SALT LAKE CITY–Square Financial Services (SFS), a wholly owned subsidiary of Block, has introduced a new high-yield savings option that will provide eligible Square sellers with a 3.50% annual percentage yield (APY) on funds held in their Square Savings, according to a statement from the company.
Under the new Square High Yield Savings program, sellers who maintain a daily balance of at least $10,000 in their Square Savings account will automatically qualify for the higher rate, with no additional enrollment or action required, SFS said.
According to the company, the 3.50% APY applies to the account’s entire balance and is calculated daily. The rate is subject to change.
‘Additional Value’
SFS said the new offering is designed to provide additional value to Square sellers while supporting the company’s efforts to expand its deposit base and lower funding costs for its lending operations.
The bank provides lending products to both Square sellers and users of the company’s Cash App.
“Square sellers are business owners first, but they’re also savers, planners and investors in their own futures,” SFS CEO Richard Rosenthal said in the statement. “This rate reflects our confidence in the Square seller base as a source of stable, long-term deposits — and our commitment to returning real value to the small businesses that make that model work.”
Part of Broader Suite
Square launched its Square Savings product in 2021 as part of a broader suite of financial services aimed at helping small businesses better manage cash flow and automate savings.
In its statement, SFS said Square Savings has provided sellers with an integrated way to set aside funds from the same platform they use to accept payments, manage inventory and oversee staffing operations. The company said the product has generated strong seller satisfaction while helping it build a stable, low-cost deposit base.
The launch comes as Block continues to report growth across its seller and consumer ecosystems. The company recently said it is pursuing initiatives designed to strengthen connections between merchants and consumers, including local loyalty and discovery programs, while expanding its seller services offerings. Company executives have also indicated they expect continued momentum from efforts to grow and deepen seller relationships.
