Square Financial Services, a subsidiary of Block Inc. (NYSE: XYZ), launched a high-yield savings tier offering 3.50% annual percentage yield for Square sellers who maintain daily balances of $10,000 or more in their Square Savings accounts.

The new tier automatically activates when sellers reach the $10,000 threshold, requiring no additional applications or separate accounts. The rate applies to the entire balance and is calculated daily. Square Financial Services states the rate exceeds the national average savings account rate by more than eight times, based on the FDIC's published national average of 0.39% APY.

Square Savings accounts offer no minimum deposit requirements to open and charge no monthly fees. The accounts provide FDIC insurance coverage up to $2.5 million through a deposit sweep program that distributes funds among multiple partner banks.

"This rate reflects our confidence in the Square seller base as a source of stable, long-term deposits — and our commitment to returning real value to the small businesses that make that model work," said Richard Rosenthal, CEO of Square Financial Services.

Sellers can access the savings accounts through the Square Dashboard and configure automatic transfers from daily sales into savings folders for various business purposes. The service has operated for nearly five years, allowing Square sellers to manage savings from the same platform used for payment processing and business management.

Square Financial Services plans to introduce an automated sales tax folder feature that will automatically transfer collected sales tax from eligible card sales into a dedicated savings folder. The company has not announced a specific launch date for this feature.

Square Financial Services operates as a Utah-chartered industrial bank regulated by the Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions.