Venmo does not offer a savings account
Venmo is a payment app designed to move money between people quickly — not to hold your money and earn interest on it. You can keep a balance in your Venmo account temporarily, but that balance sits in a non-interest-bearing holding account. Venmo is owned by PayPal, and while PayPal does offer savings products through partnerships, Venmo itself does not.
If you are looking for a place to save money and earn interest, you will need to use a separate account at a bank or credit union. The sections below explain what Venmo's balance actually is, what you can do with it, and where to look if you want savings features.
Key Takeaways
- Venmo's balance is a holding account for money between transfers, not a savings product, and it earns no interest.
- You can keep money in Venmo temporarily, but it is meant to move in and out, not stay there long-term.
- To earn interest on your money, you need a separate savings account at a bank, credit union, or online savings provider.
- PayPal (Venmo's parent company) offers a savings product called PayPal Savings, but it is separate from Venmo and requires a different account.
- Money Market Accounts and High-Yield Savings Accounts at traditional banks typically offer better interest rates than digital wallet services.
What Venmo's balance actually is
When you add money to Venmo, it goes into a balance — a temporary holding space. This is not a bank account. Venmo is not a bank; it is a payment service. Your Venmo balance is held by a bank partner, but you do not have a direct relationship with that bank, and the balance does not earn interest.
Think of it like a gift card. You load money onto it, you spend it, and you can check how much is left. But the money on a gift card does not grow. Your Venmo balance works the same way. The money sits there until you send it to someone, transfer it to your bank account, or use it to pay a merchant.
Venmo's purpose is speed and convenience for splitting bills and paying friends — not storage. The company expects money to move through your account, not stay in it.
What you can do with money in your Venmo account
Your Venmo balance can be used in a few ways. You can send it to another person through the Venmo app. You can transfer it to your linked bank account (this usually takes one to three business days, though Venmo offers an when ready transfer option for a small fee). You can also use your Venmo balance to pay certain merchants if Venmo has partnered with them, though this is limited.
You cannot earn interest on it. You cannot set up automatic deposits or savings goals within Venmo. You cannot use it like a savings account at all. If you leave money in Venmo for months, it will still be the same amount when you check back — it will not have grown.
Why Venmo does not offer savings features
Venmo is built for one job: moving money between people fast. Adding savings features would require Venmo to become a bank or partner with one in a way that lets customers earn interest. That would mean regulatory approval, insurance requirements, and a different business model. Venmo's owners decided to keep the app focused on payments instead.
PayPal, Venmo's parent company, does offer a savings product called PayPal Savings, but it is a separate account you would need to open. It is not part of Venmo. This separation is intentional — Venmo stays straightforward and fast, while PayPal handles the banking products.
Where to put money if you want to earn interest
If you want your money to grow, you need a savings account at a bank or credit union. These accounts are insured by the FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration), which means your money is protected up to certain limits if the institution fails.
A High-Yield Savings Account at an online bank typically offers the highest interest rates available right now. Online banks have lower overhead costs than brick-and-mortar banks, so they pass those savings to you in the form of higher interest. You can open one in minutes, and your money is just as protected as it would be at a traditional bank.
A Money Market Account at a bank or credit union is another option. It usually offers interest rates close to a savings account but may require a higher opening balance. Some Money Market Accounts also come with a debit card or check-writing ability, which gives you more flexibility.
Credit unions often offer competitive rates on savings accounts too, and membership is sometimes open to anyone in your community or profession. If you already bank with a credit union, ask them about their savings options.
How to move money from Venmo to a savings account
If you have money sitting in Venmo and want to move it to a savings account where it can earn interest, the process is straightforward. Open Venmo, go to your balance, and select "Transfer to Bank." Choose the bank account you want to send it to (you will need to have linked one first). Venmo will ask how much you want to transfer.
Standard transfers take one to three business days and are free. Venmo also offers when ready transfers for a small fee (usually around 1% of the amount). Once the money arrives in your bank account, you can then move it to a savings account if your bank keeps it in a checking account by default.
If you do not have a bank account linked to Venmo yet, you will need to add one. Venmo will ask for your routing number and account number, which you can find on a check or in your bank's online portal.
Comparing Venmo to other payment apps
Other payment apps like Square Cash, Google Pay, and Apple Pay also do not offer savings accounts. They work the same way Venmo does — they hold a balance temporarily so you can send money or pay merchants, but they do not earn interest. If you use multiple payment apps, none of them are designed for saving.
Some fintech companies (technology companies that offer financial services) have tried to blur the line between payment apps and savings accounts. PayPal Savings is one example. But these are separate products from the payment app itself, and you have to choose to use them.
Frequently Asked Questions
Can I earn interest if I keep money in Venmo for a long time?
No. Venmo's balance never earns interest, no matter how long you leave money in it. Venmo is not designed for saving. If you want your money to grow, you need a savings account at a bank or credit union.
Is my money safe in Venmo if I leave it there?
Your money is held by a bank partner and is insured, so it is not at risk of disappearing. However, Venmo is not the right place to keep money long-term. If you want to store money safely and earn interest, use a savings account instead.
Does PayPal Savings work with my Venmo account?
No. PayPal Savings is a separate account that you would need to open through PayPal, not through Venmo. You cannot link it directly to Venmo. If you want to use PayPal Savings, you would transfer money from Venmo to your bank, then to PayPal Savings.
What is the difference between Venmo and a bank account?
Venmo is a payment app — it moves money between people. A bank account is where you store money, and a savings account lets your money earn interest. You can use Venmo and a bank account together, but they serve different purposes.
Can I set up automatic savings with Venmo?
No. Venmo does not have savings features like automatic transfers or savings goals. If you want to automate your savings, use a bank or credit union that offers automatic transfers from checking to savings.