Standard checking accounts do not pay interest.
A master account is most commonly an account created by a brokerage firm to manage its own investments. The term can also be used to refer to a brokerage account managed at the company’s headquarters by a senior executive, or in non-financial markets to refer to the way an account is managed. A brokerage is a company that acts as an intermediary between buyers and sellers. In finance, this often involves buying and selling securities on behalf of a client. In most cases, a brokerage simply follows the client’s instructions rather than advising or deciding how to invest their money.
A brokerage firm may decide to invest its own profits in the financial market. When this happens, it often seems silly to go to another broker and pay those fees. Instead, the company will use its own people and technology to buy and sell securities on its own behalf. For administrative purposes, these transactions will be made in a separate account, known as a house account.
In a broader context, a main account can exist in any industry with sales representatives and customers. Used in this way, the term indicates that an account is considered important enough to be managed by the head office management team, not the sales representative. This will often be the case with former clients or those who are personally known to the management team. Sales reps often dislike personal accounts because they don’t earn commissions on them.
It is also possible that this type of startup account exists at a brokerage house. In this scenario, the distinction is not between management and the sales rep, because a broker’s sales rep rarely gets involved after landing a customer. Rather, the distinction is between a regular account, where transactions may be carried out by relatively junior employees at a branch, and a proprietary account, which is maintained at the main office and is usually overseen by senior employees or even a branch executive. business.
Some banks also use the term home account to denote a money market account created specifically for homeowners to use for household expenses. The idea is to be able to earn interest and, at the same time, make enough withdrawals to pay the household bills. This is useful in countries where standard checking accounts do not pay interest. Using the term insider account in this way is often a purely marketing activity without any legal meaning.