October 2016 – Cash Management Features

Retail brokerage firms often offer modified investment accounts or additional features to accommodate what are traditionally banking services, like check-writing and ATM withdrawals. Through these accounts and services—what we call “bankerage” cash management products—clients have the combined convenience of standard brokerage capabilities with services that are otherwise offered only through deposit accounts.

All 18 firms in the Broker Monitor coverage group offer at least some cash management services. Basic products and features are fairly common; all firms except optionsXpress offer check-writing and the option to add a debit card to a brokerage account. Other common cash management features include online bill pay, offered by 89% of brokerages, and online transfers, which are offered by every firm. Additionally, 83% of firms allow for recurring withdrawals, helping account holders take charge of their accounts by setting cash flows for coming weeks and months.