maximize your savings better by opening a high-yield savings account elsewhere. If you’re already a TD Ameritrade customer, though, it’s easy enough to use the broker’s cash management options—you simply need to opt in.

Frequently Asked Questions (FAQs)

Is TD Ameritrade FDIC insured?

Through a deposit sweep program, funds deposited into TD Ameritrade cash accounts are FDIC insured up to $500,000 maximum—up to $250,000 per partner bank, including any existing deposits at those banks.

What is a cash account on TD Ameritrade?

As part of its brokerage accounts, TD Ameritrade brokerage customers can opt in to cash management services, which operate similarly to checking and savings accounts. Cash accounts are interest-bearing and feature benefits like check-writing privileges, online bill pay, mobile check deposit and more.

How does a cash account work?

A cash management account is an account available through brokerage firms and other non-bank financial institutions that acts similar to a bank account. Cash accounts often include similar features to checking and savings accounts, like access to a debit card and a checkbook and interest earnings.

How do I open a cash account with TD Ameritrade?

To access TD Ameritrade cash management services, you must first open a TD Ameritrade individual, joint or retirement brokerage account. You’ll be asked to provide personal information to verify your identity during the application process.

Is a brokerage account required to open a TD Ameritrade cash account?

Yes, TD Ameritrade’s cash management services are a feature of its brokerage accounts and aren’t available without an account.

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