Additional Savings Deposit Account Terms

These Additional Savings Deposit Account Terms (the “Deposit Account Terms”) are a legal agreement between you (“you”, “your”) and Square Financial Services, Inc., member FDIC (“Bank”), a Utah-chartered industrial bank wholly owned by Square, Inc. (“Square”) and govern your use of Square Savings (“Square Savings Account” or “Account”), an online savings account (the “Service”). These Deposit Account Terms also contain important disclosures and information about your Square Savings Account. By using Square Savings, you agree to be bound by these Deposit Account Terms, the General Terms of Service (“General Terms”), the E-Sign consent, the Privacy Notice, and all other terms, policies, and guidelines applicable to the Service. Defined terms will have the same meaning as those found in the General Terms, unless otherwise defined here. In the event of a conflict between these Deposit Account Terms and the General Terms, the provisions of the General Terms shall prevail.

I. Eligibility

You must be a resident of the United States and at least 18 years old, have a valid Social Security Number (“SSN”) or Individual Taxpayer Identification Number (“ITIN”), and have a physical street address or a military address in the United States of America or District of Columbia.

You must use the Service for business purposes only. By using the Service, you represent to us that you will not use the Service for personal, family, or household purposes. You acknowledge and agree that Square Savings is not a consumer savings account, and that statutory and regulatory protections for consumers, including those under the Electronic Fund Transfer Act and Regulation E, as well as the Truth in Savings Act and Regulation DD, do not apply to your Account.

II. IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT

TO HELP THE GOVERNMENT FIGHT THE FUNDING OF TERRORISM AND MONEY LAUNDERING ACTIVITIES, FEDERAL LAW REQUIRES ALL FINANCIAL INSTITUTIONS TO OBTAIN, VERIFY, AND RECORD INFORMATION THAT IDENTIFIES EACH PERSON WHO OPENS AN ACCOUNT. WHAT THIS MEANS FOR YOU: WHEN AN ACCOUNT OWNER OPENS A SAVINGS ACCOUNT, WE WILL ASK FOR ACCOUNT OWNER’S NAME, PHYSICAL ADDRESS, DATE OF BIRTH, AND OTHER INFORMATION THAT WILL ALLOW US TO IDENTIFY THE ACCOUNT OWNER. WE MAY ALSO ASK ACCOUNT OWNER TO PROVIDE YOUR SOCIAL SECURITY NUMBER. BY APPLYING FOR THE SAVINGS ACCOUNT, YOU CONFIRM YOU HAVE AUTHORIZED SQUARE TO PROVIDE US WITH THIS INFORMATION.

III. Tax Information and Backup Withholding

The Bank is required to annually report to you and the Internal Revenue Service (IRS) interest paid totalling $10 or more during the year for your Square Savings Account on IRS Form 1099-INT. The Bank may also be required to report this information to appropriate state and local tax authorities.

When you open your Square Savings Account, the Bank is required by federal law to obtain your certified U.S. Taxpayer Identification Number (“TIN”) as well as information regarding your federal backup withholding status. When you apply for your Square Savings Account, you certify that you have provided your correct TIN and backup withholding status. Your TIN is generally your SSN if you are: (a) a U.S. citizen; (b) a U.S. permanent resident; or (c) a resident alien eligible to receive a SSN from the Social Security Administration. If you do not qualify for a SSN, you are required to provide your ITIN.

If you do not give us your certified TIN, or if the IRS notifies us that the name and TIN you provided us are incorrect, or if the IRS notifies us that you failed to report all your interest and dividends on your federal income tax return, or if you notify the Bank that you are subject to backup withholding, we are required under federal law to backup withhold on the interest paid to your Account at the current backup withholding rate and remit it to the IRS. In some cases, a state or local tax authority may also require us to pay state and local backup withholding on interest paid to your Account when we are required to pay federal backup withholding to the IRS. If you are subject to backup withholding, the total annual backup withholding amount will be reported to both you and the IRS on Form 1099-INT, regardless of the amount of the interest payment. You may claim amounts withheld and paid to the IRS as a credit on your federal income tax return.

For more information or if you have questions about how this information applies to you, please consult your U.S. tax advisor as neither the Bank nor its employees provide tax advice.

IV. Account Opening Disclosures

You acknowledge and agree that because your Square Savings Account is not established for personal, family, and household purposes, and is instead established for business purposes only, that the Truth in Savings Act and Regulation DD do not apply to your account. We are providing this section to you so you may understand certain important information about your Square Savings Account. The Bank providing you the information in this section is not an acknowledgement of any applicability of the Truth in Savings Act and Regulation DD.

1. Variable Rate

Your interest rate and annual percentage yield (“APY”) may change at the Bank’s discretion at any time, without notice to you and without limitation on the amounts by which the interest rate and APY may change.

2. Compounding and Crediting

Interest that is earned will be compounded daily, then credited to your Square Savings Account at the end of a statement period. The Bank will calculate interest using the daily balance method, whereby a daily periodic rate will be applied to the full amount of principal in your Square Savings Account each day. The daily periodic rate will be based on 1/365 of the interest rate in effect at the time of calculation.

If you close your Square Savings Account, the Bank will pay you interest up to the last full calendar day preceding the day you close the Account. The Bank will credit any such interest to your Square Savings Account at the time you close the Account.

You may view the most current APY that applies to your Square Savings Account by logging into your Square Dashboard.

3. Minimum Balance Requirements

There is no minimum balance required for you to open a Square Savings Account, to avoid any fees charged, and/or to obtain an APY in effect at a given time.

4. When Interest Begins to Accrue

Interest will begin to accrue on deposits, such as transfers from your Square balance, Square Card, and/or an external bank Account you have linked to your Square Savings Account, on the business day we receive credit for the deposit.

5. Fees
Fee Amount
Account Opening $0
Monthly Service Fees $0
Annual Service Fees $0
Excessive Withdrawal $0
Instant Transfers to Linked Bank Account N/A
Overdraft N/A
Stop Payment $0
Inactivity Charge $0
6. Transaction Limitations

You can make up to a maximum of six (6) withdrawals from your Square Savings Account during a monthly cycle. These withdrawals include one-time transfers and other electronic transmissions from your Square Savings Account. If the Bank permits you to make more than six (6) withdrawals during a monthly cycle, the Bank is not waiving any rights to enforce the six (6) withdrawal limit in future monthly cycles.

The Bank reserves the right to impose limits on the dollar amounts you can withdraw on a given transaction and/or on a given period.

For additional information regarding the types of electronic transfers you can make, as well as any limitations on the frequency and dollar amount of any such transfers, please refer to the sections on Electronic Fund Transfers (Types of Transfers; Limitations) and Depositing and Withdrawing/Accessing Funds (How to Make Deposits and Withdraw/Access Funds) in these Deposit Account Terms.

V. Electronic Fund Transfers

You acknowledge and agree that because your Square Savings Account is established for business purposes only, and not for personal, family, and household purposes the Electronic Fund Transfer Act and Regulation E do not apply to your account. We are providing this section to you so you may understand certain important information about your Square Savings Account. The Bank providing you the information in this section is not an acknowledgement of any applicability of the Electronic Fund Transfer Act and Regulation E.

1. Your Liability for Unauthorized Transactions

Tell us AT ONCE if you believe your Square Savings Account credentials have been lost or stolen or you believe a transaction has been made without your permission, or you could lose all the money in your Square Savings Account. Contact the Bank immediately at 1-855-700-6000 to keep possible losses to a minimum.

You agree that you will be liable for any monetary losses that result from transactions made without your permission. You agree that, as a condition of opening and maintaining your Square Savings Account, you will enroll in two-factor authentication (“2FA”). 2FA is a security process that a user must engage with whenever an attempt is made to log on to the Square Dashboard to access and/or transfer funds from the Square Savings Account. The 2FA process assists the Bank in verifying your authorization to transfer funds.

If you choose not to enable or maintain 2FA security while your Square Savings Account is open, or if you choose to temporarily disable 2FA security (such as by enabling “Remember this device for 30 days” functions and/or other similar functionalities), you agree that the Bank will not be liable for any authorized or unauthorized transfers originated from your Square Savings Account and that are facilitated by the Bank.

You acknowledge that the Bank may, at its discretion, agree to cover monetary losses that result from transactions made without your permission, but that any such action is not an acknowledgement of any legal obligation of the Bank to do so.

2. Contact Information

For customer service, you may contact the Bank at 1-855-700-6000.

3. Business Days

Every day is a business day, except Saturday, Sunday, and federal holidays.

If you make a deposit before the established cutoff time on a business day that we are open, we will consider that day to be the date we receive the transfer. If you make a deposit after the established cutoff time or on a day we are not open, we will consider the day your deposit is received by the Bank to be the next business day we are open.

Our deposit cutoff time for electronic credits is 3:00 p.m., Central Time.

4. Types of Transfers; Limitations

The Square Savings Account cannot be used to make electronic fund transfers for personal, family, or household purposes. The Account cannot be used for preauthorized electronic transfers from the Account; if this type of transfer is presented for payment, it will not be permitted.

As part of your Square Savings Account, you will be able to direct and isolate certain funds you receive using Square into a “Folder” or “Folders”. Any transfers from your Square Savings Account that are initiated by an external bank account will be debited from a Folder that is designated as a default (“Default Folder”). The Default Folder must have sufficient funds to cover the amount of any transfer. A transfer will not be permitted if the Default Folder does not have sufficient funds to cover the transfer amount; any amounts you may have in any other Folder(s) (“Custom-Folder” or “Custom-Folders”) will not be drawn upon to cover the transfer amount.

For additional information regarding the types of electronic transfers you can make, as well as any limitations on the frequency and dollar amount of any such transfers, please refer to the sections on Account Opening Disclosures (Transaction Limitations) and Depositing and Withdrawing/Accessing Funds (How to Make Deposits and Withdraw/Access Funds) in these Deposit Account Terms.

5. Fees

For information on applicable fees for electronic funds transfers or the right to make transfers, please refer to the section on Account Opening Disclosures (Fees).

6. Documentation

Your monthly statement for your Account will be available online by logging onto your Square Dashboard. We will send you a notice via email when your monthly statement is available. We will provide a monthly statement every month that your Square Savings Account is open.

If a third party has preauthorized electronic transfers initiated to your account at least once every sixty (60) days, you can contact the Bank at 1-855-700-6000 to find out whether or not the deposit has been made. If the transfer is successful, the Bank will give you written notice within two (2) business days. If the transfer is not successful, the Bank will give you written notice within two (2) business days that the transfer did not occur.

7. Confidentiality

The Bank will provide information to third parties about your Square Savings Account in accordance with the Privacy Notice.

8. Errors or Questions About Your Square Savings Account Transactions

Contact customer service at 1-855-700-6000 as soon as you can if you think an error has occurred involving your Square Savings Account. We must hear from you no later than 60 days after the earlier of the date you electronically access your Square Savings Account, if the error could be viewed in your electronic transaction history, or the date we sent the FIRST written transaction history on which the error appeared. When you send notification of an error involving your Square Savings Account, you will need to tell us: (a) your name and Square Savings Account number; (b) why you believe there is an error and the dollar amount involved; and (c) approximately when the error took place. We will review the information submitted in a commercially reasonable manner, but given that the Bank’s Square Savings Account program implements a commercial product, you are not entitled to and the Bank is not obligated to follow the requirements or obligations of the Electronic Funds Transfer Act and Regulation E promulgated thereunder, which only apply to consumer transfers. If you need more information about our error resolution process, contact customer service at 1-855-700-6000.

VI. Depositing and Withdrawing/Accessing Funds

1. How to Make Deposits and Withdraw/Access Funds

Funds may be deposited into your Square Savings Account by: (a) transfers of funds from your Square Seller Card Account, subject to applicable terms; (b) transfers of funds from your Square balance, subject to applicable terms; (c) transfers of funds from another account(s) at the Bank; and/or (d) transfers of funds from a linked bank account, subject to your bank’s terms.

For transfers of funds from your Square balance, you may also authorize the Bank to transfer a set percentage of any card receivables you process through Square daily to your Square Savings Account. If you do not process any card receivables on a given day, then no funds will be transferred to your Square Savings Account for that day. You can choose to sign up for this feature, adjust your feature settings, and/or discontinue use of this feature by logging onto your Square Dashboard and following the appropriate prompts. If you choose to discontinue use of this feature, it may take as long as ten (10) business days to complete your request, so any transfers scheduled during this period may be initiated.

Subject to the terms provided in the sections on Account Opening Disclosures (Transaction Limitations) and Electronic Fund Transfers (Types of Transfers; Limitations) in these Account Terms, you may withdraw or access your funds from your Square Savings Account by logging into your Square Dashboard and: (a) transferring funds to your Square Seller Card Account and then using your Square Card, or otherwise accessing those funds, subject to applicable terms; (b) transferring funds to your Square balance and then accessing those funds, subject to applicable terms; (c) transferring funds to another account(s) at the Bank; and/or (d) transferring funds to a linked bank account then accessing your funds, subject to your bank’s terms.

We do not accept deposit or withdrawal requests not made through your Square Dashboard, including via email, telephone, or mail. We also do not accept cash, money orders, wire transfers, physical or electronic checks, and foreign currency.

For additional information regarding the types of electronic transfers you can make, as well as any limitations on the frequency and dollar amount of any such transfers, please refer to the sections on Account Opening Disclosures (Transaction Limitations) and Electronic Fund Transfers (Types of Transfers; Limitations) in these Deposit Account Terms.

2. Square Savings Account Balances

If you do not have sufficient available funds to transfer out of your Default Folder, the transaction will not be permitted. You are not authorized to use funds added to your Square Savings Account in error. Any transaction that could create a negative balance for your Square Savings Account is not permitted. Adjustments may be made to your Square Savings Account to reverse an error, reflect an adjustment, or to resolve a dispute regarding a transaction posted to your Square Savings Account. These processing and adjustment entries could cause your Square Savings Account to have a negative balance. If your Square Savings Account has a negative balance, you agree: (a) that the Bank may automatically apply any subsequent transfers to your Square Savings Account to satisfy the negative balance and (b) to pay the Bank on demand by a personal check, money order, or other payment method authorized by the Bank for the amount of the negative balance. If no future funds are added to your Square Savings Account, we may send you a notice explaining the reason for the adjustment and requesting payment by a personal check, money order, or other payment method to satisfy the negative balance. Payments should be mailed to us at the address provided below or the address stated in the applicable notice.

VII. Funds Availability

Funds transfers to your Square Savings Account from your Square Seller Card Account, your Square balance, and/or another account at the Bank will be available in your Square Savings Account on the date we receive the transfer.

Funds transfers to your Square Savings Account from a linked external bank account will be available within three (3) business days from the business day on which such deposits are received by the Bank in accordance with the National Automated Clearing House Association (“NACHA”) Operating Rules and Guidelines (“NACHA Rules”).

Funds availability may be delayed for a longer period of time if:

  • We believe a transfer may be the result of fraud or an unauthorized transfer;
  • You have violated the terms of your Account, such as by overdrawing your Account; or
  • There is an emergency, such as a failure of computer or communications equipment.

We may notify you if we delay the availability of deposited funds for any of these reasons, or any other reasons, and will tell you when the funds will be available.

All electronic deposits are provisional until we receive final settlement for entry. We may deduct the amount of any electronic fund transfer credited to your Square Savings Account that is reversed. We may deduct such amount from any account you have with us at any time without notice to you. You agree to promptly repay any overdrafts resulting from the reversed payment.

If you are a party to an ACH entry, you agree that we may transmit an entry through the ACH, and you agree to be bound by the NACHA Rules, the rules of any local ACH, and the rules of any other systems through which the entry is made.

If you want to view Square Savings Account activity, including ACH credits, you may do so by logging onto your Square Dashboard.

VIII. Closing or Suspending Your Account

We may close or suspend your Account or these Deposit Account Terms at any time. You may close your Square Savings Account and terminate these Deposit Account Terms by following the instructions provided to you in the customer experience. The closing of your Square Savings Account and the termination of these Deposit Account Terms will not affect any of our rights or your obligations arising under these Deposit Account Terms prior to cancellation.

If your Square Savings Account is closed or terminated for any reason, any outstanding balance will be returned to your linked bank account or mailed to you. If your Account is closed prior to the end of the statement cycle, any accrued interest earned for that cycle will be paid to your Square Savings Account at the time you close the Account.

For security purposes, you may be required to supply identification, external account, and address verification documentation prior to issuing a refund. If you do not have a linked bank account at the time of Account closing, allow up to fourteen (14) days for processing of such balance return; specific information and instructions, including how to receive any remaining Account balance, will be provided to you when you contact us. We reserve the right to refuse to return any unused balance amount less than $1.00.

IMPORTANT: If you terminate your relationship with Square, your Square Savings Account will automatically be closed. Upon closure, any remaining funds in the Account will be returned to you per this section.

IX. Other Terms

1. FDIC Insurance

The Square Savings Account is made available by Square Financial Services, Inc., member FDIC. The Federal Deposit Insurance Corporation (“FDIC”) insures deposits according to the ownership category (i.e., individual or joint) in which the funds are insured. Deposits are insured by the FDIC up to the standard maximum deposit insurance amount per depositor, per FDIC-insured bank, and per ownership category. To determine how much insurance is applicable to your Account with us and for any other FDIC insurance requirements that may apply, please visit the FDIC’s website at www.fdic.gov/deposit/deposits or call the FDIC directly at 1-877-ASKFDIC (1-877- 275-3342). You can also use the FDIC’s Electronic Deposit Insurance Estimator (EDIE) at [www.fdic.gov/edie].

2. Stop Payments

You may request a stop payment on a transfer that the Bank has not yet completed. In order to process a request, you must provide us with sufficient information - including the payee name, the transaction amount, and the date of payment - to identify and stop the transfer. To request a stop payment, please contact the Bank at 1-855-700-6000.

3. Recovery Authorizations and Security Interest

You grant the Bank and/or Square and its subsidiaries and affiliates a security interest in, as well as a right of setoff and/or debit against, and assign, convey, deliver, pledge and transfer to the Bank and/or Square and its subsidiaries and affiliates, as security for repayment of any obligations due under these Deposit Account Terms and any other agreement you have with the Bank and/or Square and its subsidiaries and affiliates, all of your right, title, and interest in and to all of your accounts with the Bank and/or Square and its subsidiaries and affiliates. You grant the Bank and/or Square and its subsidiaries and affiliates “Recovery Authorizations” concerning funds you are obligated to repay the Bank and/or Square and its subsidiaries and affiliates. Recovery Authorizations include your authorization of the Bank and/or Square and its subsidiaries and affiliates to debit, charge, setoff against and otherwise recover funds from any other Square Savings Account you have with the Bank, any connected Square Account, any Balance (as defined in the Payment Terms), any Reserve (as defined in the Payment Terms), any payment instrument, linked bank, depository and other account registered in your Square Account and/or your Square Savings Account. You also authorize the Bank to administratively freeze your Square Account and/or Square Savings Account to protect the security interest, collection, charge, debit, and setoff rights as provided for in this section. In the case of a linked bank account and/or depository and other account registered in your Square Account and/or your Square Savings Account, you authorize the Bank to administratively freeze or direct any third party bank holding the account to freeze all such accounts to allow us to protect the security interest, collection, charge and setoff rights as provided for in this section.

Further, in the event that any attempt to recover funds from you should fail, Recovery Authorizations include your grant to the Bank and/or Square and its subsidiaries and affiliates of new, original authorizations to recover all or less than all of the amount you owe the Bank and/or Square and its subsidiaries and affiliates and/or belong to them. You are responsible for fees resulting from unsuccessful attempts. You also authorize the Bank and/or Square and its subsidiaries and affiliates to reverse any debit or credit to your Square Account and/or Square Savings Account in the event of an erroneous debit or credit. Recovery Authorizations include all authorizations to take the above steps without prior notice to you and irrespective of (i) whether Bank and/or Square and its subsidiaries and affiliates have made demand under these Deposit Account Terms or any other agreement you have with the Bank and/or Square and its subsidiaries and affiliates; and (ii) whether the obligation is contingent, matured or unmatured. Recovery Authorizations include all authorizations to take the above steps in complete compliance with the Network Rules (as defined in the Payment Terms) and the NACHA Rules for business-related ACH debits and credits. You agree that your grant of Recovery Authorizations has the same legal effect as if you had signed a paper containing the same terms.

The debit or charge authorizations you have provided to the Bank and/or Square and/or its subsidiaries or affiliates in this section continue until your obligations are fully satisfied and/or until you revoke these authorizations by calling 1-855-700-6000. It may take as long as 10 business days to process your revocation request. All debits scheduled before your revocation request is processed will still be attempted. If you revoke your debit or charge authorizations, you will still be responsible for any unpaid amount, you must establish an alternative way to pay any obligation owed, and the Bank and/or Square and its subsidiaries and affiliates will no longer be able to credit your linked bank account when the need arises.

Your failure to fully pay amounts that you owe on demand will be a breach of these terms. You are liable for any of our costs associated with collection in addition to any amounts owed, including attorneys’ fees and expenses, collection agency fees, and any applicable interest.

4. Death or Incapacity

If we have reason to believe the Account owner has died or has been declared legally incompetent, we may place a hold on the Account to retain funds and refuse to accept deposits or to permit withdrawals until we know and have verified the identity of the successor. We will require proof of death or adjudication of incompetence (e.g., certified copy of court order, death certificate, or official record). Until we receive notice and any required proof of death or incompetence, we may act as if all owners are alive and competent. In the event we receive written notice from a personal representative, executor, administrator, conservator, or guardian purporting to represent you or your estate, we shall be entitled to rely on all information supplied and representations made in such written notice to the full extent permitted by applicable law.

The Bank may limit or refuse to permit transfers from your Square Savings Account if there is pending legal action that affects your Account. This includes attachments, garnishments, levies, liens, and/or other legal processes. The Bank may also comply with any notices, claims, and/or court orders, among others, to pay claims and/or freeze your Square Savings Account. You acknowledge and agree that the Bank will not be liable to you for any actions it takes pursuant to this section.

5. Unclaimed Property

If your Square Savings Account becomes inactive (e.g., if you do not access your Square Savings Account for a certain period of time), applicable law may require us to report the funds in your Square Savings Account as unclaimed property. If this occurs, we may try to locate you at the address shown in our records. If we are unable to locate you, we may be required to deliver any funds in your Square Savings Account to the applicable state as unclaimed property. The specified period of time to report and send funds in an inactive Square Savings Account to a state varies by state, but usually ranges between two and five years.