This is a question that a lot of people seem to be asking lately. Cash App, which is owned by Square, calls itself a “money app” and doesn’t advertise itself as either a checking or savings account. But does that mean that it actually is one or the other?
In this blog post, we’ll explore what Cash App is and what it can be used for so that you can decide if it’s right for you. We’ll also take a look at the pros and cons of using Cash App compared to traditional checking and savings accounts.
Is Cash App a Checking or Savings Account?
Cash App is not a checking or savings account, but you can use it to deposit and withdraw money from your checking or savings account. When you set up your Cash App account, you will need to link a bank account. You can then use the Cash App to deposit or withdraw money from that account.
You can also use the Cash App to make payments using your linked bank account. To do this, you will need to enter the email address or phone number of the person you want to pay and then select either the ‘Send’ or ‘Request’ button. This will send a payment request to the other person, who will then need to accept the request in order to receive the money.
The Cash App also allows you to add money to your account balance using a debit card. To do this, you will need to enter your debit card information and then select the ‘Add Money’ button. This will add the funds to your Cash App balance, which you can then use to make payments or withdrawals.
One of the benefits of using Cash App is that it offers a higher level of security than traditional banks. Cash App uses encryption to protect your information and requires you to set up a PIN or fingerprint ID in order to access your account. Additionally, Cash App accounts are FDIC insured up to $250,000.
While Cash App doesn’t technically meet the definition of a checking or savings account, it does offer many of the same features. And depending on your needs, it may be a better option for you than a traditional bank account.
Pros and Cons of Using Cash App
There are both pros and cons to using Cash App. Let’s take a look at some of the key advantages and disadvantages:
- Offers a higher level of security than traditional banks.
- FDIC insured up to $250,000.
- Allows you to deposit and withdraw money from your linked bank account.
- Allows you to make payments using your linked bank account or debit card.
- Does not offer all of the features of a traditional checking or savings account.
- It may not be available in all areas.
So, is Cash App a checking or savings account? The answer is no. But it can be a useful tool for managing your money. Just be sure to weigh the pros and cons before you decide if it’s right for you.