What to Know About Cash App's Savings Account

• Author: Alicia Cole
• Posted: 2024-10-29

Cash App is a popular app that lets you send money to friends and pull off other financial moves. They offer a special savings account that could help grow your money faster than regular banks thanks to a higher interest rate.
 

The Lowdown on Cash App's Savings

Although Cash App is a tech company and not a real bank, it works with Wells Fargo Bank to manage its savings account. This means your savings are in good hands and even insured for up to $250,000, but only if you have the Cash App debit card.

Here's what the Cash App savings account gives you:
 

• Interest Rates: You'll earn between 1.5% and 4.5% interest, which is quite a lot more than what you'd usually get from a typical savings account.
• Minimum to Start: You only need $1 to open an account.
• Fees: Great news, you don't have to pay monthly fees, and moving money to and from this account won't cost you either.
• Easy Access: Transfer money anytime you want – no limits on how many times you can do it each month.

Remember, the money in your savings account is set apart from the cash you might use for everyday things like sending money to buddies, shopping with your Cash App Card, or buying stocks.
 

Starting a Savings Account with Cash App

Want to open an account? Follow these steps:
 

• Get Cash App on your phone.
• Order a Cash App debit card which you'll need to set up your savings account.
• Pop at least $1 into your savings to start earning interest.
• Set up a direct deposit of $300 or more each month if you want that juicy 4.5% interest rate.

 

Is It Worth It?

If you want to save money without hassle and get more interest than normal, Cash App's savings account might work for you. Just be mindful that to get the highest interest rate, you must put at least $300 each month into your account.

Check Out: How to Handle a Sudden Windfall Wisely
 

Other Choices

It's smart to look around at other banks' savings accounts to see which one suits you best. Here are some alternatives:
 

• SoFi High-Yield Savings: Offers up to 4.30% interest, plus some other neat benefits.
• American Express High-Yield Savings: Gives you 4.00%, easy management via an app, and no minimum balance needed.
• Capital One 360 Performance Savings: Also at 4.00%, and you don't have to jump through hoops to enjoy this rate.
• CIT Bank Platinum Savings: You could earn up to 4.70% if you've got at least $5,000 saved, making it an option for those with more to stash away.

Before you make your choice, consider what features you really need and how much you're able to save. Happy saving!

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