Cash App Launches 3.25% Savings Accounts for Age 6-12, Block Cuts 4,000 Jobs
Cash App launched parent-managed accounts for children aged 6-12 offering 3.25% savings interest without Bitcoin access, convertible to teen accounts with crypto options at age 13, excluding New York. Block cut 4,000 jobs (40% of workforce) in February to boost AI efficiency as shares gained about 1.4% to under $75.
1. New Parent-Managed Accounts for Children
Cash App introduced managed savings accounts for 6- to 12-year-olds offering a 3.25% annual interest rate. These accounts provide basic banking functions without Bitcoin trading and are unavailable to residents of New York, targeting early financial education and habit formation.
2. Conversion to Teen Accounts and Crypto Access
Upon turning 13, these managed accounts can convert to sponsored teen accounts with parental consent. Teen accounts allow Bitcoin buying and selling if parents enable crypto functionality, extending Cash App’s service spectrum as users age.
3. Parental Control Features and Savings Trends
Parents retain full control, approving transfers from up to five trusted contacts. A recent survey found 89% of Gen Alpha children save money, with digital and gaming purchases leading savings goals, while 77% of parents discuss money management with their kids.
4. Workforce Reduction and Market Reaction
Block reduced its workforce by 4,000 jobs—about 40% of employees—in February to prioritize AI-driven efficiency. Following the announcement, Block’s shares rose roughly 1.4% to just under $75, reflecting investor approval of cost-cutting and growth initiatives.