Cash App Vs. Bank Account (Explained For New Users)

cash app vs bank account

When you are moving around and looking for new ways to manage your money, you may find yourself suddenly immersed in a world of choices. Cash App is a popular alternative to banking with many people looking to move to the application. But is it better than a normal bank account?

Cash App is an alternative banking app that allows for investing, paying, spending, sending and controlling money all within one app while in the United States. Your bank account will always work as normal bank accounts and allow you to take your money anywhere in the world. 

There are many parts of the bank account that you need to understand and some things about the Cash App that may surprise you. Understanding how you can use your money, the fees involved, and the overall effect these accounts will have on your money must be understood. 

Can You Use Cash App As A Bank Account?

cash app

Yes, if you live in the United States, you can use the Cash App as your main account as it allows for paychecks to be paid into the account. Further, you can do transfers, request a bank card, and have it connected back to any other bank accounts that you may need to pay or keep up. 

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Cash App has been working hard to ensure that it can be used as a replacement for your bank account, allowing for digital control over your money. Allowing you to have less overall fees when receiving and sending money than you would usually experience with bank accounts. 

However, you will not receive interest on your money being held in Cash App; if the Cash App servers crash, then you will not even be able to use your debit card. With several limitations on how much you can draw from an ATM each day and how much you can draw each week. 

Do You Need A Bank Account For Cash App?

No, you can create an account on Cash App without having a bank account, with limited functions until you have sent in all the right paperwork. When not linked to a bank account Cash App works through your email or your username, avoiding using a specific number or reference. 

Many people working with clients far away prefer to use Cash App specifically because no one involved needs to have a bank account. You will need to have a different way to reference the account if someone makes a transfer or payment from a bank account. 

Many people who have Cash App prefer to work with a bank account linked exclusively to the app. This allows for Cash App to control the money in both accounts and for traditional banks to transfer money to the accounts instead of adapting easily. 

What Is A Cash App Account?

To understand how a Cash App account compares to a normal bank account, we need to look at just what a Cash App account is. Several aspects of Cash App have made it one of the most attractive options to control their money when living in the United States. 

Understanding every aspect of the app is not possible without making an account and starting to use the app. The app has been made to work better with completely online shops rather than traditional shops that may not even have a constant internet connection. 

  • Application: The application you install on a mobile device is the main way you will be working with Cash App. Once your account is made, you can log in through their website, but you will experience some limitations. 
  • Instant Transfer: One of the biggest advantages of using Cash App is instant money transfers, with only a few minutes delay. These transfers come with a slight cost on each transfer, making them perfect for working online and investing. 
  • Low Costs: There is no account fee to having a Cash App account, with the only costs coming from ATM and transfer fees. This is something that many people find very attractive as it means there is no cost to owning money and just leaving it in your Cash App account. 
  • Investing: Recently, Cash App has allowed people to invest through their applications. This allows you to buy, hold, and sell both stocks and shares, which you would usually require an alternative application for. 
  • Money Management: Cash App does not allow third-party services to take your money in the same way that some banks may. This means that you need to approve transactions before the app allows them to happen. 

What Are The Typical Bank Accounts?

Bank accounts are almost impossible to generalize since every single bank on earth has its systems and limitations. However, they do all have a few things in common that have made one of the only ways people know how to work with their own money. 

Each of these is a basic function that you can find at bank accounts, each one making them preferable when you have to work with money. It may seem odd, but banks are a good way to keep your money not only safe but to allow you to use your money almost anywhere in the world. 

  • Accounts: Banks work with your account, with every bank in the world having everything from child accounts to credit accounts for the seniors. The variety of options and the benefits that all the accounts give are often what keep many people.
  • Applications: This will differ from bank to bank, but many have caught up with what the apps out there have to offer. Allowing you to do almost anything you can imagine from your bank account without having to go in and stand in long lines. 
  • Security: Say what you want; bank accounts are more secure than the internet would ever have you believe. With most banks having insurance for if something does go wrong, this means that if someone steals your card or money, the bank will take responsibility and reimburse you. 
  • Investing: You may know that you will not be able to become rich by buying shares, stocks, and everything else. Banks have investment professionals that can handle your money for you, allowing you to easily and comfortably invest without worry. 
  • Transfer: The Cash App and PayPal may allow you to transfer worldwide, bank accounts allow you to transfer safely. Bank accounts usually allow you some security and checks that will keep your transferring safe and properly tracked. 


Cash App is a fantastic option if you want to take control of your money while living in the United States and you need an easy and affordable way to control your money. Bank accounts will always be the safest way to store your money and will allow you to spend money anywhere in the world easily. 

Remember, your Cash App only works in the US, with almost no service provided even in the UK! 

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As a Current mobile banking app affiliate, I earn from qualifying purchases.
topmobilebanks logo

Current: The Future of Banking

As a Current mobile banking app affiliate, I earn from qualifying purchases.