Cash App savings is probably one of the biggest features the payment giant has released so far.
It works more like a traditional savings account, allowing you to make interest-free savings and set saving goals.
There are just plenty of cool things you should know about the Cash App savings account, and believe me, you've come to the right place.
Let's see what this savings account is all about, how you can get started with using it, and whether it is a good option for you.
What Is The Cash App Savings Account?
Cash App savings is a feature of the Cash App that allows users to save or store money in a place different from their main Cash balance.
How Does Cash App Savings Work?
The Cash App savings account is a separate folder that lets you store money with Cash App. You can store funds from your Cash App balance or from your linked funding source (bank account or debit card).
What's the essence of saving without a goal? You can set saving goals for your Cash App savings account for your financial needs.
To do so:
- Tap the Money tab on your Cash App home screen.
- Tap your savings balance.
- Select "Set a goal", then continue.
- Enter the amount you would like to save.
You'll think of the Cash App savings account as a different account with a different number. Well, you may be right on a point, but the Cash App savings account does not have a separate account number from your main Cash App account.
This account offers an amazing feature for Cash Card users. It lets you round up your Cash Card transactions to the nearest dollar and automatically have the funds sent to your savings balance.
To do so:
- Tap the Money tab on your Cash App home screen
- Tap your savings balance
- Select "Round Ups."
- Tap "Turn on Round Ups."
Also Read: Is Cash App A Checking Or Savings Account?
How To Create A Cash App Savings Account
Creating a Cash App savings account is very easy. In fact, if you are already a Cash App user, you don't need to create a new savings account — you can access this feature directly on your Cash App home screen.
All you need to do is access the Money tab and tap Savings to start saving with Cash App. You can start with setting a saving goal right away.
How To Add Money To Cash App Savings Account?
Adding money to the Cash App savings account is very easy and straightforward. You can transfer funds to your savings account either from your main Cash App balance or from your linked funding source (bank account or debit card).
To do so:
- Tap the Money tab on your Cash App home screen
- Tap your savings balance
- Select "Transfer in", then choose the amount you would like to add
- Change the account funds will transfer from using the grey arrow (Cash balance, external bank account, or linked debit card)
How To Withdraw Money From The Cash App Savings Account
Withdrawing or transferring money from the Cash App savings account is very easy and straightforward. However, before you should be able to do so, you'll need to transfer the funds to your main Cash balance.
To withdraw money from the Cash App savings account:
- Tap the Money tab on your Cash App home screen.
- Tap your savings balance.
- Select "Transfer out."
- Select an amount then tap "Move to Cash balance."
Once the funds are transferred to your Cash balance, you should be able to withdraw them to your bank account or debit card through the Cash Out feature of the app.
Cash App Savings Interest Rate
While the Cash App savings lets you store funds, it doesn't let you earn interest, unlike traditional or high-yield savings accounts.
Is Cash App Savings Safe?
Yes, the Cash App savings account is completely safe. Cash App uses the latest encryption technology to securely store customer's funds so you should rest assured when using Cash App.
Also Read: Is Cash App Anonymous?
Is Cash App Savings FDIC Insured?
Yes, Cash App savings is FDIC insured.
Cash App partners with Wells Fargo Bank, which is an FDIC Member to insure customer's account balances with amounts of up to $250,000.
Final Thoughts
The Cash App savings account is a cool feature that Square's Cash App has had to release. No need to open a new account—you can start saving money with Cash Ap just through a few clicks.
While the Cash App savings account might look similar to a traditional savings account, it does not come with an account number and there's no interest rate associated with the account.
This account is best for those who need to save money that is easily accessible for immediate use and do not expect to earn interest on their savings.
Of course, this should be a convenient option for students.