<PAGE> 1
CASH ACCOUNT TRUST
SUPPLEMENT TO PROSPECTUS
DATED AUGUST 1, 1996
Zurich Kemper Investments, Inc., the Fund's investment manager, is
gradually increasing the temporary expense limitations of the Government
Securities Portfolio and Tax-Exempt Portfolio to 1.00% and .95%, respectively.
Expenses are expected to increase to these levels by approximately June 1, 1997.
Therefore, the "Summary of Expense" table in the Prospectus is revised as
follows:
SUMMARY OF EXPENSES
SHAREHOLDER TRANSACTION EXPENSES(1).........................................NONE
ANNUAL FUND OPERATING EXPENSES
(AFTER FEE WAIVER AND EXPENSE ABSORPTION) (AS A PERCENTAGE OF AVERAGE NET
ASSETS)
<TABLE>
<CAPTION>
MONEY GOVERNMENT
MARKET SECURITIES TAX-EXEMPT
PORTFOLIO PORTFOLIO PORTFOLIO
--------- ---------- ----------
<S> <C> <C> <C>
Management Fees............................................. .17% .18% .18%
12b-1 Fees(2)............................................... .60% .60% .50%
Other Expenses.............................................. .23% .22% .27%
----- ----- ----
Total Operating Expenses.................................... 1.00% 1.00% .95%
===== ===== ====
</TABLE>
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(1) Investment dealers and other firms may independently charge shareholders
additional fees; please see their materials for details.
(2) As a result of the accrual of 12b-1 fees, long-term shareholders may pay
more than the economic equivalent of the maximum front-end sales charges
permitted by the National Association of Securities Dealers.
<TABLE>
<CAPTION>
PORTFOLIO 1 YEAR 3 YEARS 5 YEARS 10 YEARS
EXAMPLE --------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C>
You would pay the following expenses Money Market $10 $32 $55 $122
on a $1,000 investment, assuming Government Securities $10 $32 $55 $122
(1) 5% annual return and Tax-Exempt $10 $30 $53 $117
(2) redemption at the end of each time
period:
</TABLE>
CAT-1A(4/97)
