How does a cash balance influence the frequency of account statements sent to customers?

The frequency of account statements sent to customers is primarily determined by the activity within the account rather than the cash balance itself. When an account is actively traded, generating transactions such as purchases, sales, and contributions, firms typically send out statements more regularly to keep customers informed of their investment positions and any changes in value. Conversely, if an account experiences little to no activity, there may be less need for frequent updates, meaning that mailed or electronic statements may not be sent as often.

This approach allows firms to focus on providing relevant information to customers who may need updates more frequently due to their investment activities, rather than altering the frequency solely based on the amounts held in cash balance. Thus, while cash balances can reflect the potential for investment gains or losses, the driving factor for statement frequency is more closely linked to the level of account activity.