Comprehensive Guide to Cash App’s Banking Partners

June 27, 2024

Cash App, developed by Block, Inc., is a widely-used mobile payment service that allows users to send and receive money using a smartphone app. This comprehensive guide will delve into the details of Cash App’s banking partners, Lincoln Savings Bank, and Sutton Bank, and provide answers to related questions.

Both Lincoln Savings Bank and Sutton Bank are FDIC-insured, meaning funds in your Cash App account are protected up to $250,000. Let’s explore how Cash App collaborates with these banks and what services they offer to enhance the user experience.

Key Highlights

Cash App Partners: Lincoln Savings Bank and Sutton Bank for banking services.
FDIC Insurance: Both banks are FDIC-insured, securing funds up to $250,000.
Direct Deposits: Lincoln Savings Bank has been handling direct deposits for Cash App since 2017.
Cash Card Services: Sutton Bank offers services for its prepaid debit card, known as the Cash Card.
Plaid Integration: Cash App partners with Lincoln Savings Bank through Plaid integration, ensuring seamless and secure connections between users’ financial accounts and third-party apps for enhanced convenience and safety.

What Banks Does Cash App Use?

Cash App utilizes two primary banking partners to provide traditional banking services to its users: Lincoln Savings Bank and Sutton Bank. These banks ensure that customer accounts are insured up to $250,000, thanks to their FDIC membership. Below, we will delve into the details of each bank.

Sutton Bank

Sutton Bank, nestled in Sutton, Ohio, is a hometown bank dedicated to meeting the financial needs of residents, families, and businesses in its community and nearby regions.

Key Information about Sutton Bank

Full Bank Name: Sutton Bank
Routing Number: 041215663
Account Type: Checking
Number of Branches: 8
Total Assets: Approximately $2.25 billion
Phone: (800) 422-3641
Website: Sutton Bank

Lincoln Savings Bank

Lincoln Savings Bank is a trusted financial institution that has been serving customers since 1902. Operating in Iowa for over a century, it provides various traditional banking services, including deposit accounts, lending services, online banking, and business banking.

Key Information about Lincoln Savings Bank

Full Bank Name: Lincoln Savings Bank
Address: 508 Main Street, Reinbeck, IA 50669
Routing Number: 073905527
Account Type: Checking
Number of Branches: 16
Total Assets: Approximately $1.89 billion
Phone: (800) 588-7551
Website: Lincoln Savings Bank

Cash App and FDIC Insurance

One of the key advantages of using Cash App is the FDIC insurance provided by its banking partners. Both Lincoln Savings Bank and Sutton Bank are members of the Federal Deposit Insurance Corporation (FDIC). This means that the funds in your account are insured up to $250,000, offering a high level of security and peace of mind to users.

Importance of FDIC Insurance

FDIC insurance is crucial because it protects your deposits in case the bank fails. This insurance protects all your money in savings, checking, and CDs. By partnering with FDIC-insured banks, it ensures that its users’ funds are safeguarded up to the legal limit.

What Bank is Cash App on Plaid?

Cash App partners with Lincoln Savings Bank for Plaid integration. Plaid connects financial accounts to third-party apps, letting users share their financial data securely without needing to provide their login details. This makes using these apps both easier and safer.

Benefits of Plaid Integration

Plaid integration offers several benefits to its users:

Enhanced Security: Users can connect their financial accounts to third-party apps without sharing their login details.
Convenience: It simplifies the process of linking accounts, making it easier for users to manage their finances across different platforms.
Efficiency: Streamlines the process of accessing financial data, saving users time and effort.

Direct Deposits with Cash App

Since 2017, Lincoln Savings Bank has been processing direct deposits for Cash App. This partnership allows users to receive their paychecks directly into their Cash App accounts, providing a seamless and efficient way to manage their finances.

How to Set Up Direct Deposits?

Setting up direct deposits with Cash App is straightforward:

Firstly open the Cash App on your phone.
Access Banking Tab: Select the “Banking” tab on the main screen.
Select Direct Deposit: Click on “Direct Deposit” and follow the steps to get your account and routing numbers.
Share Information: Provide your App details, including account and routing numbers, to your employer or payroll company.

Once set up, your paycheck will be deposited directly into your Cash App account, giving you immediate access to your funds.

Cash App Cash Card Services

The Cash App Cash Card works like a debit card linked to your Cash App funds, letting you purchase items directly. Sutton Bank provides services related to the Cash Card, ensuring that users have access to a convenient and secure payment method.

Benefits of the Cash Card

Ease of Use: The Cash Card can be used anywhere that accepts Visa, making it a versatile payment option.
Instant Access: Users can instantly access their balance for purchases.
Customizable: The Cash Card can be customized with a unique signature or design, adding a personal touch.
Boosts: Users can apply Boosts to their Cash Card, offering instant discounts at select retailers and restaurants.

Additional Services Offered by Cash App

In addition to sending and receiving money, direct deposits, and the Cash Card, Cash App offers several other services to enhance the user experience.

Bitcoin and Cryptocurrency

With Cash App, you can easily purchase, sell, and keep Bitcoin safe. This feature allows users to diversify their financial activities and invest in cryptocurrency directly through the app.

How to Buy Bitcoin on Cash App?

Open Cash App: Open up the app on your mobile.
Access Bitcoin Tab: Navigate to the main screen and tap on ‘Bitcoin’.
Select Buy: To buy, just tap ‘Purchase’ and input the quantity you wish to buy.
Confirm Purchase: Confirm your purchase and complete the transaction.

Investing in Stocks

With Cash App, users can also invest in stocks. This feature makes it easy for users to start investing with small amounts of money and build their portfolios over time.

Stock Investing Through Cash App

Launch Cash App: Get started by opening the app on your phone.
Access Investing Tab: Tap on the “Investing” tab on the home screen.
Select Stocks: Browse available stocks and select the one you want to invest in.
Enter Amount: Choose how much you want to invest and finalize your purchase.

Boosts and Rewards

It also offers a Boost program, which provides instant discounts at select retailers and restaurants. Users have the option to apply Boosts on their Cash Card transactions, helping them save money whenever they make everyday purchases.

How to Use Boosts?

Launch Cash App: Get started by opening the app on your phone.
Access Cash Card Tab: To use your Cash Card, simply tap ‘Cash Card’ on the main screen.
Select Boosts: Discover the Boosts on offer and choose the one that fits you perfectly.
Activate Boost: Activate the Boost and use your Cash Card to purchase at the selected retailer or restaurant.

Conclusion

Cash App is a versatile financial services platform that offers a wide range of features to enhance the user experience. By partnering with FDIC-insured banks like Lincoln Savings Bank and Sutton Bank, Cash App ensures that users’ funds are secure and protected up to $250,000. From direct deposits and the Cash Card to stock and Bitcoin trading, Cash App provides a comprehensive suite of services to meet the diverse needs of its users.

Whether you are looking to send and receive money, manage your paycheck, invest in cryptocurrency or stocks, or enjoy instant discounts with Boosts, Cash App has you covered. The integration with Plaid further enhances security and convenience, making it easier for users to connect their financial accounts to third-party apps and services.

As Cash App continues to grow and evolve, its partnerships with Lincoln Savings Bank and Sutton Bank remain crucial in providing reliable and secure banking services. With a focus on user convenience and financial security, Cash App stands out as a leading mobile payment service in today’s digital age.