when individuals deposit money into their accounts it is typically placed into a money market fund that offers a greater return than a regular savings account the deposits of investors with accounts at banks insured by the federal deposit insurance company fdic are protected up to at least 250 000 per depositor however fdic insurance does not cover investment products that are not deposits such as mutual funds annuities and stocks and bonds 2
these types of accounts at banks have only been possible since the passage of the gramm leach bliley act in 1999 which replaced the glass steagall act the glass steagall act of 1933 passed during the great depression forced a separation between banking and investing services now they have only to maintain a chinese wall between divisions the added benefit to account holders whose assets are managed at banks is that the same institution can meet all of their banking and investing needs example of an asset management companyinvestment management and wealth management firm merrill previously known as merrill lynch offers a cash management account cma to fulfill the needs of clients who wish to pursue banking and investment options under one roof 3the account gives investors access to a personal financial advisor this advisor offers advice and a range of investment options that include initial public offerings ipo in which merrill may participate as well as foreign currency transactions interest rates for cash deposits are tiered deposit accounts can be linked so that all eligible funds are aggregated to receive the best possible rate securities held in the account fall under the protective umbrella of the securities investor protection corporation sipc sipc does not shield investor assets from inherent risk but instead protects them from the financial failure of the brokerage firm along with typical check writing services the account offers worldwide access to bank of america automated teller machines atm without transaction fees bill payment services fund transfers and wire transfers are available the mymerrill app allows users to access their accounts and perform several basic functions via a mobile device accounts with more than 250 000 in eligible assets sidestep the annual 125 fee and the 25 assessment applied to each sub account held 4