Cash App launches kids accounts with 3.25% APY, no Bitcoin

Cash App launched managed accounts for children ages 6 to 12 on Tuesday, offering 3.25% APY on savings. Parents keep full control over account activity, must approve transfers, and the accounts do not permit Bitcoin. The feature is not available in New York.

Parents can open and oversee child accounts within the Cash App platform and select up to five trusted contacts whose transfers require parental approval. When a child turns 13, the account can convert to a sponsored teen account with parental consent; sponsored teen accounts may include Bitcoin trading if a parent allows that asset. A Block spokesperson confirmed the managed accounts for younger children do not include crypto functionality.

Cash App cited a Harris Poll survey of parents that found 89% of Generation Alpha children are actively saving. Parents reported digital and gaming purchases as the most common savings goal at 34%, followed by personal technology and toys or collectibles at 32% each. The survey also found 77% of parents have begun money-management discussions with their children, and half of Cash App-using parents said they already manage money on their kids’ behalf. Cash App serves more than 5 million teens on a monthly basis.

Parents can set spending limits, approve transfers and monitor account activity from their own Cash App profiles. The controls keep account access centralized with adults while giving children a basic savings experience.

Owen Jennings, Block’s executive officer and head of business, described the managed accounts as a way to give kids access to real financial tools and experiences while keeping parents fully involved.

Cash App is owned by Block Inc. The company has expanded beyond peer-to-peer payments to include banking features, investing options and Bitcoin trading. Block has also released Bitcoin-related products such as a hardware wallet and modular mining equipment. Earlier this year the parent company carried out a workforce reduction that cut more than 4,000 jobs as part of a broader corporate restructuring.

The managed accounts are rolling out to eligible users in states where Cash App operates, excluding New York. Parents can set up and monitor accounts through the Cash App app alongside other banking and payment services.