Cash App has announced a new offer for its Cash App Savings customers, matching Apple’s recent move to boost the interest rate for its Apple Card Savings Account to 4.5% APY (annual percentage yield). However, there are some specific conditions attached to this offer.
Key Takeaway
Cash App is now offering a 4.5% APY for its Cash App Savings customers, contingent on a $300 or more direct deposit per month, a Cash App Card, a personal account, and a minimum age of 18. This move follows Apple’s recent increase in its Apple Card Savings Account rate to 4.5% and reflects the competitive dynamics in the savings market.
Direct Deposit Requirement
In order to qualify for the 4.5% APY, customers will need to direct deposit $300 or more per month in paychecks. This condition may pose a challenge for those who do not use Cash App as their primary banking service but utilize it for peer-to-peer payments or business transactions.
Additional Conditions
Customers must also have a Cash App Card, maintain a personal (not business) account, and be at least 18 years old to be eligible for the 4.5% rate. Without direct deposit, the APY remains at 1.5%.
Competitive Perks
Aside from the high APY, Cash App offers other benefits such as overdraft coverage of up to $50 on Cash App Card purchases, free ATM withdrawals in-network, one free withdrawal per month at any ATM, and access to customer support from within the app.
Market Impact
This move by Cash App reflects the competitive nature of the savings market, with Apple’s entry prompting other financial institutions to raise their rates. It also highlights how consumers are benefiting from the Federal Reserve’s efforts to combat inflation, as banks respond to changes in the federal funds rate.
