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Everything you need to know about the Cash App savings account
Cash App, a digital wallet and peer-to-peer payment app, offers an online high-yield savings account option that’s integrated into its app. Whether you’re growing a rainy day fund or have a targeted goal you’re saving toward, the Cash App savings account offers a competitive interest rate — up to 10x higher than the current national average — that can help you reach your goal faster.
However, like all financial products, the Cash App savings account has advantages and drawbacks. Here’s what to know before opening an account.
Cash App savings account details
Cash App is a financial technology company, not an actual bank, so it partnered with Wells Fargo Bank to offer its savings account product. Under this partnership, Wells Fargo is the behind-the-scenes entity that holds your funds and fulfills the competitive Cash App savings interest rate on your deposits.
Account holders earn a minimum of 1.50% APY on balances, or 4.50% APY if they have the Cash App card and receive at least $300 per month in direct deposits.
Additionally, if you are a Cash App debit card holder, up to $250,000 of your cash and savings account balances are FDIC-insured through Wells Fargo. If you don't have the debit card, however, none of your money is protected. Also, note that FDIC insurance doesn't cover you if Cash App goes out of business.
If you’re thinking about opening a Cash App savings account, here are a few more details you should know:
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APY: 1.5% to 4.5%
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Minimum opening deposit: $1
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Minimum balance required: None
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Monthly maintenance fee: $0
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Transfer fees: $0
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Out-of-network ATM fee: $2.50 per withdrawal
Note that the money you transfer into savings is separate from your Cash balance. Sending money to friends, spending with your Cash App Card, or buying stocks or bitcoin uses funds from your Cash balance.
You can transfer money between your Cash balance and savings instantly and at any time. Plus, unlike many savings accounts, there is no limit on the number of transfers you can make in a month.
Read more: What is Cash App, and is it safe to use?
How to set up a Cash App savings account
If you’re interested in opening a Cash App savings account, here are the general steps to follow:
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Download the Cash App. Cash App savings is integrated into the broader Cash App. Download the Cash App by scanning the QR code on the website with your mobile device’s camera, or by visiting your device’s app store. Then, create a free general account through your device.
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Order a Cash App Card. The card acts as a debit card for purchases and ATM access and is required to activate a Cash App savings account. Request a Cash App Card through the app and follow the prompts, then select your card design and answer a few questions. Upon completion, you’ll receive an electronic Cash App Card that you can add to your digital wallet, as well as a physical card mailed to your address.
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Add funds to your savings account. You can transfer your first deposit into your savings fund directly from your Cash App balance, or from a linked third-party bank account or credit card. A minimum required opening deposit of $1 will get you started earning interest.
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Set up direct deposit. If you’d like to earn the highest Cash App savings interest rate of 4.5% APY, enroll in direct deposit for a minimum amount of $300 per month.
Read more: Is it safe to store money in apps like Venmo, PayPal, and Cash App?
Is the Cash App savings account worth it?
If your goal is to quickly and easily establish a savings fund that helps you earn significantly higher yields than the national average rate, then Cash App savings might be a fit. As of October 2024, the average savings account interest rate is just 0.45% APY, according to the FDIC. This makes the Cash App savings account rate highly competitive.
Practically non-existent fees — aside from a $2.50 fee for out-of-network ATM withdrawals — are also a plus. Additionally, convenient features, such as the ability to set specific savings goals and round up debit Cash App Card purchases into your savings balance, are easy to do in the app.
The biggest roadblock for some may be the direct deposit requirement to qualify for 4.5% APY. If you aren’t able to direct deposit at least $300 of your monthly income to your savings account, you’ll earn a reduced 1.5% APY on your deposits. It’s still not a terrible rate, but it’s a far cry from what you’ll find among the best high-yield savings accounts today.
See our picks for the 10 best high-yield savings accounts>>
Alternatives to the Cash App savings account
Before opening a Cash App savings account, shop around for other high-yield savings options to find a savings solution with a competitive interest rate and the features you need. Below are a handful of alternatives to help you along your search.
SoFi High-Yield Savings Account (up to 4.30% APY)
Opening a SoFi High-Yield Savings Account unlocks access to various benefits, including a competitive APY. It’s important to note, however, that SoFi doesn’t offer a standalone savings account; when you sign up, you’re automatically enrolled in a combination savings and interest-bearing SoFi checking account.
In order to earn SoFi’s highest savings account rate of 4.30% APY, you must enroll in direct deposit. There’s no minimum direct deposit amount required to earn its highest rate. You can also earn 4.30% APY with a minimum $5,000 deposit every 30 days if you don’t want to set up direct deposit.
There are no fees to maintain a SoFi High-Yield Savings Account, and no minimum balance is required. Savers can also access convenient features, such as savings “vaults” that help you bucket your savings for specific goals, ATM access, career coaching and financial advising, no-cost peer-to-peer payments, and more.
American Express High-Yield Savings Account (4.00% APY)
Currently, American Express High-Yield Savings Account members can earn 4.00% APY on their deposits, which compounds daily. There is also no minimum deposit or minimum balance requirement to open an account or avoid fees.
Like the app-based experience that the Cash App savings account offers, you can easily manage your Amex savings account through the bank’s app. You can also review your account activity by logging in to your American Express online banking platform.
This account doesn’t come with an ATM card, but deposits and withdrawals can be made via electronic transfers through another American Express deposit account or linked bank account. Amex members can also deposit physical checks using the mobile check deposit feature through the app.
Capital One 360 Performance Savings (4.00% APY)
The Capital One 360 Performance Savings account doesn’t impose a minimum opening deposit requirement. Additionally, there are no hoops to jump through to earn its highest savings rate. Regardless of your savings account balance, you’ll earn 4.00% APY. Like the Cash App savings account, the Capital One 360 Performance Savings account doesn’t charge monthly maintenance fees.
Additionally, Capital One savings customers have access to useful features such as automatic savings transfers and mobile check deposit
CIT Bank Platinum Savings (up to 4.70% APY)
If you’re looking for a higher interest rate than what the Cash App savings account offers, CIT Bank’s Platinum Savings account might be a fit. Customers can earn up to 4.70% APY. However, this rate only applies to balances of at least $5,000. Balances less than $5,000 earn 0.25% APY.
This can be a great savings account alternative for those with a sizable savings balance they don’t need access to anytime soon. Another consideration is that the Platinum Savings account requires an opening deposit of at least $100.
Read more: What to do if you sent money to the wrong person on Cash App, Zelle, or Venmo
