No-fee savings account with a 4.50% APY on Cash App Banking.

The article lists APYs that are current as of publication, but they may change as the Fed rate fluctuates. CNBC Select will update as any changes are made public.

While Cash App is renowned for its money transfer capabilities, it has expanded its offerings to include traditional banking features such as a high-yield savings account (HYSA), VISA-branded debit card, and the ability to invest in stocks and buy and sell bitcoin.

CNBC Select evaluates Cash App's banking capabilities in comparison to other competitors.

How Cash App Banking works

Cash App does not charge any fees for downloading or using its basic services. Users can create an account without a bank account or credit check, and there are no minimum balance requirements after the initial $1 deposit (except for the 4.50% APY).

You can add money to your Cash App balance through direct deposit or by depositing cash at participating retailers such as Walmart, Walgreens, 7-Eleven, and Family Dollar. Like 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.

Through Wells Fargo Bank, Cash App deposits are insured by the FDIC for up to $250,000 per individual.

Cash App Banking APY

To open a Cash App savings account, you must be 18 or older, have a Cash App personal account and a Cash App Card. The account has a $1 opening deposit requirement and no monthly fees.

Cash App offers a savings account that can earn up to 4.50% APY, which is comparable to some of the best high-yield savings accounts. However, to obtain the higher APY, you must set up a monthly direct deposit of at least $300. If you don't meet this requirement, the savings account will earn a base rate of 1.50% APY.

If you already use Cash App for payment transfers and ATM access, a savings account is a great addition. If you're looking for a high yield without other features, these HYSAs offer APYs above 5.00% and don't require monthly deposits.

Cash App Banking features

Beyond payment transfers, Cash App now provides a range of banking services.

Savings account

To increase the standard Cash App Savings APY of 1.50% to 4.50%, you must set up a direct deposit of $300 or more in paychecks every month and unlock the additional 3%.

You can round up Cash App Card purchases to the nearest dollar and deposit the difference to your savings account, as well as set savings goals and assign an emoji to the objective you've selected.

Signing up for direct deposit on Cash App allows users to receive their paycheck up to two days early and have Cash App's ATM fees waived.

You can transfer unlimited amounts between your Cash App balance and savings without any fees or monthly limits, but you cannot withdraw cash directly from your Cash App savings account.

Debit card

The Cash App Card, a prepaid Visa debit card issued by Sutton Bank, is offered by Cash App, a mobile payment app. Unlike traditional checking accounts, it doesn't have monthly fees or minimum balance requirements.

After creating a Cash App account, you can instantly receive the Cash Card and utilize it for payments via Apple Pay or Google Pay. The Cash Card can be used online or in-store wherever Visa is accepted.

Cash Card holders can enjoy exclusive access to concert presales, special events, and limited-edition collections. They can also choose categories to earn cash back on, such as dining, coffee shops, and shopping. However, cardholders can only activate one offer at a time, and offers are subject to change.

ATM access

Withdrawals from ATMs and cash back at checkout can be made using the Cash App Card.

Customers who deposit at least $300 monthly receive unlimited in-network withdrawals and one free out-of-network withdrawal, while those without qualifying deposits or out-of-network ATM usage are charged a $2.50 fee plus any operator charges.

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 services do not charge monthly fees and only require a minimum balance of $1 to open an account (except for those who want to earn the 4.50% APY savings rate).

Customers who direct deposit at least $300 can receive up to $50 in overdraft coverage protection, with no overdraft fees.

Security features

Cash App employs standard security measures such as data encryption, security locks, identity verification, and fraud detection. Additionally, users have the option to enable Face ID. The app sends notifications about suspicious activity, including log-ins from new devices, as well as real-time transaction alerts.

Cash App Banking vs. Chime Banking

Chime, like Cash App, partners with Stride Bank, a traditional bank, to provide savings and checking accounts, debit cards, and credit cards.

Chime, like Cash App, does not charge monthly fees or overdraft fees for checking, and there is no minimum account balance requirement. Additionally, Chime offers a debit card with fee-free ATM access for customers who set up direct deposit.

Although Chime's savings account has a lower 2.00% APY, it does not require direct deposit to obtain the full yield.

Chime's credit-builder secured credit card stands out from Cash App because it doesn't require a credit check, has no minimum security deposit, annual fee, or interest.

If you're focused on maximizing your savings, Cash App is the better option. If you're building or repairing your credit, Chime might be the stronger choice.

Compare offers to find the best savings account

Bottom line

Cash App offers a unique banking experience for those who have difficulty obtaining a traditional bank account. The app has no fees and provides a free debit card that can be used anywhere Visa is accepted. However, to earn the 4.50% APY on Cash App Savings, you must set up a monthly direct deposit of at least $300.

Why trust CNBC Select?

Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions when it comes to their finances. Each of our personal finance reviews is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently, without any input from our commercial team or external third parties. We uphold the highest journalistic standards and ethics. For more information on how we select the best money transfer apps, please refer to our methodology.

Stay up to date with CNBC Select's comprehensive coverage of credit cards, banking, and money by following us on TikTok, Facebook, Instagram, and Twitter.