Cash accounts are often used by individuals for personal financial management and by businesses for handling daily expenses. They are typically low-interest accounts with easy access to funds. While some financial institutions offer cash accounts with limited interest rates, the primary appeal of such accounts is their liquidity and ease of use. In the digital age, the term is also expanding to include virtual cash accounts associated with mobile wallets and online banking services.
Though some people rely solely on cash accounts, they are usually considered less advantageous for long-term savings. For people seeking higher returns, savings accounts or investment accounts may be preferred. The rise of digital payments and cryptocurrency also challenges the role of traditional cash accounts in modern finance.