Understanding Savings Interest
Here are a few important things to know about how interest works.
The interest rate
The interest rate for savings is also known as annual percentage yield (APY). This rate is the amount you'll earn on your savings over a year.
Cash App will pass through a portion of the interest paid on your savings balance held in an account for the benefit of Cash App customers at Wells Fargo Bank, N.A., Member FDIC. Interest rates are subject to change. See Cash App Savings Terms of Service to learn more.
How do I unlock 4% interest?
Direct deposit $300 or more from your paychecks each month to qualify for our highest current interest rate.
How interest is calculated
Your interest accrues daily and compounds monthly. You'll earn interest on the money you put into savings plus the interest that gets paid to your balance every month.
How much you earn
The longer you keep your money in savings, the more interest you’ll earn. Here’s an example of how interest grows over time at a sample rate of 3%* APY:
Today: You make an initial deposit of $100
Year 1: You earn $3.00 in interest. Your total balance would be $103.
Year 2: You earn $3.09 in interest. Your total balance would be $106.09
Year 3: You earn $3.18 in interest. Your total balance would be $109.27
*APY rates are subject to change based on a number of factors. This rate is used as an example and may differ from the current rate in savings.
Estimating growth
We show your estimated interest for the month so you always know what you can expect to earn.
Taking money out
If you take money out of your savings, you'll still get the interest you've earned up until that point. For example, if you have $100 in savings and withdraw halfway through the month, you'll still be paid for 15 days of interest you earned.
Who isn’t eligible to earn interest
Sponsored and business accounts aren’t eligible to earn interest at this time. Additionally, you’re not eligible for interest if you’re subject to backup withholding.
In order to be eligible to earn interest, you must have a Cash App Card and be at least 18 years old.
Even if you’re not eligible for interest, you can still transfer money into savings, create goals, and save automatically with Round Ups or automatic paycheck transfers.
Why do interest rates change and how is the Federal Reserve involved?
The federal funds rate is the interest rate at which banks lend money to each other. It is set by a Federal Reserve committee and serves as a benchmark for interest rates across the country, including savings rates.
When the Federal Reserve (the central bank of the U.S.) changes this rate, it influences borrowing costs for consumers and businesses. Essentially, it's a tool the Fed uses to help control inflation and support economic growth.
As we adjust our rates, we aim to offer industry-leading rates.