Cash App does not offer a savings account, but it does offer a savings feature called Boosts and a linked savings product through a partner bank
Cash App itself is a payment app, not a bank. It holds your money in a Cash App balance (which sits in a custodial account at Lincoln Savings Bank or Sutton Bank, depending on your account type), but that balance earns no interest and offers no savings structure. If you are looking for a place to save money and earn interest, Cash App is not the right tool.
Cash App does offer a feature called Cash App Savings, launched in 2022. This is a separate product linked to your Cash App account that lets you move money from your Cash App balance into a savings pocket. Money in Cash App Savings earns interest at rates set by the partner bank (currently around 4% APY, though this changes with market conditions). However, this is not a full savings account — it is a savings feature within the Cash App ecosystem, and the money still belongs to a third-party bank, not Cash App itself.
If you want a traditional savings account with a debit card, bill pay, and all the standard banking features, you will need to open an account at an actual bank or credit union. Cash App Savings is useful only if you already use Cash App for payments and want to park some money there to earn a small return.
Key Takeaways
- Cash App balance does not earn interest and is not a savings account — it is a payment wallet that holds money temporarily.
- Cash App Savings is a separate feature that lets you move money into an interest-bearing pocket, currently earning around 4% APY through a partner bank.
- Cash App Savings has no monthly fees, but you cannot write checks, set up automatic bill pay, or use it like a traditional bank account.
- Money in Cash App Savings is FDIC-insured up to $250,000 through the partner bank, the same protection as a regular savings account.
- If you need a full checking and savings account with a debit card and bill pay, open an account at a bank or credit union instead.
How Cash App Savings works and what it costs
To use Cash App Savings, you must already have a Cash App account with a balance. Open the app, tap the Money tab, and select Savings. You can then move money from your Cash App balance into the savings pocket. The money earns interest daily and is paid monthly. There are no monthly fees, no minimum balance, and no withdrawal limits — you can move money back to your Cash App balance whenever you want.
The interest rate on Cash App Savings changes based on market conditions and the partner bank's rates. As of early 2024, the rate hovers around 4% APY, but this is not may provide and will shift over time. Check the Cash App app itself to see the current rate before you move money in. The interest is taxable income, and Cash App will send you a 1099-INT form at tax time if you earn more than $10 in interest during the year.
Cash App Savings is FDIC-insured, meaning your money is protected up to $250,000 if the partner bank fails. This is the same protection you get at a traditional bank. However, FDIC insurance covers each depositor at each bank separately, so if you also have money at the same partner bank through another account, the two balances count toward the same $250,000 limit.
When Cash App Savings makes sense and when it does not
Cash App Savings is useful if you already use Cash App for peer-to-peer payments and want to earn a small return on money you are not spending right now. The interest rate is competitive with many online savings accounts, and there are no fees or hoops to jump through. You can move money in and out instantly, so it works well for short-term saving or an emergency fund.
Cash App Savings does not make sense if you need a full banking relationship. You cannot set up automatic bill pay, you cannot get a debit card tied to the savings pocket, and you cannot deposit checks. If you receive paychecks, pay bills regularly, or need to write checks, you need a real checking account at a bank or credit union. Cash App Savings is a supplement to banking, not a replacement for it.
The interest rate on Cash App Savings is also not locked in. If rates drop, your earnings will drop with them. If you want to lock in a higher rate for a longer period, a certificate of deposit (CD) at a bank or credit union may be a better choice, though CDs require you to leave the money untouched for a set term.
How Cash App balance differs from Cash App Savings
Your Cash App balance is the money you load into the app for payments. It earns no interest. When you send money to a friend, pay a bill, or buy something through Cash App, it comes out of this balance. The balance is held at a custodial bank and is FDIC-insured, but it is designed for spending, not saving.
Cash App Savings is a separate pocket within the app where you can move money to earn interest. Once money is in Savings, it does not earn interest in your regular balance — you have to move it to the Savings pocket explicitly. You can move money back and forth between the two pockets as often as you want, and transfers are instant.
Think of it this way: your Cash App balance is your wallet, and Cash App Savings is a piggy bank attached to that wallet. Money in the wallet is ready to spend. Money in the piggy bank earns a small return but is still accessible if you need it.
FDIC insurance and what happens if Cash App or the partner bank fails
Cash App Savings is FDIC-insured through the partner bank (currently Sutton Bank or Lincoln Savings Bank, depending on your account). This means if the bank fails, the federal government guarantees your deposits up to $250,000. This is the same protection you get at any bank.
Cash App itself is not a bank and does not hold your money directly. The app is a payment platform owned by Block, Inc. (formerly Square). Your money is held by the partner bank, and Cash App is simply the interface you use to access it. If Cash App shuts down or stops working, your money is still safe at the partner bank, and you can contact the bank directly to recover it.
FDIC insurance is per depositor, per bank. If you have money in Cash App Savings at Sutton Bank and also have a savings account at Sutton Bank through another service, the two balances count toward the same $250,000 limit. If you have more than $250,000 to save, spread it across multiple banks to stay fully insured.
Alternatives to Cash App Savings
If you want to earn interest on savings, you have several options beyond Cash App. Online banks like Ally, Marcus, and Discover offer savings accounts with interest rates similar to or higher than Cash App Savings, and they come with full banking features like bill pay and check deposits. Credit unions often offer savings accounts with competitive rates and lower fees than traditional banks.
If you want to keep your money in a payment app ecosystem, other apps like PayPal and Venmo also offer savings features or linked savings accounts through partner banks. These work similarly to Cash App Savings — you move money into a savings pocket and earn interest — but the rates and features vary.
For longer-term saving, consider a certificate of deposit (CD) at a bank or credit union. CDs lock in a fixed interest rate for a set period (usually three months to five years), and the rate is typically higher than a savings account. The tradeoff is that you cannot withdraw the money without a penalty until the CD matures.
How to set up Cash App Savings
Open the Cash App app and tap the Money tab at the bottom. Look for the Savings option and tap it. If you do not see Savings, the feature may not be available in your state yet — Cash App rolled it out gradually, and it is not available everywhere. Tap the option to open Savings, and the app will walk you through the setup. You will need to verify your identity and link a funding source (usually your bank account) to move money into Savings.
Once Savings is set up, you can move money from your Cash App balance into Savings by tapping the transfer button. The money moves instantly and starts earning interest immediately. You can check your interest earnings in the Savings section of the app, and interest is deposited monthly.
If Savings is not available in your state, you can still use your Cash App balance for payments, but you will not be able to earn interest through Cash App. In that case, consider opening a savings account at an online bank or credit union instead.
Frequently Asked Questions
Can I use Cash App Savings as my main savings account?
You can, but it is not ideal. Cash App Savings works well for money you want to keep accessible and earn a small return on, but it lacks features like bill pay, check deposits, and a debit card. If you need those features, open a full savings account at a bank or credit union and use Cash App Savings as a supplement.
What happens to my Cash App Savings if I delete the app?
Your money stays safe at the partner bank. Deleting the app does not delete your account or your money. You can reinstall Cash App and access your Savings again, or contact the partner bank directly to withdraw your money. Your deposits are FDIC-insured regardless of what happens to the app.
Can I transfer money from Cash App Savings to another bank?
Yes. You can move money from Cash App Savings back to your Cash App balance, and then transfer it to your linked bank account. Transfers to your bank account usually take one to three business days, depending on your bank. You can also contact the partner bank directly to request a wire transfer or check.
Is the interest rate on Cash App Savings may provide?
No. The rate changes based on market conditions and the partner bank's decisions. Cash App will notify you if the rate changes, but you have no may provide that the current rate will stay the same. If rates drop, your earnings will drop with them.
Do I have to pay taxes on Cash App Savings interest?
Yes. Interest earned on Cash App Savings is taxable income. If you earn $10 or more in interest during the year, Cash App will send you a 1099-INT form at tax time. You must report this interest on your tax return.