Square updated its Cash app on Monday, adding the ability to store money within a Cash Drawer. The digital savings account, of sorts, will keep money from being directly deposited in your checking account.
Why would you want to do that? Well, you can use the funds in your Square Cash Drawer as means to pay future bills, or easily send money to someone else without having to touch funds in your checking account.
- After updating the app, open it and tap on your profile picture in the top-left corner.
- Scroll down and find the Cash option under Funds; tap on it.
- Slide the switch to the On position, then enter a passcode if prompted.
With Cash Drawer enabled, any time someone sends money to your Cash account your Cash account will hold the funds. I had $1 sent to me, and after 30 it has yet to show up in my Cash Drawer. However, the alert did say it would take some time before the funds were in my Drawer.
When you have a balance in your Cash Drawer, those funds will be used first, followed by your linked debit card. You can view your balance by tapping on the Cash Drawer button at the top of the main screen, or by tapping on your profile icon, followed by Cash. (This is also the same place you will need to navigate to should you want to disable the feature.)
To withdraw your Cash balance, tap on the Cash Out button when viewing your Cash Drawer balance.
Square's announcement notes the company plans on adding a button to add funds to a Cash account in the next few weeks.