What Is The Name Of The Cash App Bank, And What Is Its Address? (2024)

• 1Cash App partners with Lincoln Savings Bank and Sutton Bank to provide FDIC protection.
• 2Both banks are privately held community institutions with over $1 billion in assets.
• 3Cash App leverages Lincoln Savings Bank for direct deposits and Sutton Bank for debit cards.

As a pioneer of mobile peer-to-peer payments, Cash App makes sending and receiving money incredibly convenient. However, security is a significant concern for an app dealing with sensitive financial transactions. Thankfully, Cash App partners with established FDIC-insured banks to keep your money safe.

What is Cash App?

Launched in 2013 by payments firm Block (formerly Square), Cash App serves as a mobile-first platform for fast peer-to-peer transactions. Users can quickly request, send, or deposit funds using only a recipient’s username or phone number.

Beyond payments, Cash App also facilitates stock and Bitcoin trading. The app monetizes through transaction fees, membership subscriptions, and Bitcoin spread revenue.

The runaway success of Cash App stems from its intuitive mobile interface, free bank-to-bank transfers, promotional incentives, and seamless integration with other Block FinTech tools. However, even the most convenient fintech apps require bank integration on the back end.

Cash App’s Banking Partners

While Cash App handles the user-facing payments flow, federal regulations require actual banks to store deposited funds and execute transfers. As a non-bank fintech app, Cash App relies on two established banking players to provide financial plumbing – Lincoln Savings Bank and Sutton Bank.

Sutton Bank

The elder of the two partners, Sutton Bank, is a community lender headquartered in Attica, Ohio, focused on serving local customers since 1926. With eight branches, the bank holds approximately $1.2 Billion in assets.

Sutton Bank powers the Cash App debit card, enabling users to convert app balances into physical purchasing power. As Cash App expanded, the small bank faced growing scrutiny from regulators, questioning if controls kept pace with Block’s breakneck user growth.

Lincoln Savings Bank

Cash App welcomed Iowa-based Lincoln Savings Bank in 2017 as an additional banking partner to bolster oversight and smooth regulatory concerns. Founded in 1902, LSB holds $1.8 Billion in assets across 17 branches.

LSB now handles Cash App’s direct deposit functionality, and its status as a century-old institution helped ease regulator angst. The bank uses Plaid to connect external consumer bank accounts to the Cash App platform securely.

Both banking partners are Federal Deposit Insurance Corporation members, securing user cash balances up to $250,000.

FDIC Insurance Protects Cash App Customers

Arguably, the most crucial element Cash App’s banking partners provide is FDIC insurance eligibility stemming from LSB and Sutton’s regulated status.

The Federal Deposit Insurance Corporation (FDIC) preserves banking stability and consumer confidence by guaranteeing bank deposits of up to $250,000 per individual at member institutions. This prevents bank runs and ensures Americans don’t lose their savings even if banks fail.

With LSB and Sutton covered under the FDIC umbrella, money in Cash App accounts receives the same ironclad protections as traditional bank deposits. This critical coverage secured nearly $2 Billion in total Cash App balances.

But Cash App is Not a Bank…

While Cash App offers certain banking-like services, important distinctions remain compared to actual banks:

• Cash App cannot accept initial deposits or pay interest as a non-bank entity.
• LSB and Sutton Bank hold deposited funds on behalf of Cash App.
• Cash App deals with financial regulators as a third-party prepaid card issuer and money transmitter.

So, while convenient and protected, funds placed into Cash App don’t benefit from the same robust regulatory guardrails governing actual banks. Tradeoffs exist between innovation and oversight.

Conclusion

Cash App merges security with convenience by leveraging strategic partnerships with Lincoln Savings Bank and Sutton Bank. All the efficiency of mobile-first fintech combines with the confidence of FDIC coverage guarding deposits.

However, those eyeing banking services more closely aligned with crypto should browse industry-leading crypto banking platforms. Either way, when sending funds through Cash App, you can rest assured that both speedy transactions and account safety are built-in thanks to exceptional banking integration.