A Venmo account is not a savings account, but rather a type of digital wallet that allows you to send and receive money electronically. It is more similar to a checking account, as it is primarily used for everyday transactions and does not typically offer interest on the funds held in the account.
I remember when I first signed up for Venmo, I had to link it to my checking account. This is because Venmo requires a funding source to transfer money to and from the account. It is important to note that Venmo does not currently support linking to savings accounts.
The reason for this is likely due to the restrictions placed on savings accounts by federal regulations. Traditionally, savings accounts have had a limit of six online withdrawals or transfers per month. These limitations were put in place to encourage people to save money rather than use their savings accounts for frequent transactions.
While some banks have lifted these restrictions on savings accounts after the federal regulations changed in 2020, it seems that Venmo has not yet implemented the option to link a savings account. This could be because Venmo is primarily designed for everyday transactions and may not have the same level of functionality as a traditional banking account.
When it comes to funding your Venmo account, it is important to link a checking account instead of a savings account. This ensures that you have easy access to your funds and can make transactions without running into any limitations or restrictions.
A Venmo account is not a savings account but rather a checking account. Therefore, when setting up your Venmo account, it is important to link a checking account rather than a savings account to ensure smooth and unrestricted access to your funds for everyday transactions.