Square launched Square High Yield Savings, a tier that pays 3.50% APY to Square sellers who keep a daily balance of $10K or more in their Square Savings account, applied automatically to the entire balance with no separate application. The rate runs more than 8x the national average, and it is part of Block’s push to grow low-cost deposits through its banking arm so it can fund seller lending more cheaply, positioning Square Savings as the financial engine of Block’s seller ecosystem. The account carries no minimum or monthly fees and FDIC coverage up to $2.5M through a deposit-sweep program, and Square plans to add an automated folder that sweeps collected sales tax into its own bucket using a seller’s existing tax settings.
