Yeah, we all know Cash App is a payment service that allows users to send and receive money safely and conveniently.
But there's this question that not every user will bother asking. Is Cash App a checking or savings account?
If you're asking yourself that question, it means you've decided to know how Cash App manages your finances.
Of course, Cash App is not a bank, but it offers similar services to banking institutions, including money transfer services, a debit card called the Cash Card, direct deposits, and even allows you to store funds in a virtual account.
If you're to ask me, I'll say it's a convenient alternative to banks. In fact, I can back that up with statistics that show that 82% of consumers use payment services such as Cash App for their financial needs.
If you're wondering whether Cash App is a checking or savings account, you've come to the right place.
In this article, we'll be seeing whether the financial account you have with Cash App is a checking or a savings account.
Table of Contents
Is Cash App A Checking Or Savings Account?
Sincerely speaking, this question has two answers. Cash App is both a checking and a savings account.
Let me tell you why.
Cash App offers the same services that a traditional bank's checking and savings account should offer. It allows you to transfer money, receive direct deposits from your employer, allows you to store funds, and offers a debit card that lets you use your account balance in a more flexible way.
If we're to make a breakdown of these services, you'll see some match features offered by checking accounts while others match services offered by a savings account.
How Is Cash App A Checking Account?
Normally, the Cash App account we have is definitely more of a checking account.
Why? Well, because most of the features it offers are those of a checking account.
Cash App is a checking account because:
- It allows you to transfer money.
- It allows you to receive direct deposits from your employer.
- It offers a debit card (the Cash Card) that you can use to access your account balance in a flexible manner.
How Is Cash App A Savings Account?
Your Cash App account is also a savings account since it offers services that come with a traditional savings account you'll have at any bank.
These features/services include:
- A virtual (savings) account that lets you store funds.
- A debit card that lets you access the stored funds whenever the need arises.
How Does Cash App Savings Work?
Cash App savings is a place in your account where you can save your money with Cash App. It does not come with a different account number from that of your Cash App account number. It's more like a folder in your account that stores money.
What's even great with Cash App savings is that you can set your goals for saving money.
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.
Since we're talking of a savings account, it should allow you to add money safely and without hassle. Thankfully, Cash App lets you add money to your Cash App savings either from your Cash App balance or from any other payment source.
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).
What's the aim of saving? For financial emergencies, of course. Cash App lets you send money from your Cash App savings back to your main Cash account if the need arises.
To do so:
- 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."
What Bank Is Cash App?
Cash App itself is not a bank, but it uses two banks to offer financial services you'll find in the app. The two banks Cash App uses are Lincoln Savings Bank and Sutton Bank.
However, Cash App partners with Lincoln Savings Bank to offer most of its financial services and also uses this same bank to connect with Plaid.
So if you're looking for Cash App's bank name and address, you should definitely refer to what you have with Lincoln Savings Bank.
What Kind Of Account Is Cash App Considered?
While Cash App offers both checking and savings account features, the main Cash account is considered more of a checking than a savings account.
However, if you're mostly using the Cash App savings account, then we can say it is more of savings than a checking account for you.
It just depends on how you want to use Cash App.
Can I Use Cash App As A Savings Account?
Yes, Cash App savings lets you use your Cash App account as a savings account. You'll typically be saving or storing funds in a separate place different from your main Cash App balance.
Is Cash Card A Savings Account?
No, the cash card is not a savings account and it is directly linked to your main Cash account.
Final Thoughts
Cash App is a popular payment service that offers a couple of financial services you should find convenient for your banking needs.
Cash App is both a checking and savings account since it allows you to do what a traditional checking and savings account should let you do.
But overall, Cash App is more of a checking account than a savings account since most of it is primarily designed as a peer-to-peer payment service that allows users to send and receive money.