After dipping its toe in taxes, stocks and bitcoin, Cash App has expanded its savings account to offer up to a 4.50% annual percentage yield, or APY. The popular peer-to-peer money transfer app announced via X (formerly Twitter) last week that with the help of a partner bank, it will help you “reach your goals faster.” But the announcement failed to mention one crucial point: The 4.50% APY only applies if you receive at least $300 in monthly direct deposits and apply for Cash App’s Cash Card.
Similar to Apple’s savings account, this nonbank financial platform has banking partners to provide savings services insured by the Federal Deposit Insurance Corp. You don’t need a bank account to use this service, but you do need a Cash App account. You can link your Cash App account to an external bank if you choose. And, unlike Apple’s savings product, the Cash App Savings account is available to both iPhone and Android users.
Cash App has more than 50 million users, which could make it easier for anyone not earning a high APY on their savings to take advantage of this new feature. The app will continue to allow you to send and receive money, shop anywhere Visa is accepted, and invest.
How Cash App Savings works
The Cash App Savings option is a no-fee high-yield savings account that earns 4.50% APY with qualifying direct deposits of $300 or more per month. Otherwise, your APY drops to a mere 1.50%.
To get the higher APY, you also must apply for the Cash Card, Cash App’s free Visa debit card issued by Sutton Bank. Doing so also qualifies your Cash App Savings account for up to $250,000 in FDIC coverage per person through Wells Fargo Bank, N.A.
Cash App’s high-yield savings account offers the following benefits:
- Low minimum deposit requirement. There’s a $1 minimum requirement to open a savings account.
- No monthly fees. You won’t pay a monthly maintenance fee or need to maintain a minimum monthly balance to avoid fees.
- Unlimited transfers. Move your money when you need it. There’s no limit on the number of monthly transfers you can make between your savings account and Cash App balance or an externally linked bank account.
- ATM access. You get unlimited free withdrawals with your Cash Card at any ATM in Cash App’s network if you receive at least $300 in direct deposits monthly.
- Savings subaccounts. Organize your savings goals into separate buckets, label them with an emoji and track your progress toward achieving your goal.
- Savings round-ups. Build your savings effortlessly with an automatic savings feature that rounds up purchases with your Cash App card to the nearest dollar and transfers the difference to savings.
- Get paid early. With direct deposit, you can receive your paycheck up to two days early.
How Cash App Savings stacks up against other banks
The Cash App Savings account offers a competitive APY that’s in line with those regularly featured on CNET’s best high-yield savings accounts list. You can deposit cash by visiting a cashier at a participating retailer, including convenience stores such as CVS and national grocery chains. However, there’s a $1 processing fee for each deposit transaction, which works against your savings goals.
Though the Cash App Savings account has a high APY, it isn’t the highest. You can find better rates with comparable mobile app features at online-only banks that don’t impose monthly deposit requirements.
| Bank | APY | Features |
| TAB Bank | 5.27% | Mobile and online banking tools |
| UFB Direct | 5.25% | Mobile banking app, auto savings transfer |
| Bask Bank | 5.10% | American Airlines miles rewards tied to savings |
| Synchrony Bank | 4.75% | Up to $5 in ATM fee refunds per month |
| SoFi | Up to 4.60% | Competitive rates for checking and savings |
| Cash App Savings | Up to 4.50% | Mobile savings tools |
| Apple Card Savings | 4.50% | Convenient for Apple card holders |
The Cash App Savings account may work well for you if you’re already a Cash App user or if you want to earn a competitive return without opening a bank account. But if you’re looking to earn the highest return on your money, check out other online banks offering higher APYs.
