Jack Dorsey’s app launches interest-bearing accounts for kids

Twitter co-founder Jack Dorsey launched the fintech company Block, Inc. (NYSE: XYZ), formerly Square, Inc., in 2009.

A Bitcoin (BTC) advocate, Dorsey's Block has a suite of products that integrate the top cryptocurrency:

• Cash App, a wallet that allows Bitcoin investing
• Bitkey, a self-custody Bitcoin hardware wallet
• Proto, a Bitcoin mining system
• Square, a point-of-sale system for merchants with Bitcoin integration

On Apr. 21, Cash App introduced parent-managed accounts for kids aged 6-12. But these accounts, unlike those belonging to adult users, offer no Bitcoin services.

Nonetheless, these accounts for kids offer 3.25% interest on savings.

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What managed accounts for kids have to offer

CashApps' managed accounts let parents send allowances, set aside savings, and track spending for their children.

Block's executive officer and business head Owen Jennings said that Cash App serves more than 5 million teens on a monthly basis, and parents say they want to start building good money habits with their kids early.

"We built managed accounts to give kids access to real financial tools and experiences while keeping parents fully involved.”

These managed accounts for kids offer restricted features:

• Only parents can access managed accounts through their personal Cash App. Kids can’t access the app directly.
• Parents get real-time transaction alerts.
• Parents can automate recurring transfers from their account to their child’s accounts.
• Kids can receive money from up to 5 trusted contacts chosen by the parent.
• Once a kid turns 13, parents can convert the managed account to a sponsored account with more access, including the Bitcoin option. But the access would still require the parent's permission.

The service is not available in New York.

The company's stock was trading at $72.43 at the time of writing, down 1.98% in a day.

Related: Jack Dorsey slashes 40% of Block staff despite rising profits