Stock Market

In response to the stock market crash of 1929, Congress passed the Glass-Steagall Act. This legislation required a separation between brokerage services and commercial banks. For nearly seven decades, this restriction remained in place until, in 1999, then-President William Jefferson Clinton signed the Gramm-Leach-Bliley Act, which permits the creation of "financial services" firms. Endowed with the powers to engage in various banking, brokerage, and insurance activities, these firms created asset management accounts in order to attract customers.

TIP: If you want to deal with a single financial institution only for all of your banking and brokerage needs, an asset management account may be the ideal solution.

Here's how they work. When you make a deposit, the proceeds are automatically swept into an interest-earning money market fund. You can write a check or use your debit card to automatically access the cash, just like a regular bank account. You can also go online or call your bank and purchase stocks, bonds, mutual funds, real estate investment trusts, and most other investments. At the end of the month, you will receive a single, consolidated statement detailing all of your transactions, both banking and brokerage.

There are a few downsides. Most asset management accounts have higher