Money / Finance
Written by Kristopher Kane
Edited by Emily Gadd
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GOBankingRates Score
Cash App
4.8
SCORE
GOBankingRates Best Banks 2023 scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks.
Quick Take: Cash App offers a fast and convenient solution for money transfers, purchases, banking¹and even investments directly from a user's smartphone. With its peer-to-peer mobile payment service, Cash App can be a valuable addition to your fiscal toolkit if you're interested in a flexible way to handle your finances.
- Fees
4.8
- Reputation
4.8
- Ease of Use
4.9
- Security
4.8
How did we calculate this?
Pros
- Transfer money instantly to anyone via an email address, phone number or in-app $Cashtag.
- Users have the option to customize the design of their physical Cash Card² (fees may apply).
- Users can get instant access to any direct deposit funds, up to $50,000 in a 24-hour time frame.
- Cash App customers can invest in stocks, ETFs and purchase Bitcoin directly from the app.
Cons
- Cash Cards are subject to daily, weekly and monthly transaction limits, though these limits are quite high.
- Only Cash Card accounts are FDIC-insured³; Bitcoin and investment funds are uninsured.
- Cash Card ATM transactions may incur a $2.50 fee for each transaction in addition to fees imposed by out-of-network ATM operators.
- Cash App to Cash App payments cannot be canceled.
Cash App, developed by Square Inc., is a mobile-based peer-to-peer payment system that offers a range of financial services. With its user-friendly interface and convenient features, Cash App has gained significant popularity and a large user base since its launch.
Cash App provides users with various features and services, including money transfer, banking, a Cash Card debit card, investing and even Bitcoin integration. The app’s multi-functionality has contributed to its rising popularity among those seeking a convenient and streamlined mobile payment solution.
Keep reading for a look into the various aspects of Cash App, including an evaluation of its trustworthiness, its downsides and limitations, the information you should know about its refund policy and a look at the pros and cons of using Cash App as a financial tool to help you determine if Cash App is the right fit for your financial needs.
Cash App Features
Based on its features and benefits–and taking into account its limitations and downsides–Cash App received an impressive GOBankingRates rating of 4.8 out of 5. Here’s a closer look at the factors involved in the app’s rating.
Savings
Cash App Savings offers a 4.50% interest rate on deposited cash–which is competitive with most high-yield savings accounts on the market. But Cash App isn’t a bank–instead it connects to third-party trusted banks for support. Accounts are FDIC-insured through partner bank Wells Fargo and Wells Fargo also pays the 4.50% interest rate.
To qualify for the 4.50% interest rate, you must:
- Be 18 years old
- Have a Cash App debit card
- Set up direct deposit of at least $300 per month into Cash App
Investing
Cash App allows users to invest in stocks, ETFs, and even crypto with minimal fees and an easy-to-use trading interface. There are over 1,800 stocks and ETFs available for trading–though some smaller company stocks are not available. There are no commissions on stock and ETF trades–and fractional shares allow you to invest as little as $1.
For crypto trading, Cash App only offers access to Bitcoin. Fees are high for buying and selling Bitcoin on the App, especially for lower amounts. Here’s what Cash App charges for Bitcoin trading:
| Total Exchange Amount | Percentage Fee |
|---|---|
| $0 – $9.99 | 3% |
| $10 – $100 | 2.25% |
| $100.01 – $200 | 2% |
| $200.01 – $1000 | 1.75% |
| $1000.01 – $2000 | 1.5% |
| $2000.01 – $3000 | 1.25% |
| $3000.01 – $5000 | 1% |
| >$5,000.01 | 0.75% |
Cash App may also charge a spread fee up to 1% of the transaction.
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Fees
Cash App is known for being a fee-free way to transfer money to family and friends. But there are several other features that may charge fees.
Cash App Cash Cards can be used at any ATM, however, each transaction is subject to a fee of $2.50 in addition to any out-of-network fees charged by the ATM operator.
Customers who regularly receive a minimum of $300 via direct deposit into their Cash App account each month will have in-network ATM fees waived and will be given one free out-of-network ATM transaction each month. Once you’ve unlocked free ATM withdrawals, each additional qualifying deposit extends the time period for fee ATM transactions by a further 31 days.
Opening a Cash App Investing account is completely free, with no requirement for a minimum balance and no commission fees. While Cash App Investing doesn’t charge fees for trades, you’ll still be subjected to regulatory and government fees imposed by exchanges or entities such as the Securities and Exchange Commission. All fees are disclosed prior to trade confirmations and are clearly listed in the trade confirmation message.
Reputation
Generally speaking, Cash App can be considered a reliable and trustworthy company. It operates a legitimate payment processing business and has established a secure transaction system. While security breach incidents have occurred in the past, Cash App has taken steps to correct any security vulnerabilities and has generally maintained a solid track record. If you follow best practices to keep your account secure, avoid scams and safeguard your personal information, you can confidently use Cash App without worry.
According to Cash App’s fourth-quarter 2023 shareholder letter, Cash App’s developer, Block, Inc., made $2.03 billion in gross profit, an increase of 22% since the same quarter in the previous year. Cash App itself generated a gross profit of $1.18 billion.
Ease of Use
It’s easy to send and receive payments in Cash App. To send a payment:
- Open Cash App.
- Enter the amount to send.
- Tap “Pay.”
- Enter the recipient’s $Cashtag, phone number or email address.
- Enter what the payment is for.
- Tap “Pay.”
- Confirm your transaction by confirming your Cash PIN or using the Touch ID option.
Cash App customers can see their received payments in their activity feed. To review a received payment:
- On the home screen, tap the Activity tab.
- Select the payment to review.
- Decide whether to transfer the payment to a bank account or to the account holder’s Cash App account balance.
Security
Cash App employs state-of-the-art encryption and advanced fraud detection technology to safeguard your personal information and funds. Regardless of whether you’re using a public or private Wi-Fi connection or mobile data service, any data you provide is securely encrypted. Because Cash App shares the same parent company as Square, it uses the same robust fraud detection infrastructure and safety protocols that successfully monitor millions of Square point-of-sale transactions daily.
Cash App also complies with the highest level of security standards, known as the PCI Data Security Standard, or PCI-DSS, Level 1, which further demonstrates their commitment to keeping your data–and your funds–secure.
Customers can take some simple precautions to keep the money in their Cash App account safe. To have a more secure Cash App experience, users should:
- Completely sign out of their Cash App account if they sign in on a device that’s different from their own.
- Create a passcode for their mobile device and enable multi-factor authentication for their email account.
- Enable the Security Lock setting, requiring a PIN or Touch ID to make payments from their Cash App account.
What Is Cash App Banking?
Cash App banking is a cash account that offers 4.5% interest on deposits–as well as a fully-customizable VISA debit card (provided by Sutton Bank). You can make purchases with your Cash App balance using the debit card, direct deposit your paychecks, and there are no fees to open the account.
How Cash App Banking Works
Cash App banking is built right into your Cash App mobile app–you can sign up for free and order a free customized VISA debit card. When you sign up for Cash App banking, you also have the option of setting aside money in the Cash App Savings account–which offers up to 4.50% interest on deposits (after meeting requirements).
Your Cash App VISA debit card is a prepaid card issued by Sutton Bank–and you can use your Cash App balance to make purchases. And while there are ATM fees assessed to access actual cash–you can get your first ATM fee reimbursed each month by setting up Direct Deposit to your account (minimum $300 monthly deposit).
Cash app also offers access to your paycheck up to two days early when you set up direct deposit. Mobile deposit is also available–and you can even deposit cash at supported retailers.
Cash App Banking Features
Cash App Banking isn’t a full-service bank–but for tech-savvy users, it may be more than adequate. Here’s a few features available with Cash App Banking:
- Direct deposit. Cash App banking allows you to directly deposit your paychecks–and even access funds up to two days early.
- High-yield savings. The linked Cash App savings account is currently paying 1.50% interest–but you can boost that to 4.50% interest by setting up direct deposit, ordering a Cash App card, and depositing at least $300 per month to your account.
- Recurring deposits. You can set up recurring deposits to your Cash App balance from a linked bank account.
- Instant transfers. Cash App banking offers instant transfers into your account from a linked bank.
- No overdraft fees. Cash App doesn’t charge overdraft fees–and if you set up direct deposit and deposit $300 or more per month–you get up to $50 in free overdraft coverage.
Cash App Banking Fees and Minimum Deposits
There is no minimum deposit for Cash App banking required to open an account–and Cash App doesn’t charge any account fees. But there is a rather steep ATM fee of $2.50 charged if you use an out-of-network ATM–plus the ATM operator charges. You can get one ATM transaction per month forgiven by setting up direct deposit and depositing at least $300 per month.
There are no fees for instant deposits into your Cash App banking account–but you’ll pay for instant withdrawals. The current fee for instant transfer withdrawals ranges from 0.5% to 1.75% fee (with a minimum fee of $0.25).
How Cash App Stands Out
In addition to offering peer-to-peer payment service, you can use Cash App to pay for brick-and-mortar purchases at select merchants, buy and sell stocks, and even trade Bitcoin, all straight from the app. Plus you can do most banking functions with the Cash App banking feature–including direct deposit, debit card purchases, and mobile deposit. It essentially gives you a full suite of money management tools all in the palm of your hand.
Comparable Cash App Options
Mobile payment apps that let users transfer money directly, buy cryptocurrency and even provide investment options have become increasingly popular, with no shortage of choices. Here’s a look at the speeds, fees and features of four of the most popular: CashApp, Venmo, PayPal and Zelle.
Cash App
| Cash App | |
|---|---|
| Transaction speeds | 1-3 business days with no charge, instant transfers available (for a fee) |
| Fees | Instant transfers are charged a 0.5% to 1.75% fee, ATM withdrawals are subject to a fee of $2.50, and all Bitcoin transactions may be charged a variable fee, which will appear prior to transaction confirmation |
| Payment methods | -Cash App balance-Linked bank account-Credit or debit card |
| Notable features | -Income tax filing-Bitcoin purchases-Stock investing |
Venmo
| Venmo | |
|---|---|
| Transaction speeds | 1-3 business days with no charge, instant transfers available (for a fee) |
| Fees | Instant transfers are charged a 1.75% fee, funds sent via credit card are subject to a 3% fee, ATM withdrawals are subject to a $2.50 fee if outside of the network, and cryptocurrency transactions are charged a fee based on market conditions disclosed at the time of transaction |
| Payment methods | -Venmo balance-Linked bank account-Credit or debit card-American Express account |
| Notable features | -Purchasing with Venmo credit card-Buying cryptocurrency |
PayPal
| PayPal | |
|---|---|
| Transaction speeds | 1-3 business days with no charge, instant transfers available (for a fee) |
| Fees | – Instant transfers charged a 1.75% fee-$0 to send from your PayPal balance or your bank account -Using a debit or credit card: 2.90%, plus a fixed fee-From Amex Send™ Account: $0 -Buying or selling crypto: $0.49-$2.49, depending on the purchase amount; or between 1.80-1.50%, for purchases or sales above $200.01 |
| Payment methods | -PayPal balance-Linked bank account-Credit or debit card |
| Notable features | -Wide range of services-$10 referral bonus |
Zelle
| Zelle | |
|---|---|
| Transaction speeds | Instantly for existing accounts, new accounts may see a slight delay |
| Fees | Banks or credit unions may charge fees |
| Payment methods | -Linked bank account-Credit or debit card |
| Notable features | -No additional security details required-Instant payments |
How To Apply
Signing up for a Cash App account is quick and easy.
Create an Account
- Download the free app from Google Play or the Apple App Store or scan the QR code from the website.
- Enter your name, ZIP code, email address and phone number.
- Choose your $Cashtag to send and receive payments. $Cashtags must include at least one letter and can be no longer than 20 characters.
- Link your bank account to open a Cash App account and access most of the app’s features.
A Cash App Cash Card is a Visa debit card that customers use to pay for products and services in stores and online with money in their Cash App account. Users simply add the Cash Card to an Apple Pay or Google Pay account to begin making purchases.
To apply for a Cash Card, users will need to verify their account using their full name, date of birth, mailing address and the last four digits of their Social Security number. Additional information may be requested to verify an account.
Who Cash App Is Best For
Cash App is a great option if you want to easily send and receive money, shop, trade stocks or Bitcoin, access paychecks early, handle your taxes or even provide your teenager their own finances, all from one easy-to-use, intuitive app.
Final Take
Cash App is a proven, reliable choice for anyone looking to send and receive money, make convenient bank transfers, purchase Bitcoin and even pursue investment options, all through a single account with one linked Cash Card debit card. Cash App is backed by the same technology that handles all Square transactions, underscoring the app’s safety and security.
Users can send or receive up to $1,000 per day without verifying your identity–but Cash App increases those limits for verified users. [15] If you’re looking for a payment app that offers additional features such as tax filing, investing options and the ability to customize a Cash Card debit card, Cash App may be just what you’re looking for.
Important Tax Requirements To Be Aware Of
The American Rescue Plan Act of 2021 changed the minimum reporting threshold for certain business transactions. Initially, the IRS had intended to require the customers of services like Cash App’s Cash for Business to report payments for goods and services on Form 1099-K if the total transactions reached $600 or more in a year, starting from January 2022. But this requirement has been delayed twice–with the new reporting requirement $5,000 in business income phasing in for 2024.
For now, if you have a Cash App Cash for Business account, received more than $20,000 and participated in over 200 business transactions within the previous calendar year, you’ll receive a Form 1099-K from Cash App, which must be reported to the IRS. Be aware that individual states may have lower thresholds for reporting.
Jacob Wade, Kathy Evans and Amber Barkley contributed to the reporting for this article.
1Cash App is a financial platform, not a bank. Banking services provided by Cash App’s bank partner(s).
2Prepaid debit cards issued by Sutton Bank.
3Balance is FDIC-insured through Wells Fargo Bank, N.A., Member FDIC for up to $250,000 per person.
Editorial Note: This content is not provided by Cash App. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Cash App.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
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