Cash App Savings review

Cash App makes it easy to send and receive payments, but you can also use it to build your savings. Cash App Savings* is a feature that carries no monthly fees or minimum deposit requirements, and you can earn a competitive interest with the safety of FDIC insurance.

Our verdict

Cash App is a financial services platform, not a bank, but it offers an attractive high-yield savings option in partnership with banks that provide banking services. You need just $1 to get started, and you can easily transfer money between your Cash App balance and savings at any time.

You might consider saving with Cash App if you:

• Receive at least $300 per month via direct deposit (to qualify for the highest advertised APY**)
• Already use Cash App to send and receive payments, or plan to open an account
• Are comfortable saving online to earn a higher APY
• Have a Cash App Card

Do keep in mind that Cash App offers a long list of other perks in addition to the potential for savings growth, including extended overdraft coverage and excellent ATM access.

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Compared to other online savings options

Vanguard Cash Plus Account

Vanguard’s cash management account is designed to hold your uninvested cash. You might consider this account if Vanguard is your preferred brokerage and you’re looking for a great savings rate. There are no fees or minimum balance requirements, and you can get up to $1.25 million in FDIC coverage through Vanguard’s network of partner banks.

Read our full editorial review of the Vanguard Cash Plus management account.

Ally Bank savings account

Ally Bank offers a consistently competitive savings rate–albeit not always the highest available nationwide. The account has no monthly maintenance fees or minimum deposit requirements as well. However, the Ally Bank savings account does not come with an ATM card for ATM access.

Read our full editorial review of the Ally Bank savings account.

Affirm savings account

Affirm allows you to buy now, pay later, but you can also save money through the app. The Affirm Money Account has no minimums or fees and earns an APY that’s comparable to other top online savings accounts. Deposits are FDIC-insured, and you can also apply for the Affirm Card for convenient spending.

Read our full editorial review of the Affirm savings account.

Interest rates

When you’re trying to grow savings, a high interest rate is probably the top priority. Cash App Savings doesn’t disappoint–the APY is among the highest of savings rates. You must receive a total of $300 or more per month in direct deposits to qualify for the maximum advertised rate. If you cannot meet that requirement, the interest rate becomes much less competitive.

As you compare Cash App to other savings options, ask yourself the following:

• Does the rate apply to all balances?
• Are there any caps on rates? For example, does the APY drop once your balance exceeds a certain amount?
• How often does interest compound?

Remember, interest rates can change. The rate you earn now may not be the same rate you earn six or 12 months down the road.

Fees

Cash App is fee-friendly, with no monthly fees.

Keep in mind, however, that Cash App does charge other fees. For example, if you want to transfer funds from your Cash App balance to your bank account instantly, you’ll pay a fee for that.

Additionally, certain services that you may traditionally come to expect from a bank account may not be available through the Cash App.

ATM access

You can use your Cash App card at any ATM that accepts Visa, including Walgreens ATMs.

Cash App partners with a network of over 40,000 ATMs to provide surcharge-free ATM access, provided you have at least $300 in combined direct deposits for the month. Furthermore, if this direct deposit requirement is met, you get one reimbursed out-of-network ATM withdrawal for the month. Again, that’s also the direct deposit amount you need to have to earn the advertised APY with Cash App’s savings option.

Otherwise, Cash App charges $2.50 for each ATM withdrawal. Note: out-of-network ATM operators can also charge fees.

Account management

You’ll need to log in to Cash App to manage your account. Once logged in, you can:

• Transfer funds in or out of savings
• Set up savings goals
• Schedule automatic deposits to your Cash App Savings balance

Cash App gives you two automatic savings options: direct deposit and round-ups. Round-ups let you save your spare change. All you need to do is spend using your Cash App card, and the difference is rounded up and deposited into savings.

FDIC insurance

FDIC insurance*** protects depositors if a bank fails. If your bank shuts down, the FDIC ensures that you receive your money back, up to your coverage limit.

Cash App isn’t a bank, but it partners with FDIC-insured banks to offer savings accounts. That means your account is covered by the FDIC, up to $250,000 per depositor. 

What to look for in a savings account

Savings accounts can help you grow your money, but it’s important to choose the right one. If you’re not sure which account to choose, these questions can help.

• How competitive is the interest rate?
• Do you want a digital savings option or a traditional bank account?
• Are there minimum deposit or minimum balance requirements?
• What do you need to open an account?
• Do you need to open an account with new money to get the advertised APY?
• Can you make ATM withdrawals? If so, what networks can you access and what does it cost?
• What other fees does the bank charge, if any?
• Does the bank offer any built-in savings or money management tools?
• What are the deposit and withdrawal limits?

It might help to start by looking at savings accounts at online banks first, since rates tend to be higher while fees are lower. You can then cast the net wider to include other financial services providers, traditional banks, and credit unions.

Frequently asked questions

Can I use Cash App as a savings account?

Yes, Cash App offers a savings component that makes it an excellent alternative to a savings account. You can transfer funds from your savings balance to your Cash App balance or link an external bank account for transfers.

Is Cash App Savings worth it?

Cash App Savings could be worth it if you’re a regular Cash App user and you want to get a competitive rate on savings balances. There are no fees and no minimums and it’s easy to get started if you already have a Cash App account.

Is an online savings account the best way to save?

Online savings accounts can offer benefits and features that you don’t always get with traditional savings accounts. You’re more likely to earn a higher interest rate on savings balances while paying less in fees. And online banks might offer built-in savings tools like round-ups or sweeps to help you grow your balance on autopilot.

Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Prepaid debit cards issued by Sutton Bank, Member FDIC. See Terms and Conditions.

*Cash App will pass through a portion of the interest paid on your savings balance held in an account for the benefit of Cash App customers at Wells Fargo Bank, N.A., Member FDIC. To earn the highest interest rate on your Cash App savings balance, you need to (a) have a Cash App Card or sponsor one or more sponsored accounts and receive at least $300 in paycheck direct deposits each month; or (b) have a sponsored account with sponsor approval to earn interest. Exceptions may apply. Savings yield rate is subject to change.

**Cash App reimburses ATM fees for all in-network withdrawals and one out-of-network withdrawal when you deposit at least $300 monthly into Cash App.

***With a Cash App Card, your funds are eligible for FDIC pass-through insurance through our Program Banks, Wells Fargo Bank, N.A., and/or Sutton Bank, Member FDIC, for up to $250,000 per customer when aggregated with all other deposits held in the same legal capacity at each Program Bank above, if certain conditions are met.