Which account is referred to as cash account

Which account is referred to as cash account

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From the context of private finance or banking, a "cash account" usually refers to a primary checking or personal savings account where you deposit and withdraw money in the shape of physical currency (hard cash) or electronic transfers. Such a account is used for day-to-day transactions, like spending expenses, building buys, or preserving cash.

While in the context of investing, as outlined earlier, a "money account" refers into a brokerage account where by transactions are settled with a cash foundation, FINRA rules meaning it is possible to only trade with the cash you've deposited in to the account. This distinguishes it from a margin account, in which you can borrow cash through the broker to generate trades.