Cash App does not have a traditional savings account, but it does have a savings feature that works differently

Cash App is a money transfer app, not a bank, so it cannot offer you a savings account in the way a bank does. However, Cash App does have a feature called Cash App Savings that lets you set money aside and earn a small amount of interest on it. The interest rate changes, so check the app to see what it is offering right now.

If you want a savings account that works more like a traditional bank account — with FDIC protection that guarantees your money up to $250,000 if the bank fails — you will need to open an account at an actual bank or credit union instead. Cash App Savings is not FDIC-insured in the same way, though your money is held at a partner bank.

The choice between Cash App Savings and a bank savings account depends on what you need the money for and how much you plan to save.

Key Takeaways

  • Cash App Savings lets you earn interest on money you set aside, but it is not the same as a bank savings account.
  • You can only open Cash App Savings if you already have a Cash App account and have verified your identity.
  • A traditional bank or credit union savings account offers FDIC protection and may have higher interest rates, depending on the bank.
  • Cash App Savings works best if you already use Cash App for daily money transfers and want to earn a small return without opening a separate account.

How to set up Cash App Savings

To open Cash App Savings, you need an active Cash App account with your identity verified. Open the Cash App, tap the banking icon (it looks like a bank building), and look for the Savings option. Tap it, then follow the prompts to link a savings goal or amount.

Cash App will ask you to confirm how much you want to move into savings. You can transfer money from your Cash App balance into savings, or set up automatic transfers from a linked bank account. Once the money is in savings, it starts earning interest at whatever rate Cash App is currently offering.

You can move money out of Cash App Savings whenever you need it — there are no withdrawal limits or waiting periods. This makes it different from some bank savings accounts, which may charge a fee if you withdraw more than a certain number of times per month.

How Cash App Savings compares to a bank savings account

The main difference is that a bank savings account is FDIC-insured, meaning the federal government guarantees your money up to $250,000 if the bank fails. Cash App Savings is not FDIC-insured in the traditional sense, though your money is held at a partner bank. You should read Cash App's terms to understand exactly how your money is protected.

Bank savings accounts often have higher interest rates than Cash App Savings, especially at online banks or credit unions. However, rates change frequently, so compare what is available right now before you decide. Some banks also charge monthly fees or require a minimum balance, while Cash App Savings typically does not.

If you are saving a large amount of money or want the strongest legal protection, a bank savings account is the safer choice. If you already use Cash App for daily transfers and want to earn a small return on money you keep there, Cash App Savings is simpler because you do not need another account.

What happens to your money while it is in Cash App Savings

While your money sits in Cash App Savings, it earns interest based on the current rate. Cash App deposits your interest earnings directly into your savings balance, so the amount grows over time. The interest is calculated daily but paid monthly, so you will see the deposit once a month.

You can check your current balance and interest earned anytime by opening the app and tapping the Savings section. Cash App will also show you the current interest rate so you know what you are earning.

When to use Cash App Savings versus a separate bank account

Use Cash App Savings if you already have a Cash App account, you transfer money regularly through the app, and you want to earn interest without opening a new account at a bank. It is convenient because your savings and spending money are in one place.

Open a separate bank savings account if you are saving a large amount, you want FDIC protection, you want a higher interest rate, or you do not use Cash App for daily transfers. A bank account is also better if you want to keep your savings completely separate from money you spend regularly.

Some people use both: they keep everyday money in Cash App and open a bank savings account for longer-term goals. There is no rule against having accounts in multiple places.

How to move money between Cash App and a bank account

You can transfer money from your Cash App balance to a linked bank account by tapping the balance, selecting "Transfer to Bank," and entering the amount. The transfer usually takes one to three business days, depending on your bank.

You can also move money from a linked bank account into Cash App by tapping the "Add Cash" button and selecting your bank. This transfer is usually when ready if you use a debit card, or it may take a day or two if you transfer from your bank account directly.

Frequently Asked Questions

Is my money safe in Cash App Savings?

Your money is held at a partner bank, but Cash App Savings is not FDIC-insured the way a traditional bank account is. Read Cash App's terms to understand the exact protections. If you want the strongest may provide, a bank savings account with FDIC insurance is safer.

Can I earn interest on money in my regular Cash App balance?

No. Interest is only earned on money you move into the Cash App Savings feature. Money in your regular Cash App balance does not earn interest.

What interest rate does Cash App Savings pay?

The rate changes and varies over time. Open the Cash App and check the Savings section to see the current rate. You can also compare it to rates at banks and credit unions before you decide where to save.

Can I withdraw money from Cash App Savings anytime?

Yes. You can move money out of Cash App Savings whenever you want, with no withdrawal limits or fees. This makes it more flexible than some bank savings accounts.

Do I need a bank account to use Cash App Savings?

You do not need a separate bank account to use Cash App Savings, but you do need a verified Cash App account. You can link a bank account if you want to transfer money in and out, but it is not required.