New square account to use square savings?

[FLSNJ]

Ok so explain this one to me. 

A few years ago I setup a square savings account. Got sidetracked with work, never set it up to take in any funds etc. Square closed the account due to inactivity. 

I would now like to use it to set aside a percentage of sales to cover sales tax without me having to think about it. When I try to go to savings it just says account closed and keeps cycling the same webpage over and over. 

I call customer support and say I’d like to setup a new savings account or reopen the old one. They tell me they can’t reopen the account that was closed, and if I want to create a new savings account, I HAVE TO MAKE AN ENTIRELY NEW SQUARE ACCOUNT. 

Wtf?  I processed close to 400k in sales last year, square made 12k on those fees, and they can’t just setup a new savings account for my existing square account?

who’s running this clown show? 

[TheRealChipA]

Hi @FLSNJ.  Different banks have different policies about allowing new accounts to be opened after having one closed by them.  It seems that Square's policy is not to allow a savings account to be opened once one has been closed due to inactivity.  According to banking regulations, this is acceptable, though I'm not sure how wise it is on their part.

Anyway, just in case there is some secret trick to get around this, I'm going to tag the Square moderators here in the Community.  One of them will get back with you.  If they do, I'd recommend being a little nicer and losing the bad attitude shown in your last sentence above.  It is not necessary and won't help get your task done here.  While I understand your frustration, in the end if Square's policy is what it seems to be, your only recourse would be to open a savings account elsewhere.  You and I can't change that fact, especially with snark.  

@Kassi_@RSosebee1@_Violet@MayaP@Summer2024@Summer2024@Ellie_@Katie_SQ@Laurie_@Sammie_C

[Briansappliance]

Was there ever a response from the moderators about this? I am in the same predicament unfortunately. Thank you! 

[TheRealChipA]

@Briansappliance @Summer2024's response WAS from a moderator.  She confirmed what I suspected and that is that once a savings account is closed, it can't be reopened, nor can another be created for that Square account.  No one is going to divulge whether or not there are any plans on the product roadmap, but currently you can't do what you want to do with your current Square account.

[Briansappliance]

Thank you for the fast response.

[Summer2024 · Accepted solution]

Hi, @FLSNJ ! 

You're right to be frustrated. Let me break down what's happening here:

Regulatory Requirements

• Square Savings is actually operated through Square Financial Services, their banking division
• As a banking entity, Square is subject to strict regulatory requirements
• Once an account is closed for inactivity, regulatory compliance prevents simple "reopening"

Alternative Solutions Instead of dealing with this limitation, you might want to consider:

• Using Square's automated transfers feature to automatically move a percentage of sales to a separate regular bank account
• Setting up rules-based transfers through your existing bank
• Using a third-party accounting tool that can automatically calculate and set aside tax portions

I hope this helps provide some context.