Cash App offers a special type of savings account that you can use right through its app. It's designed to help you save money, whether for a rainy day or a specific goal, and it gives you a much better interest rate compared to most other banks.
Details about Cash App Savings Account
Cash App isn't a bank itself. It partners with Wells Fargo Bank to offer this service. Here's what you get if you decide to open a Cash App savings account:
- Interest Rates: You earn at least 1.50% APY on your saved money. If you have a Cash App card and get at least $300 each month in direct deposits, that rate jumps to 4.50% APY.
- Insurance: If you have the Cash App debit card, your money (up to $250,000) is insured by the FDIC through Wells Fargo. This means it’s safe even if the bank has problems, but not if Cash App itself does.
- Fees and Requirements: There’s no minimum amount needed to open an account, no monthly fees, and transferring money is free. However, taking money out from ATMs that are not partnered with Cash App will cost you $2.50 each time.
You can transfer funds between your regular Cash App balance and your savings anytime you want, and there's no limit to how many times you can do this every month.
Setting Up Your Account
- Download Cash App and sign up.
- Get a Cash App Card, which you need to start your savings account.
- Add at least $1 to start earning interest.
- If you want the higher interest rate, set up direct deposits of at least $300 per month.
Is It Worth It?
If earning more with your savings sounds good, and you’re okay with the direct deposit condition for the highest rate, Cash App's savings account might be right for you.
It offers higher interest rates than many others and has very few fees.
Check Out: How to Handle a Sudden Windfall Wisely
Alternatives to Consider
If you're not sure about Cash App, look at other high-yield savings accounts:
- SoFi High-Yield Savings Account: Offers up to 4.30% APY and various other perks with no minimum deposit needed for the highest rate.
- American Express High-Yield Savings Account: Provides 4.00% APY with no minimum requirements and excellent digital tools to manage your money.
- Capital One 360 Performance Savings: Also 4.00% APY without any minimal deposit or balance needs.
- CIT Bank Platinum Savings: A higher rate of up to 4.70% APY is available, but better for those who can maintain at least $5,000 in their account.
Each of these alternatives has its setup and rules, so picking the right one for you depends on your savings goals and how you like to manage your money.
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