Cash App Review [2024]: Is it a Safe Way to Send and Receive Money?

If you’ve ever been out with a large group, chances are you’ve had someone ask to send you their share of the tab via Cash App. This financial app simplifies the process of transferring money or paying a friend with a credit card. With just a few clicks, you can send and receive money for free when using a linked bank account or for a 3% fee when using a credit card.

What is Cash App?

Cash App is a financial app created by Block, Inc. (previously known as Square, Inc.) in 2013.

Cash App isn’t a bank, but it offers banking services.¹ <p>Cash App is a financial platform,&nbsp;not a bank. Banking services&nbsp;provided by Cash App’s bank&nbsp;partner(s).</p> This allows you to deposit funds into your Cash App banking account, including direct deposits. The Cash App account balance is FDIC-insured through Cash App's partner banks.² <p>Balance is FDIC-insured through&nbsp;Wells Fargo Bank, N.A., Member&nbsp;FDIC for up to $250,000 per&nbsp;person.</p>

The mobile app is available for iOS and Android and is perhaps the most popular for sending peer-to-peer payments. Cash App gets high praise from users who give it a 4.8-star rating in Apple's App Store.

Cash App also offers tax filing and banking services such as a savings account, direct deposit, and debit card (Cash Card).³ <p>Prepaid debit cards issued by&nbsp;Sutton Bank.</p> Cash App had 55 million users in 2023, and it ranks first in the App Store finance category.

> Enter to win a $300 Cash App deposit

Cash App basics

Who is Cash App best for?

People needing to pay a friend

Cash App is one of the best money apps for person-to-person transactions between friends and other people you trust. There’s no need to remind your roommate to pay their share of the rent or utilities each month. Instead, you can just send them a Cash App payment request.

Another app that works very similarly is Venmo (that’s what I used this summer to reimburse my friend for shared travel expenses). Learn how Cash App and Venmo compare.

People with $300 in monthly direct deposits

If you have at least $300 of monthly income that you can send to Cash App via direct deposit, you’ll be able to maximize your benefits with the platform. You need those direct deposits in order to get fee-free ATM use and earn 4.00% (as of 12/10/224) APY on your savings.⁴ <p class="">The product and annual percentage yield (APY) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your area. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. Always verify account details and availability with the financial institution before opening an account.<br></p>

People seeking free tax filing services

Cash App Taxes is a respected service for free federal and state tax filing in the U.S. The program will do all of your calculations following strict security standards to provide your maximum refund, guaranteed. They are an authorized IRS e-file provider. That said, Cash App only offers one basic tier of tax service that isn’t appropriate for all tax filers.

Using Cash App for business transactions

For businesses and retailers, the personal Cash App account may not be ideal for many transactions. It’s free to use, but you can only send up to $1,000 in a 30-day period until you go through the steps of verifying your account.

Plus, tracking dozens of Cash App payments could be an accounting and logistical nightmare. Cash App has a Cash for Business version that you can upgrade to that charges a 2.75% transaction fee for each payment received.

Is it safe to send money with Cash App?

According to the Cash App website, payment information is encrypted and sent through secure servers. It is also PCI Data Security Standard Level 1 compliant.

As with any financial app, you should take precautions. Cash App recommends password-protecting your phone and enabling the in-app security lock, which will require a PIN or touch ID for each transaction.

Be on the lookout for scammers, as you can’t cancel or recoup payments sent to someone’s Cash App. Always check their $CashTag and identifying details before you send money.

Practice wisdom with your personal information. The Better Business Bureau has warned that Cash App’s customer support won’t ask you for your sign-in code, payments, or other sensitive information via social media or on the phone. In addition, you should be wary of any business claiming they only accept Cash App payments.

Another option for security is to link the app to a credit card, since your card issuer may offer additional protection or reimbursement in case someone tries to get your money fraudulently.

Cash App features you might not know about

• Cash Card: You can use this Visa debit card anywhere Visa cards are accepted. Cash Cards are free and offer access to instant discounts, personalized designs, and Cash App Savings.
• Round Ups: You can use Round Ups to automatically round up your purchases to the nearest dollar. The extra money is then put into your Savings account or invested in stocks or bitcoin.
• Direct deposit: You can receive your paycheck up to two days early when you take advantage of direct deposit with Cash App.
• ATM access: You can withdraw money from any ATM. To avoid Cash App ATM fees, use in-network ATMs and have monthly direct deposits of at least $300.
• FDIC insurance: With a Cash Card, your Cash Balance receives up to $250,000 FDIC insurance.
• Gift cards: Send and receive gift cards from popular retailers through Cash App. You can use your Cash Balance to send gift cards. If you have a Cash Card, you can convert gift card balances of $10 or below to cash. There are no fees for sending and receiving gift cards with Cash App.
• Investing: Cash App allows you to buy stocks and bitcoin.

What the app could improve

• ATM fee: If you don’t have direct deposits of at least $300 per month, you have to pay a Cash App fee of $2.50 per ATM withdrawal. That could be in addition to any service fee an ATM operator might charge you.
• Paper money deposit fees: While you can deposit paper money at a number of retailers, each transaction comes with a $1 fee.
• Cash App Savings requirements: While the savings account is nice to have, you must meet several criteria: have a Cash App Card to earn 1.50% (as of 12/10/24) APY on savings, plus $300 in monthly direct deposits to raise that to 4.00% (as of 12/10/224) APY. It’s a good rate, but your rate drops if you don’t meet the criteria each month.

How does Cash App work?

Cash App has four main functionalities: sending money, receiving money, mobile banking, and investing.

1. Sending money

All you need is the recipient’s email address, phone number, or $Cashtag to send cash. The $Cashtag is the name that each Cash App user sets up within their app profile.

Decide where the app will withdraw from: your Cash App balance, linked bank account, debit card, or credit card. Cash App accepts Visa, MasterCard, American Express, and Discover, but you’ll pay a 3% transaction fee for credit card payments.

Be aware that while you can initiate a payment to someone even if they don’t have CashApp yet, they’ll have to create an account within 14 days to accept payment.

You can send up to $1,000 within a 30-day period, but that limit will increase if you verify your name, date of birth, and the last four digits of your Social Security number. I wouldn’t need to do that, but if you do a lot of peer-to-peer transactions, this might be useful.

2. Receiving money

When you receive money, it goes into your Cash App account first, and then you can withdraw to a connected bank account or debit card.

A standard deposit shows up in your bank account within one to three business days, whereas an instant deposit to your debit card happens instantly but has a rush fee that ranges between 0.50% and 1.75%.

If you don't want to use bank account withdrawals, you can also request a no-fee Cash Card. The Cash Card is a Visa debit card that lets you use Cash App funds for purchases and offers discounts on products and services.

There’s a $2.50 fee if you use the Cash Card at an ATM, plus the ATM servicer may charge a fee as well. ATM fees are waived if you stick to in-network ATMs and have a minimum of $300 a month in qualifying direct deposits.

Safe and free way to send, spend, and save money

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3. Banking services

Besides receiving payments from friends, Cash App offers a variety of banking features to its users, including the Cash Card and direct deposit. (More details above)

4. Investing

Cash App Investing enables you to invest in fractional shares of stocks and ETFs for as little as $1 with no commission fees. This feature is available only to U.S. residents who are 18 years or older. To sign up, you need to provide Cash App with your full name, date of birth, Social Security number, address, and employment information.

If you’re new to investing, be sure to learn the basics of how to invest money before diving in.

Cash App also supports cryptocurrency. However, the only cryptocurrency it supports is Bitcoin, which you can buy and sell within the app. You can also deposit Bitcoin or withdraw it to an external wallet.

FAQs

Alternatives to Cash App

Payment apps

If you want different options for sending money to other people, consider Venmo and Zelle. Neither of these apps can match the level of banking services¹ <p>Cash App is a financial platform,&nbsp;not a bank. Banking services&nbsp;provided by Cash App’s bank&nbsp;partner(s).</p> that Cash App provides, but they work well as payment apps.

Venmo is primarily a payment app but also offers debit and credit card options. The debit card can be used anywhere Mastercard is accepted, while the credit card uses the Visa card network.

Learn about the best credit cards for Venmo.

Zelle is a payment app that integrates with U.S. banks to send and receive money between bank accounts. If you use any major U.S. banks, you may have already seen an option to use Zelle in your banking app.

High-yield savings accounts

To earn the highest interest rate on your Cash App Savings balance, you need to be 18 or older, have a Cash App Card, and direct deposit at least $300 monthly into Cash App. You will be paid a lower interest rate if you don't meet these requirements.

Alternatively, you could consider these best savings accounts instead.

Featured High Yield Savings Accounts

4.8

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Earn up to 4.75% APY

Earn up to 4.75% APY⁵ <p>LevelUp Rate of 4.75% Annual Percentage Yield (“APY”) is applied to the full balance of LevelUp Savings accounts that receive a total of at least $250 in deposits during the Evaluation Period. Otherwise, accounts will earn the Standard Rate of 3.75% APY. Interest payments, account bonuses, account credits and reversals or refunds from the bank are not considered deposits for rate evaluation purposes. All LevelUp Savings accounts earn the LevelUp Rate at account opening and continue to earn the LevelUp Rate until the First Evaluation Period, to provide an opportunity to set up deposits. </p> <p>An Evaluation Period is a statement cycle. The First Evaluation Period will be the third statement cycle after you open your account, with any rate change becoming effective the next statement cycle. For example, if you open in August, the first Evaluation Period would be October with any rate change effective in November. Any rate changes will take place on the second business day and will be based on deposits in the previous statement cycle. </p> <p>APY accurate as of 11/25/2024. Rates are variable and subject to change at any time without notice, at the sole discretion of the bank. Fees may reduce earnings. $0 minimum opening deposit.</p> when you open a new LevelUp Savings account and deposit $250+ per month. Member FDIC.

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SoFi Checking & Savings - Earn Up to $300 When You Set Up Direct Deposit

Earn up to 4.00% APY⁶ <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) <b>OR</b> $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="http://sofi.com/banking">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p> <p>SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a></p> and collect up to a $300 cash bonus with direct deposit or $5,000 or more in qualifying deposits.⁷ <p>SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a></p> FDIC Insured.⁸ <p><b>SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a></b></p>

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Bottom line

The awkward situation of trying to split the check among members of a group is just one instance that Cash App can simplify.

Cash App has made it easier to navigate this situation — pay with your credit cards, collect the points, and have everyone else send you money through Cash App. Unlike other peer-to-peer payment tools, Cash App also offers banking and investment products.

The app does have some limitations and you do need to be careful to only send payments to those you trust.

Get 6% Yield or more on bonds, 4.6% APY⁹ <p>Rate as of 9/27/24. APY is variable and subject to change.</p> on your uninvested cash, $0.06-$0.18¹⁰ <p>Investors must review the Options Disclosure Document (ODD): <a href="https://public.com/ODD">public.com/ODD</a>. Options are risky and not suitable for everyone. See Fee Schedule public.com/disclosures. Brokerage services for US-listed securities and options offered through Public Investing, member FINRA & SIPC. Supporting documentation upon request. Rebate rates vary monthly from $0.06-$0.18 and depend on the current and prior month’s options trading volume. See terms of the Options Rebate Program: <a href="https://public.com/disclosures/rebate-terms">public.com/disclosures/rebate-terms</a>. Rates are subject to change.</p> rebate on options contracts, and more

4.4

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Public Benefits

• Invest in stocks, bonds, options, ETFs, and more with no account minimum ¹¹ <p>All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Public Investing, Inc., member FINRA & SIPC. Public Investing offers a High-Yield Cash Account where funds from this account are automatically deposited into partner banks where they earn interest and are eligible for FDIC insurance; Public Investing is not a bank. Before investing in an ETF, you should read the prospectus, which provides detailed information on the ETF’s investment objective, principal investment strategies, risks, costs, and historical performance (if any), among other thing. Investment returns and principal value will fluctuate such that an investment, when redeemed, may be worth more or less than the original cost.</p>
• $0 commission charge on U.S. listed stocks & ETF trades placed during regular US market hours
• US-based customer support

4.4

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