Cash App Review 2023: Safely Transfer, Invest, & Save Money

Cash App is a mobile payment app that allows you to transfer money from your bank account and invest in stocks and Bitcoin all in one place.

As you explore the app, you’ll notice that it comes packed with features like direct deposit, a Cash App card, and more.

Moreover, the app boasts an array of security features, ensuring your financial transactions are secure and well-protected.

In this Cash App review, we’ll dive into its functionalities, benefits, and limitations to help you decide whether the app meets your financial needs.

Key Takeaways

Cash App is a holistic financial app offering services like money transfers, investing in stocks and Bitcoin, and receiving direct deposits.
Its user-friendly and ease of use have largely contributed to its widespread popularity
Features like a free Cash App debit card and cash-back rewards enhance the user experience and financial management.
Strong security measures offered by the app ensure that financial transactions are safe and protected.
Despite these benefits, some users have reported issues with the Cash App customer service in resolving transaction disputes.
There are transaction fees for instant transfers and some other fees to consider.
Cash App isn’t available outside the U.S. or to people under 18 years old.

Cash App Review

What It’s For

Cash App is a popular mobile payment app in the U.S., designed for seamless peer-to-peer transactions using your smartphone.

Cash App enables you to transfer and receive money, making it easier to split bills, pay back friends, or send gifts – all from your phone.

It’s mainly a money transfer service with a few extra perks.

The main functions of a Cash App account are:

Sending money
Receiving funds
Investing cash
High-yield savings account

How Cash App Works

Here is more about the main functions of Cash App and how to use them:

Sending Money

Most people use Cash App to send money back and forth.

You can also send money to small businesses and use Cash App for payments- like a gift from a craft show or a drink at the fair.

Using Cash App to send money is simple once you’ve linked a debit card or bank account.

To send a money transfer, open the app and follow these steps:

Open your Cash App account.
Enter the amount you want to send.
Tap “Pay” at the bottom-right corner.
Enter the recipient’s $Cashtag, phone number, or email address.
Add the reason for the payment (optional).
Tap “Pay” again to confirm the transaction.

When sending funds, remember that fees might be associated with your transaction depending on the speed and type of payment.

But Cash App lets you know what fees apply, and you go through your payment, so it’s upfront with everything.

And Cash App payments can’t be canceled once initiated, so make sure you’re sending money to the right person!

You’ll also be fine if you have $0 in your Cash App balance.

It draws money from your debit card or bank account instantly, so it’s not like you’ll have overdraft fees or anything.

Receiving Funds

Now, if you can send money, that means others can also send it to you; you can receive funds, no problem, with Cash App.

This is great because you can cover your friend’s dinner when they forget money, but they can send you money digitally in a snap.

To receive funds on Cash App, use your unique $Cashtag, linked phone number, or email address.

Share your $Cashtag or linked info with the sender, and they can transfer funds to you.

You can even become friends in the app to make it easier next time.

When you receive a payment, it’ll appear in your Cash App balance.

You can then decide to leave the money there or transfer the money to your bank account.

I recommend transferring money frequently so you can have money in the bank to pay back the bills whenever needed.

For increased security, enable Cash App notifications on your device to be alerted whenever you receive funds or someone requests money.

Investing Cash

Cash App allows you to invest in stocks and Bitcoin, and it’s helpful whether you’re a beginner or an experienced investor.

To get started:

Tap the investing icon (a small building) on the app’s main screen.
Choose between stocks or Bitcoin.
Browse available stocks or enter a specific stock symbol.
Enter the dollar amount you want to invest.
Confirm your purchase.

Remember only to invest what you’re willing to risk, as investments can fluctuate in value.

Learn more about investment strategies in my How To Invest article!

High-Yield Savings Account

Cash App offers a High-Yield Savings Account (HYSA) feature for users to earn interest on their account balances.

Simply activate the HYSA feature within the app and add money to it to start your savings.

There’s no minimum balance to earn interest and no fees on your Cash App account- nothing takes away from your savings!

With an HYSA, you can grow your savings faster than traditional savings accounts, but note that interest rates might change over time.

You can also sign up for the Cash App Cash Card.

It’ll round up your purchases to the nearest dollar and automatically put the difference in savings.

So if you spend $67.20 on groceries, the Cash Card will round it to $68 and put $0.80 in your savings account.

Who Can Use Cash App

You can only have a Cash App account in the United States, not overseas, and you must be over 18.

Then, users will need a smartphone with a valid mobile number plus an email address for signup.

Simply download the app, create a Cash App account, and set up a linked bank account or debit card.

Fees & Taxes

Cash App is mainly free to use for sending and receiving money.

Standard transfers to your debit card, which take 1-3 business days, are free.

There are also no foreign transaction fees, like some apps.

Cash App users may encounter a few fees, though:

Instant transfers: 1.5% fee
Credit card payments: 3% fee
Business transactions: 2.75% fee
ATM Fees: $2.50 per transaction

Please note that you may be responsible for reporting your Cash App transactions for tax purposes.

Cash App can actually help you with that now that they offer tax filing services.

Customer Support

Cash App customer support is available in multiple ways, 24/7.

They provide a comprehensive support center that addresses common concerns and issues.

Cash App users can also contact their customer support team through the app or website.

Their in-app and online help ensures prompt and efficient assistance.

But if you want more hands-on help, so to speak, they have a 1-800 number on their support center page that you can contact.

Security & Privacy

Cash App prioritizes the security of your personal information and financial transactions.

It employs encryption, fraud detection, account notifications, and Touch ID/Face ID verification to keep your account safe.

However, enabling these features and practicing vigilance in protecting your information is essential.

Another thing to note is that your money isn’t FDIC-insured unless you have a Cash Card.

Your Cash Card is a debit card that would be connected to an insured bank account, and it insures your money up to $250,000.

Setting Up An Account

To set up an account on Cash App, start by downloading the app on your phone and follow the onscreen instructions to create your account.

You’ll need to provide your phone number or email address to sign up for verification purposes.

Once you receive the verification code, enter it in the app to verify your account.

Next, you’ll be prompted to link a debit card or credit card to your Cash App account to use it for payments.

Keep in mind that not all cards may be compatible, so it’s best to use a major credit card or debit card.

In addition to linking a card, you could also connect your bank account. This is necessary to transfer money in and out of Cash App.

To do this, provide your online banking username and password, allowing the app to securely access your account information.

Once your card and bank account are linked, you can create a unique identifier known as a $Cashtag (aka, your username).

Lastly, you might be asked to provide your Social Security Number (SSN) to verify your identity and comply with financial regulations.

Rest assured, Cash App has strict security measures in place to keep your information safe.

Now that your account is set, you can explore Cash App’s features and start sending, receiving, investing, saving, and managing your funds with ease.

Similar Apps

My Cash App Review would never be complete without listing similar apps to Cash App.

You aren’t limited to using only Cash App– dozens of payment apps can help you transfer money or get direct deposit!

Here are the best apps like Cash App you may want to consider:

PayPal

PayPal is a widely-known payment platform that allows you to easily send and receive money.

A user-friendly interface lets you quickly pay or request money from friends or businesses.

Some standout features include setting up one-time or recurring payments and creating shared bills with other users.

PayPal also offers Buyer and Seller protection, providing security for both parties involved in transactions.

Venmo

Venmo, owned by PayPal, is a popular alternative for peer-to-peer money transfers.

I think it’s very similar to Cash App, where you have a linked bank account for funds.

Besides sending and receiving money, you can also split bills and make payments at participating retailers.

The app provides a social feed, displaying transactions between your connected friends, but keeps monetary value hidden.

One downside: Venmo charges a 3% fee for sending money via credit cards, while other payment methods are free.

Zelle

Zelle stands out for its quick transfer speed, as it’s integrated into participating banks’ mobile apps.

If you have an account at a Zelle-participating bank, it may be useful for quick transfers.

Transactions between two Zelle users generally get processed within minutes.

Although this app is excellent for money transfers, it lacks some of the features found in other options, like paying businesses for goods and services.

Google Pay

Google Pay is Google’s own payment service, allowing you to send and receive money with ease.

The app is secure, linking your bank account or debit card while protecting any sensitive information.

This platform also offers rewards for using certain retailers linked to your account.

You can store loyalty cards within Google Pay to quickly access discounts at participating businesses.

Apple Pay

Apple Pay is Apple’s own payment service, accessible through the Wallet app on iOS devices.

It allows you to send and receive money from iTunes accounts and pay for items at participating retailers using your iPhone or iPad.

Additionally, you can store your credit cards and loyalty cards in the app for quick access.

Apple Pay doesn’t charge fees, but you’ll need to link a compatible credit or debit card and have an Apple ID to use it.

The app uses Touch ID or Face ID authentication to verify transactions, making it a secure payment option.

Samsung Pay

Samsung Pay is a digital wallet specifically designed for Samsung smartphones.

This app lets you make contactless payments by either tapping or hovering your phone over a payment terminal.

A unique feature is the ability to store not just credit or debit cards but also membership or reward cards.

Security-wise, Samsung Pay uses biometrics like a fingerprint or iris scanner to authenticate payments.

FAQs

Is Cash App safe to use?

Yes, Cash App is safe to use.

It employs advanced security measures such as encryption and fraud detection to protect your information and transactions.

Cash App also complies with various financial industry regulations, providing more security for your money.

Always double-check the recipient’s information before sending money to ensure it goes to the correct person.

Is there a limit to how much money you can send?

Cash App does have sending limits based on your account verification.

Unverified users can send up to $250 within 7 days and receive up to $1,000 within 30 days.

Verified users can send up to $7,500 per week and receive an unlimited amount.

This doesn’t set a limit to your Cash App balance.

But because your account isn’t FDIC-insured, I recommend transferring your money back to the bank often.

Can I get free money on Cash App?

It’s possible to get free money on Cash App, but you need to be careful of where you receive money from!

A Cash App user won’t suddenly wake up to random funds in their account without it possibly being a scam.

It’s different from receiving money from online surveys or freelance skills and getting paid via Cash App for microtasks.

But the main reason you’d get free money on Cash App is through investing and savings.

Your money would be put to making more money passively.

Does Cash App loan money?

Cash App doesn’t offer traditional loans or give you money; however, it does provide a feature called Cash App Borrow.

Eligible users can borrow up to $200 for a short period.

This feature isn’t available to all Cash App users, and eligibility criteria and interest may apply.

Can I open a high-yield savings account on another app?

Yes, you can open a high-yield savings account on other financial apps besides Cash App.

Your regular bank account may offer some interest on your savings, but it’s usually around .43% APY, which is the average.

Many neobanks and financial technology companies offer high-yield savings accounts with competitive interest rates.

My favorite HYSA is through Chime– it offers 2% APY, so every $100 in my savings leads me to earn an extra $2 of free money right away.

I think Cash App Savings is fine, but I like the consistency of Chime and prefer it- read more about it in my Chime Review!

Final Thoughts

Cash App can be a convenient way to manage your finances and make transactions.

Its user-friendly interface allows you to send money, receive payments, and even invest in stocks or Bitcoin.

You can get money fast, whether someone is paying you for freelancing work or paying you back for dinner.

Cash App can make it easier for you to access your money and ensure you never miss important payments or bills.

However, it’s important to consider the fees associated with Cash App, especially if you’ll use instant transfers frequently or use the card at ATMs.

But overall, Cash App offers a variety of benefits for users who are looking for a straightforward mobile banking and payment solution.