Square Banking Q&A: Let's talk about how Square Savings can help you prepare for tax season💰

[Tom]

Hi Seller Community,

With the 2022 tax season in the rearview mirror for many of us, we're eager to catch your questions and get your feedback on how Square Savings can help you stay on top of taxes in the year ahead!

Whether you pay your business taxes monthly or quarterly, Square Savings offers automated saving, which helps to take the guesswork out of withholding amounts, and folders, which help to organize and keep money set aside for taxes.

We were grateful to have @jmonfort from the Square Banking team address your questions and share solutions for automating healthy habits with Square Savings on Wednesday, May 4th.

A few example questions:

• How do folders in Square Savings accounts work?
• What’s the benefit of setting up an account with Square Banking versus my existing bank account?
• If I could do "_______" with Square Savings, that would help me run my business much more smoothly.

Note: We can't share specific details on our product roadmaps, though this information will be helpful as we continue to make improvements.

Block, Inc. is not a bank. Banking Services provided by Square Financial Services, Inc. and Sutton Bank, Members FDIC.

[joytotheworld]

I don't have a question but a comment.  I would love to see the interest rate become a high yielding rate.  Like 5% or higher 😉 .  I currently have a 7.8% elsewhere so I obviously use that more.

[jmonfort]

Hello, as a business savings account, our current yield is 0.50% APY, which is 8x the national average of 0.06%. It is important to note, though, that rates for personal savings accounts can be higher.

[EWClayworks]

When will LLC's be able to open a savings account?

[jmonfort]

Good news, we currently support LLCs, as well as sole proprietors, S-Corp, C-Corp, Cooperative, and partnership! You can open a Savings account here.

[hoagieshack]

Trying to move money to the my Savings from my sales balance, is that possible? You can transfer out to your bank but I don't see and option to transfer to the Square savings

[jmonfort]

First and foremost, you’ll need to have a Savings account. From your Savings dashboard, simply push the “Add money” button, enter the amount you’d like to transfer, and use the drop down menu to choose the source of the funds, either your Square Balance or external account.

[Imavet]

Why isn’t my business eligible for savings?  I’ve tried twice and it says “your business isn’t currently eligible “

[Pacha]

Is there a means of pushing all the Square Merchant Fees through the Square Savings account such that the fees may flow through the Bank Feed in Quickbooks and be reconciled (realized)?

[NCCottage]

When will partnerships be eligible to use Square Savings?

[jmonfort]

Good news, we currently support partnerships, as well as sole proprietors, LLC, S-Corp, C-Corp, and Cooperative! You can open a Savings account here.

[Vince3]

We will need checks available as well as check cashing and cash depositing for this to be useful. Is that in the cards?

[jmonfort]

Hi Vince, these features are available through Square Checking. Here’s a link to their webpage, where you can find info on their features, how it compares to other checking accounts, FAQ, and more.

[Nicolecolli2]

Greetings Tom why is it when I swipe I get 20 -30 dollars taken away from me .. please help this is so unreal

[jmonfort]

Hi Nicole, you can adjust your automated savings rate by clicking on your folder and toggling the feature on/off or clicking on the amount to adjust.

[JoeJoy74]

Does Square savings account come with interest or monthly fees? How much is it

[jmonfort]

In terms of interest, you’ll earn a 0.50% APY, which is 8x the national average of 0.06%. In terms of fees, no! There are no monthly maintenance fees, sign-up fees, or fees associated with minimum balances, as there are no minimum balance requirements. There are also no overdraft fees or withdrawal limits fees that are associated with traditional business savings accounts.

[Gloriousgherkin]

What’s the benefit of setting up an account with Square Banking versus my existing bank account?

[jmonfort]

With Square Banking, you’ll have your payments, banking, and cash flow together – all working as one. When you take payments and bank through Square, everything is connected. Watch your sales flow directly into Square Banking, so accessing and moving your money is fast, easy—and can even be automated. From there, spend from Square Checking with your Square Card when you need it, or set money aside in a Savings account to earn an APY when you don’t. You can also become eligible for a Square Loan, have it deposited directly into your Checking account and automatically repay it through your Square sales.

[aimeesbji]

for the purpose of keeping track for income reporting, is there a report that shows how much money was saved each month? i am also curious as to how to enter a transfer of savings into my bank account when it was already reported as income...this may be an accountant question but figured i would ask your thoughts

[jmonfort]

Hi Aimee, You can check how much money you’ve saved in your Square Savings account from your monthly statements. To navigate there, you’ll want to start from your Square Dashboard -> Balances -> Savings -> Settings (a gear icon on top right) -> Documents. In Documents, you will also see a Tax document for interest income (1099-INT) if you earned more than $10 in interest. You'll receive your Tax documents by February of the next calendar year, if eligible. In general, Savings is not additional income if not interest income, but I would recommend consulting with an accountant.

[Baycentre]

Can savings be used for any purpose? Can it be transferred to the square account for withdrawal or transfer?