We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Block Expands Square Banking With 3.5% APY Savings for Sellers
Read MoreHide Full Article
Key Takeaways
Block launched Square High Yield Savings, offering eligible sellers a 3.5% APY on reserves.
XYZ activates the higher APY automatically when Square Savings balances reach $10,000.
Block plans a sales tax folder to automate tax savings and simplify cash management.
Block's (XYZ - Free Report) banking subsidiary, Square Financial Services (“SFS”), has introduced Square High Yield Savings, allowing eligible Square sellers who maintain at least $10,000 in daily cash reserves in their Square Savings account to earn a 3.5% annual percentage yield (APY). The offered rate is significantly above the national average savings account yield, enhancing the value proposition for merchants using Square's ecosystem.
The initiative supports SFS' strategy to grow core deposits while providing sellers with an attractive return on idle cash. A larger deposit base can also strengthen SFS' ability to fund lending programs and further expand Block's suite of financial services for businesses and consumers.
Square sellers can automatically allocate a portion of their daily sales into their Square Savings account through the Square Dashboard. Once account balances reach the $10,000 threshold, the higher APY is activated automatically.
Key features of the program include no minimum deposit requirement, no monthly maintenance fees and FDIC insurance coverage of up to $2.5 million through the Square Savings deposit sweep program. Interest accrues daily and is applied to the entire account balance.
Square plans to launch an automated sales tax folder within Square Savings. The feature will automatically set aside sales tax collected from eligible card transactions, helping sellers streamline cash management and reduce administrative work. The tool will leverage existing Square tax settings and support businesses operating across multiple locations and tax jurisdictions.
Conclusion
Block’s launch of Square High Yield Savings strengthens the value of its merchant ecosystem by offering competitive returns on cash reserves while encouraging deeper use of its financial services. Combined with upcoming cash management tools, the initiative supports deposit growth, enhances seller convenience and expands the capabilities of Square Financial Services.
Over the past three months, shares of this Zacks Rank #1 (Strong Buy) company have gained 16.1% against the industry's decline of 1.8%.
The Zacks Consensus Estimate for BILL’s 2026 earnings per share (EPS) has moved northward by a cent to $2.64 over the past week.
The consensus estimate for TEAM’s 2026 EPS has moved up 17.1% to $5.48 per share over the past two months.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
View the Zacks #1 Rank List
Image: Bigstock
Block Expands Square Banking With 3.5% APY Savings for Sellers
Key Takeaways
Block's (XYZ - Free Report) banking subsidiary, Square Financial Services (“SFS”), has introduced Square High Yield Savings, allowing eligible Square sellers who maintain at least $10,000 in daily cash reserves in their Square Savings account to earn a 3.5% annual percentage yield (APY). The offered rate is significantly above the national average savings account yield, enhancing the value proposition for merchants using Square's ecosystem.
The initiative supports SFS' strategy to grow core deposits while providing sellers with an attractive return on idle cash. A larger deposit base can also strengthen SFS' ability to fund lending programs and further expand Block's suite of financial services for businesses and consumers.
Square sellers can automatically allocate a portion of their daily sales into their Square Savings account through the Square Dashboard. Once account balances reach the $10,000 threshold, the higher APY is activated automatically.
Key features of the program include no minimum deposit requirement, no monthly maintenance fees and FDIC insurance coverage of up to $2.5 million through the Square Savings deposit sweep program. Interest accrues daily and is applied to the entire account balance.
Square plans to launch an automated sales tax folder within Square Savings. The feature will automatically set aside sales tax collected from eligible card transactions, helping sellers streamline cash management and reduce administrative work. The tool will leverage existing Square tax settings and support businesses operating across multiple locations and tax jurisdictions.
Conclusion
Block’s launch of Square High Yield Savings strengthens the value of its merchant ecosystem by offering competitive returns on cash reserves while encouraging deeper use of its financial services. Combined with upcoming cash management tools, the initiative supports deposit growth, enhances seller convenience and expands the capabilities of Square Financial Services.
Over the past three months, shares of this Zacks Rank #1 (Strong Buy) company have gained 16.1% against the industry's decline of 1.8%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the internet-software sector are BILL Holdings, Inc. (BILL - Free Report) and Atlassian (TEAM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for BILL’s 2026 earnings per share (EPS) has moved northward by a cent to $2.64 over the past week.
The consensus estimate for TEAM’s 2026 EPS has moved up 17.1% to $5.48 per share over the past two months.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.