Square Savings FAQ
With Square Savings, you can set aside money from your daily Square sales, allowing you to focus on operating your business. Grow your business savings with our competitive APY, set aside money for quarterly taxes, or save up for a rainy day or business needs—all with your Square Savings account.
Whether you’re looking to meet a specific savings goal, create a rainy day fund, or simply streamline your finances, Square Savings has a number of benefits tailored to your business. We offer an annual percentage yield (APY) of 1.75% to help you make the most out of your savings. We also understand the need to access your funds quickly. With instant transfers between your Square balance and Square Savings account, you can instantly access your money when you need it.
When you sign up for Square Savings, you will provide information to allow verification of your identity, your business, certain business managers, and/or certain other owners of your business. If verification is not successful, or if you are unable to meet other requirements (such as a minimum age requirement), you may not be eligible to open an account.
Gathering this information is required by law before a new account can be created. During the Savings application process you will be asked some details about individuals involved who own or have significant responsibility to control, manage, or direct your business.
You can refer to your government issued SS-4 or your recent business tax returns to locate your legal business name and EIN.
A beneficial owner is someone who directly or indirectly owns 25% or more of your business. For example, Bob’s Donut Shop is owned 50% by Bob and 50% by Tasty Donuts, LLC. Tasty Donuts, LLC is owned 50% by Joe and 50% by Mary, both individuals. So, Joe and Mary indirectly each own 25% of Bob’s Donut Shop and would need to be identified in the signup process as beneficial owners. Bob directly owns 50% of Bob’s Donut Shop and would be listed as another beneficial owner.
Yes, we offer a Spanish translation of this website. Some or all documents, services, web pages and/or correspondence may be available only in English, such as monthly statements or email updates about your account. If you need a Spanish translation of your monthly statement, we can provide you with a template upon request.
Linking an external bank account
For maximum account security, we sometimes require additional verification when linking a new bank account to your savings account. In order for us to verify account ownership and proper use of the account being linked, you may be asked to log into your external bank account through a third party or to verify a test deposit to your account. Linking your bank account is secure. Rest assured that we never see your username or password.
If you are uncomfortable providing your Bank credentials, you can provide your account and routing numbers manually for verification.. If you choose to verify your account using this method, you will receive a one-time micro-deposit in the amount of $0.01 from Square into the account you wish to link. Then, using the 3 digit alphanumeric code in the description of the deposit you will be able to verify account ownership.
For maximum account security, we sometimes require additional verification when linking a new bank account to your savings account. In order for us to verify account ownership and proper use of the account being linked, you may be asked to log into your external bank account through a third party or to verify a test deposit to your account. Linking your bank account is secure. Rest assured that we never see your username or password.
Managing your Savings account
There is no minimum balance to open. However, there is a minimum balance of $10.00 per folder required to accrue interest at the daily periodic rate described above. Your Square Savings account earns interest on a per folder basis. So for each folder in Your Square Savings account you will accrue interest at the daily periodic rate described above on the daily balance in each folder where the daily balance in such folder is equal to or greater than $10.00. For the avoidance of doubt, in the case one of your folders in your Square Savings account has less than $10.00 on any given day, you will not earn any interest on the balance of such folder on such day.
Interest is calculated daily using the account balance at the end of each business day. The interest you have earned is then added to your account at the end of each month. Square Savings offers 1.75% APY as of October 10, 2022. The APY on your account is subject to change at any time.
Savings accounts are provided by Square Financial Services, Inc. Member FDIC. Accrue annual percentage yield (APY) of 1.75% per folder on folder balances over $10.00. APY subject to change, current as of 10/10/22. No minimum to open, no cost.
If you have earned $10 or more in interest income in your Square Savings accounts or if any income tax was withheld from your earned interest during a calendar year, you may receive a Form 1099-INT. Form 1099-INT for your Square Savings account will be available by January 31st and can be found in your online Square Dashboard under Account & Settings > Business > Tax Forms. If you have any additional tax questions, consult your tax advisor as Square is not able to provide tax guidance.
Yes, you can access and manage your account online 24/7. When transferring funds between your Savings account and your Square balance, you’ll be able to see the transaction happen instantly. When transferring your funds to an external bank, you can expect to see the money in your account within 1-2 business days. Check with your external bank if there are any bank policies or other factors that may affect the timing of these transfers.
You can find your routing and account numbers in the Settings of your Savings Dashboard under the Account details section.
There are currently no limits to the number of withdrawals or transfers you can make.
- You can check your transfer limits on your Square Savings dashboard.
- From your Square Dashboard, navigate to Balance.
- Click Savings “Total saved” and the settings button in the top right corner.
- You can view your Transfer Limits.
Your limits may increase with product usage, limits are reset on Sunday.
Numbers are for illustrative purposes only.
If you don’t recognize a transaction or suspect that there has been unauthorized activity on your Square Savings account, reach out to us as soon as possible. Check out our recomended security steps, including changing your password, requesting an account review, and ensuring the 2-step verification feature remains turned on.
To close your account, contact us and we will handle closing your account.
Note: Any pending transactions will need to be settled before your account can be fully closed.
Enrolling in automated savings on your Square Savings dashboard can help you automatically set savings aside. You can do it for a fixed percentage of every sale or you can set a target for each folder. If you set a target, then once your target is met, the automated savings will turn off.
Note: Automated savings are applied to gross card sales including tips and taxes paid by customers using a credit or debit card, ACH payments, and QR code payments made with Cash App.
Automated savings does not include Square payments made with cash, checks or gift cards.
Transferring funds to and from Savings
You can always instantly transfer funds between your savings folders. There are no fees or limits around how often or when you choose to move your money.
Yes. You can transfer money from your Square Checking account to your Savings account from your Savings Dashboard.
If you made a transfer by accident or you want to cancel a pending deposit that was initiated through your Savings dashboard, wait for the transaction to complete. Once the transaction is completed, you can initiate a new transaction to move the money back.
If you initiate a transfer from another institution and want to cancel it, contact us to let us know you want to place a stop payment at least three business days before the scheduled transfer date.
Keep in mind that when funds are debited from your Savings account from an external source (such as when you direct your external bank to pull funds from your Savings account), you must have the full amount you want to transfer out all within your general savings folder. This is the folder that is associated with your account and routing number. For example, let’s say you have a general savings folder with $50 and a custom folder with $100. If you want to transfer $100 out of your account, you’ll need to move $50 from your custom folder into your general savings folder before you can complete the transfer.
Deposit Sweep Program
The deposit sweep program for your Square Savings account distributes your funds among multiple FDIC-insured partner banks. This means that your Savings deposits will have an FDIC insurance coverage of up to $2.5 million.
You continue to have instant access to your savings whenever you need it and enjoy the added security of the deposit sweep program.
You can find more information in the Additional Savings Deposit Account Terms in “Addendum A: Square Financial Services, Inc. Deposit Sweep Program Disclosure.”
When the program is live we are working with the following FDIC-insured partner banks.
- Associated Bank NA
- Stifel Bank and Trust
- First Horizon Bank
- Bank of Hope
- Union Bank and Trust Company
- The Camden National Bank
- Farmers and Merchants Bank
- EagleBank
- Cadence Bank NA
- Bremer Bank NA
- Synovus Bank
- C3bank National Association
- Metro City Bank
- Third Coast Bank
- Legacy Bank & Trust Company
Last updated June 24, 2024.
Keep in mind that the participating partner banks may change at any time, so it is important to check back here periodically. Because we are not aware of deposits you may have outside of this Program, you are solely responsible for monitoring the total amount of all deposits you have at each partner bank for purposes of calculating your FDIC coverage and evaluating your participation in the Program.
If you want to exclude a specific partner bank from the deposit sweep program contact us.
Please be aware that opting out from multiple partner banks, may affect your total FDIC insurance coverage of $2.5 million.
Currently we cannot support customers that do not want to participate in the deposit sweep program and maintain a Square Savings account. If you want to opt out, you will need to contact us and we will close your account.
*Savings accounts are provided by Square Financial Services, Inc. Member FDIC. Accrue annual percentage yield (APY) of 1.75% per folder on folder balances over $10. APY subject to change, current as of 10/10/22. No minimum deposit is required to open an account. Accounts will not be charged monthly fees. Accounts are FDIC-insured up to $2,500,000. Pending balances are not subject to FDIC insurance.