Editor's Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate as the Fed rate changes. CNBC Select will update as changes are made public.
Cash App earned its reputation as a top money transfer app, but it has added more traditional banking features, including a high-yield savings account (HYSA) and VISA-branded debit card, as well as giving users the ability to invest in stocks and buy and sell bitcoin.
CNBC Select looks at Cash App's banking features and sees how they stack up to the competition.
Cash App
On Cash App's secure site
Cost
Free to download and use basic services
Transfer speed
1 to 3 business days or instant cash-out deposits for a 1.5% fee (25 cent minimum)
Standout features
App allows users to invest money in individual stocks as well as buy and sell bitcoin
Links to accounts
Yes, bank accounts and credit cards
Availability
iOS or Androis
Security features
Data encryption and fraud detection technology; unique, one-time login codes, two-factor authentication
Terms apply.
Pros
- Free debit card for users who opt in
- Free ATM withdrawals if you direct deposit at least $300 per month (otherwise $2 per withdrawal)
- Cash App Offers provide discounts with certain retailers that are automatically applied to a purchase to help users save money (only one may be active at a time)
- App includes features to let users invest in stocks and buy and sell Bitcoin
Cons
- Charges a 3% processing fee when using linked credit card as a payment method
- Charges a 1.5% fee for instant cash-outs (to disperse funds immediately to your bank account with no waiting period)
- Cash App cash and savings balances are covered by FDIC insurance through a partner bank (up to $250,000) only if you have a Cash App Card (or are a sponsor of any active sponsored accounts)
Cash App Banking review
- How Cash App Banking works
- Cash App Banking APY
- Cash App Banking features
- Fees
- Cash App Banking vs. Chime® Banking
- FAQs
- Bottom line
How Cash App Banking works
There are no fees to download Cash App or access its basic services. Users can open an account without a bank account or credit check and there are no minimum balance requirements after the $1 opening deposit (unless you want the 4.50% APY).
You can add money to your balance via direct deposit or by depositing cash at participating retailers like Walmart, Walgreens, 7-Eleven and Family Dollar. Similar to a traditional checking account, you can use your account and routing numbers to pay bills online and withdraw money from ATMs with your Cash App Card.
Because Cash App is a financial services platform and not a bank, deposits are FDIC-insured through Wells Fargo Bank for up to $250,000 per person.
Cash App Banking APY
To open a Cash App savings account, you must be 18 or older and have a Cash App personal account and a Cash App Card. There is a $1 opening deposit requirement but no monthly fees.
One of Cash App's biggest draws is that savers can earn up to 4.50% APY, a return on par with some of the best high-yield savings accounts. To unlock that higher APY, though, you'll have to set up a monthly direct deposit of at least $300.
Otherwise, the savings account earns a base 1.50% APY.
If you're already using Cash App for payment transfers or ATM access, the savings account is the icing on the cake. If you just want a high yield and aren't looking for other features, these are HYSAs with APYs above 5.00% and no monthly deposit requirements.
Western Alliance Bank Savings Account
Western Alliance Bank is a Member FDIC.
Annual Percentage Yield (APY)
5.24% APY
Minimum balance
$1 minimum deposit
Monthly fee
None
Maximum transactions
Up to 6 transactions each month
Excessive transactions fee
The bank may charge fees for non-sufficient funds
Overdraft fee
No overdraft fee
Offer checking account?
No
Offer ATM card?
No
Terms apply.
Newtek Bank Personal High Yield Savings
Newtek Bank is a Member FDIC.
Annual Percentage Yield (APY)
5.25% APY
Minimum balance
$0.01 to earn interest
Monthly fee
None
Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle; transaction amount limits apply; withdrawals from your account can only be transferred to the original external funding source
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
Only a business checking account
Offer ATM card?
Yes, if have a Newtek checking account
Terms apply.
UFB Secure Savings
UFB Secure Savings is offered by Axos Bank ® , a Member FDIC.
Annual Percentage Yield (APY)
Up to 5.25%APY on any savings balance; add a UFB Freedom Checking and meet checking account qualifications to get an additional up to0.20%APY on savings
Minimum balance
$0, no minimum deposit or balance needed for savings
Fees
No monthly maintenance or service fees
Overdraft fee
Overdraft fees may be charged, according to the terms; overdraft protection available
ATM access
Free ATM card with unlimited withdrawals
Maximum transactions
6 per month; terms apply
Terms apply.
Read our UFB Secure Savings review.
Bask Interest Savings Account
Bask Bank and BankDirect are divisions of Texas Capital Bank, Member FDIC.
Annual Percentage Yield (APY)
5.10% APY1
Minimum balance
None
Monthly fee
None
Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
No
Offer ATM card?
No
Terms apply.
1Annual Percentage Yields (APY) and Interest Rates shown are offered on accounts accepted by Bask Bank and effective per the dates shown above, unless otherwise noted. Annual Percentage Yield is variable and subject to change at any time. No minimum balance requirement and no monthly service charge. Must fund within 15 business days of account opening.
Cash App Banking features
Cash App has expanded beyond just payment transfers to offer a suite of banking features.
Savings account
The standard Cash App Savings APY is 1.50% after you receive a card. You can unlock an additional 3% (for a total APY of 4.50%) by setting up a direct deposit of $300 or more in paychecks every month.
You can round up Cash App Card purchases to the nearest dollar and deposit the difference to your savings account. You can also setsavings goals and assign an emoji to the objective you've selected.
Cash App users who sign up for direct deposit can get their paycheck up to two days early and have Cash App's ATM fees waived.
You can't withdraw cash directly from your Cash App savings account, but you can make unlimited instant transfers between your Cash App balance and savings with no fees or monthly caps.
Debit card
Although Cash App is a mobile payment app, it offers the Cash App Card, a prepaid Visa debit card issued by Sutton Bank. It connects directly to your balance and doesn't come with the monthly fees or minimum balance requirements often associated with traditional checking accounts.
Once you open an account with Cash App, you can request the Cash Card and use it immediately via Apple Pay or Google Pay. You can use it to pay online or in stores anywhere Visa is accepted.
Cash Card users can get exclusive access to concert presales, special events and limited-edition collections. They can also select categories to earn cash back from, including purchases at restaurants, coffee shops and stores. Cardholders can only activate one offer at a time, however, and offers change regularly.
ATM access
The Cash App Card can be used to make withdrawals from ATMs and get cash back at checkout.
Customers who direct deposit at least $300 a month get free unlimited withdrawals from in-network ATMs, as well as one free out-of-network withdrawal every month. If you don't have qualifying direct deposits (or use an out-of-network ATM), there is a $2.50 fee — plus any charge from the ATM operator.
There are also limits on ATM withdrawals:
- $1,000 per day
- $1,000 per ATM transaction
- $1,000 per week
Fees
Cash App's banking features don't come with monthly fees and only require a $1 opening balance (unless you want to earn the 4.50% APY savings rate).
There are no overdraft fees and customers who direct deposit at least $300 can receive up to $50 in overdraft coverage protection.
Security features
Cash App utilizes standard security features like data encryption, security locks, identity verification and fraud detection. Users can also choose to enable Face ID.
Cash App sends notifications about suspicious activity (like a log-in in from a new device), as well as real-time transaction alerts.
Cash App Banking vs. Chime Banking
Like Cash App, Chime is a fintech company partnering with a traditional bank (Oklahoma-based Stride Bank) to offer savings and checking accounts, debit cards and credit cards.
Chime Checking + High-Yield Savings
Chime ® banking services, credit and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.
Annual Percentage Yield (APY)
Chime Checking 0% APY, required to enroll in Chime High-Yield Savings 2.00%APY
Minimum balance
$0, no minimum deposit or balance
Fees
No monthly maintenance or overdraft fees. SpotMe service with eligibility for no-fee overdraft up to $200.
Perks
Paycheck available up to two days early with direct deposit. Automated savings of 10% of certain direct deposits. Round Ups feature transfers spare change from purchases to savings.
Maximum transactions
Cash withdrawals from checking up to $515 per day at any ATM or as an over-the-counter bank withdrawal. $2,500 maximum daily spend, including any withdrawals, purchases and incurred fees.
ATMs
60,000+ in-network no-fee ATMs.
Mobile check deposit
Yes
Terms apply.
Like Cash App, Chime doesn't charge monthly fees or overdraft fees for checking and there is no minimum account balance requirement. Chime also offers a debit card with fee-free ATM access for customers who set up direct deposit.
Chime's savings account has a lower 2.00% APY, but there is no direct deposit requirement to unlock the full yield.
Where Chime outshines Cash App is with its credit-builder secured credit card, which doesn't require a credit check and has no minimum security deposit requirement, no annual fee and no interest.
If you're focused on maximizing the return on your savings, Cash App is the stronger option. If you're building or repairing your credit, Chime might be the better choice.
FAQs
Do I need a bank account to use Cash App Banking?
No, you don't need a bank account to use Cash App. You can set up direct deposits or make deposits at participating retailers.
Can I use an ATM to take out money from my Cash App Banking account?
Cash App customers who direct deposit at least $300 a month get free unlimited withdrawals from in-network ATMs and one free out-of-network withdrawal a month. If you don't have qualifying direct deposits or use an out-of-network ATM, there is a $2.50 fee plus any charge from the ATM operator for out-of-network withdrawals.
Is Cash App Banking safe?
Cash App uses standard encryption and fraud detection technology to protect users' data. Deposits are FDIC-insured through Wells Fargo for up to $250,000 per person.
Compare offers to find the best savings account
Bottom line
Cash App isn't a conventional approach to banking, but it can be helpful for those who've had trouble getting a bank account. There are no fees and the Cash App Card is a free debit card that can be used anywhere Visa is accepted. If you want to earn the 4.50% APY on Cash App Savings, though, you'll have to set up a monthly direct deposit of at least $300.
Why trust CNBC Select?
AtCNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking products.While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. Seeour methodologyfor more information on how we choose the best money transfer apps.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
