Square is launching a traditional financial product called Square Banking that combines savings, checking, and loans for merchants.
These banking services are provided by Square Financial Services, Inc. and Sutton Bank, and are FDIC insured. Christina Riechers, Square Banking’s Head of Product:
We’re introducing fair, accessible financial services that connect directly with our sellers’ payments, helping them unlock instant access to their sales, automate their savings, and receive personalized financing offerings.
Square Banking doesn’t have any fees, credit checks, or a minimum balance. The company wants to make it easier for small businesses to start using their money without having to transfer it to a separate bank account first. Right now, Square offers an annuel percentage yield (APY) of 0.50% but that rate is only guaranteed through the end of 2021.