What is Cash App's savings interest rate?

The Cash App Savings interest rate is influenced by the Federal Reserve Committee (the Fed), which sets the federal funds rate—a benchmark for interest rates nationwide. When the Fed changes this rate, it can affect the interest rates that banks and financial platforms like Cash App can offer.

Currently, Cash App offers two savings rates for personal accounts:

• type: embedded-entry-inline id: 6yoilKnBIv6v38Dl8Z3F2Z APY: High-yield rate (Cash App Green required)¹
• type: embedded-entry-inline id: 612zkoqCYVHzsfk9y1oXL5 APY: Base rate (Cash App Card required)¹

Be aware that Cash App Business accounts aren't eligible to earn interest at this time. If this policy changes in the future, this article will be updated.

Understanding how your money grows through APY and compounding interest is key to making the most of your savings. These are the basics in simple terms.

What is APY?

APY, or Annual Percentage Yield, is the total amount of interest you'll earn on your money over a year, including the effect of compounding. Put simply: even your interest earns interest.

How your money grows: accrual vs. compounding

To understand how your money grows, two concepts work together:

• Accruing interest means your balance earns a little bit of interest every day based on your interest rate.
• Compounding interest is when your bank actually adds that daily interest to your principal amount, usually on a monthly basis.
• When accrual and compounding work together, your money grows faster over time. You earn interest not just on your original savings, but also on the interest that gets added to your account.

How Cash App puts your interest to work

Your interest accrues daily and compounds monthly. This means we calculate the interest you've earned every single day based on your current savings balance. Then, at the end of each month, we deposit all that earned interest directly into your savings. The next month, you start earning interest on your original money plus the interest you were just paid.

With this daily accrual and monthly compounding system, you're maximizing your earnings throughout the year.

A quick example

If you start with $1,000 at the high-yield rate of 3.25% APY:

• After one year: You'd have approximately $1,032.50
• After two years: You'd have approximately $1,065 

Notice how you earned a little more in year two? That’s because you earned interest on both your original savings and your previous year's interest. The power of compounding means your money grows faster the longer you save.

Earning interest on Cash App requires both a Cash App Card and a personal account. Without a card, you can't access the savings feature. Here’s how to get your Cash App Card. Once you have your card, follow the steps below to unlock the high interest savings. 

Step 1: Get your Cash App Card

With a Cash App Card, you earn 1.5% APY on your savings.

Step 2: Get Cash App Green

With Cash App Green, you’ll earn a 3.25% high-yield rate.¹ You only need to meet one of these requirements each month to become eligible for the highest savings rate.

Option 1: Direct deposit

Receive $300 or more in qualifying direct deposits each month.² This could be your paycheck, government benefits, or other regular income deposited directly into your Cash App account.

Option 2: Spend

Spend $500 or more in qualifying purchases using your Cash App Card each month.² That means using your card for groceries, gas, and other everyday purchases will unlock access to a high-yield rate.

Step 3 (for teens): Sponsored accounts

Sponsored accounts for kids ages 13-17 are eligible for the 3.25% APY with sponsor approval⁴, allowing teens to start building good savings habits with a competitive rate.

No hidden fees, no minimums on savings

A high interest rate doesn't matter if fees eat into your earnings. Cash App has no monthly hidden fees, no minimum balance requirements, and you can start saving with as little as $1. Your balance earns interest from day one, without worrying about maintaining a certain amount to avoid charges.

Total flexibility: move money in and out

You can transfer money between your Cash App Savings and your Cash balance instantly, anytime you want. There are no limits on how many times you can transfer, and there are no penalties for accessing your money.

You keep the interest you've already earned, even if you withdraw money before the end of the month. Because interest accrues daily, you'll still get paid the interest you've already earned for every day your money was in the account, even if you withdraw some of it.

Save without thinking about it

Cash App makes saving automatic with smart features. Save your spare change from purchases with Round Ups, or automatically set aside a portion of each paycheck so you can grow your savings without even thinking about it.

FDIC insurance for up to $250,000³

Cash App is a financial services platform and works with partner banks to provide some services. Your savings balance is held in an account at Wells Fargo Bank, N.A., Member FDIC, which means your money is eligible for pass-through FDIC insurance protection up to applicable limits.