Cash App does not offer a traditional savings account, but it does have a savings feature that holds money separately from your spending balance

Cash App's savings feature is a separate bucket within the app where you can set aside money and earn a small amount of interest. It is not a bank account—Cash App itself is not a bank. The money you put into savings stays with Cash App's partner bank, Lincoln Savings Bank, which is FDIC-insured up to $250,000. You can move money between your spending balance and savings balance instantly, and you can withdraw to a linked bank account or debit card whenever you want.

The interest rate on Cash App savings changes and is not may provide. As of late 2024, the rate has been competitive with high-yield savings accounts at online banks, but Cash App does not lock you into a rate. You earn interest daily on whatever balance you hold in savings, and it compounds.

If you want a true savings account with a bank—one with a routing number, account statements, and the full protections of a bank account—you will need to open an account at a bank or credit union instead. Cash App savings is useful for short-term money you want to keep separate and earn a return on, but it is not a replacement for a dedicated savings account.

Key Takeaways

  • Cash App's savings feature lets you earn interest on money you set aside, but it is not a bank account and does not come with a routing number or account statements.
  • Money in Cash App savings is held at Lincoln Savings Bank and is FDIC-insured up to $250,000, the same protection as a bank account.
  • You can move money between your spending balance and savings instantly, and withdraw to a linked bank account or debit card at any time.
  • The interest rate on Cash App savings is not fixed and changes based on market conditions, so it is not may provide to stay the same.
  • If you need a traditional savings account for direct deposit, bill pay, or other banking services, you will need to open an account at a bank or credit union.

How to set up and use Cash App savings

To use Cash App savings, open the app and tap the Money Market icon (it looks like a dollar sign in a circle). Tap "get your free guide" and follow the prompts. You will need to link a debit card or bank account to fund your savings, though you can also transfer money from your Cash App spending balance.

Once savings is active, you can move money in or out at any time. There are no minimum balance requirements, no monthly fees, and no withdrawal limits. The interest you earn is automatically added to your savings balance daily. You do not have to do anything to earn it—just hold the money in savings.

Cash App sends you a 1099-INT form at tax time if you earn more than $10 in interest during the year. You will owe income tax on that interest, just as you would with any savings account.

When Cash App savings makes sense and when it does not

Cash App savings works well if you want to earn interest on money you are already holding in the app—for example, if you receive paychecks via Cash App or regularly send and receive money through the platform. It is also useful for short-term savings goals where you might need access to the money within weeks or months.

Cash App savings does not work well if you need a full banking relationship. You cannot set up direct deposit to a Cash App savings account, pay bills from it, or get a debit card linked to it. If your employer or a government agency needs a routing number and account number to deposit money, Cash App savings will not work.

Cash App savings also does not work if you want a may provide interest rate. The rate can drop at any time, and Cash App does not promise to maintain it. If rate stability matters to you, a high-yield savings account at an online bank like Marcus, Ally, or American Express Personal Savings offers a fixed rate that only changes when the bank decides to change it for all customers.

FDIC insurance and what happens if Cash App fails

Money in Cash App savings is held at Lincoln Savings Bank, which is FDIC-insured. This means your money is protected up to $250,000 if the bank fails. The FDIC (Federal Deposit Insurance Corporation) is a government agency that guarantees deposits at member banks.

Cash App itself is not a bank and does not hold your money directly. Square Financial Services, which operates Cash App, is a financial services company. If Square goes out of business, your money does not disappear—it remains at Lincoln Savings Bank and is still FDIC-insured. The account would be transferred to another bank or you would be able to withdraw it.

The $250,000 FDIC limit applies per depositor per bank. If you have $250,000 in Cash App savings and also have a checking account at Lincoln Savings Bank, the two accounts count toward the same limit. If you have more than $250,000 to save, you would need to split it across multiple banks to keep all of it insured.

How Cash App savings interest compares to other options

Cash App's interest rate changes frequently and is not published in advance. To see the current rate, you have to open the app. As of late 2024, the rate has been competitive with high-yield savings accounts at online banks, which typically range from 4% to 5% APY depending on the bank and current market conditions.

The main difference is that online bank rates are usually fixed for longer periods, while Cash App's rate can change without notice. If you want to lock in a rate, a high-yield savings account at a bank like Ally, Marcus, or American Express will give you more certainty. If you want the highest possible rate at any given moment and do not mind checking the app regularly, Cash App savings can be competitive.

Money market accounts at traditional banks often pay similar rates to high-yield savings accounts but may require a higher minimum balance. Certificates of deposit (CDs) typically pay higher rates but lock your money away for a set period—usually three months to five years—and charge a penalty if you withdraw early.

Moving money in and out of Cash App savings

You can transfer money from your Cash App spending balance to savings instantly by tapping the Money Market icon and selecting "Add Money." You can also link a debit card or bank account and transfer money from there, though bank transfers may take one to three business days depending on your bank.

To withdraw money from savings, tap the Money Market icon and select "Withdraw." You can send it back to your spending balance instantly, or to a linked bank account or debit card. Bank transfers typically take one to three business days. There is no limit on how much you can withdraw or how often.

If you close your Cash App account, any money in savings will be returned to the bank account or debit card you linked. Make sure you have a linked account before closing the app, or contact Cash App support to arrange a transfer.

Frequently Asked Questions

Can I get direct deposit to my Cash App savings account?

No. Cash App savings does not have a routing number or account number, so you cannot set up direct deposit. If your employer or a government agency needs to deposit money, you will need a traditional bank account. You can deposit money to your Cash App spending balance and then transfer it to savings manually.

What happens to my savings if Cash App shuts down?

Your money remains at Lincoln Savings Bank and is FDIC-insured. If Cash App closes, your account would be transferred to another bank or you would receive your money. The FDIC guarantees deposits up to $250,000 per depositor per bank, regardless of what happens to the app or company.

Is there a fee to use Cash App savings?

No. There are no monthly fees, no minimum balance requirements, and no fees to transfer money in or out. You only pay tax on the interest you earn, which is reported on a 1099-INT form if it exceeds $10 in a year.

Can I earn interest on my Cash App spending balance?

No. Interest is only earned on money in the savings feature. Your spending balance does not earn interest. You have to move money to savings to start earning a return.

What if the interest rate drops to zero?

Cash App can lower the rate at any time, and there is no may provide it will stay where it is now. If the rate drops significantly, you can withdraw your money and move it to another savings account. There is no penalty for withdrawing, and transfers to a linked bank account take one to three business days.