Is Cash App A Checking Or Savings Account? Explained (2024)

Cash App has gained popularity as a convenient mobile payment platform that allows users to send and receive money, make purchases, and even invest in stocks and Bitcoin. However, it's important to understand that Cash App is primarily designed as a peer-to-peer payment service rather than a traditional banking platform. Let's delve into the details to clarify whether Cash App functions as a checking or savings account.

Is Cash App A Checking Or Savings Account?

Cash App is a peer-to-peer payment service that can act both as a checking or savings account.

For the benefit of doubts, let's see how Cash App works as a checking and savings account.

Cash App as a Checking Account:

1. Direct Deposit: Cash App enables users to set up direct deposit, allowing them to receive paychecks, tax returns, and other deposits directly into their Cash App balance.
2. Account and Routing Numbers: Users can access their Cash App account and routing numbers, which can be used to deposit paychecks, pay bills, and set up automatic deposits.
3. Cash App Balance: When you receive funds through Cash App, they are added to your Cash App balance, which can be used for transactions, and purchases, or transferred to your linked bank account.

Cash App as a Savings Account:

1. Savings Feature: Cash App introduced a feature called Cash App Savings, which allows users to earn interest on their Cash App balance.
2. No-Fee Savings Account: Cash App Savings offers a no-fee savings account option, providing users with the opportunity to grow their funds.
3. Fractional Shares: Cash App Investing, a subsidiary of Cash App, offers fractional shares investing, allowing users to invest in stocks and ETFs with as little as $1.

Conclusion

Cash App is primarily a peer-to-peer payment service rather than a traditional checking or savings account. While it allows users to receive direct deposits, access account and routing numbers, and maintain a Cash App balance similar to a checking account, it does not offer the full range of features and services typically associated with a traditional bank account.

However, Cash App does provide a savings feature called Cash App Savings, which allows users to earn interest on their Cash App balance. It's important to note that the financial services offered by Cash App may vary and it's always advisable to review the latest information and terms provided by Cash App to understand the specific features and limitations of their platform.