NationsBank Corp. is offering its first banking and brokerage combination account, Money Manager.
The Charlotte, N.C.-based banking company is joining the ranks of other big banks that offer all-in-one accounts to retail customers. NationsBank's hometown rival, First Union Corp., has been heavily promoting its so-called CAP account in many of its markets.
But Money Manager is not a knee-jerk reaction to NationsBank's banking competition, the product's manager said.
"We didn't roll this out to compete with anybody. Merrill Lynch has had a product like this for 20 years," said Dick Downan, an executive vice president in NationsBank's consumer banking department.
Merrill Lynch & Co. first combined basic financial services like checking with securities accounts back in 1977, when it launched its cash management account. Many banks held back from offering similar products because of regulatory restrictions and systems issues.
NationsBank started offering Money Manager accounts in early February in Middle Atlantic cities including Baltimore, Norfolk, Richmond, and Washington. It launched the accounts in Florida, North Carolina, and South Carolina in March.
The plan is to get them up and running in Georgia, Texas, and the Midwest by the end of the year.
NationsBank spent two years talking to clients about how to design the account, Mr. Downan said. In the next few months, he said, NationsBank will finish readying its systems to offer Money Manager in markets it entered by acquisition.
The banking-meets-brokerage accounts are akin to traditional cash management accounts for institutional customers in that they sweep deposits into overnight investments in money market mutual funds.
Money Manager requires a minimum balance of $10,000 with an annual service fee of $85 for accounts with less than $50,000. Securities transaction fees depend on whether customers opt for NationsBank's discount or full-service brokerage. Mr. Downan said giving customers those options distinguished the NationsBank account from similar products.
First Union and KeyCorp's all-in-one accounts access the OneSource mutual fund program of Charles Schwab & Co.
First Union's CAP, introduced in 1985 and heavily advertised last year, has $28.7 billion in 312,000 accounts.
NationsBank is advertising Money Manager in local newspapers and The Wall Street Journal, as well as on television and radio.
Mixing banking and investment products in a single product can make for some complications. For example, 60-second radio and television spots advertising Money Manager include 12 seconds of disclosure about insured investment products, Mr. Downan said.
