Robinhood is a mobile stock trading app that offers commission-free trades. With its recent announcement, it will offer cash management services for those who don’t want to sell their stocks. The company says the service will charge no fees and be available in all states by September 2018.
The “robinhood cash management bonus” is a new feature that allows users to earn 1.00% APY on their idle cash.
On idle cash balances, get 1.0 percent APY. A Robinhood brokerage account is required initially.[Update 10 May 2022: Following the FED meeting on May 4, numerous banks and credit unions have began to raise their savings and CD rates. Robinhood followed suit, increasing their idle cash APY from 0.50 percent to the current 1.0 percent. [Continue reading below.]
The Cash Management at Robinhood account, like other cash management accounts we’ve explored this year, combines the finest features of a checking and savings account while not being a bank.
Cash Management at Robinhood, on the other hand, takes use of numerous banks’ FDIC protection by sweeping your assets into partner institutions at the end of each day.
Continue reading our evaluation below to determine whether this account is perfect for you.
This article will teach you:
Cash Management at Robinhood is a completely free service that requires no minimum deposit or balance. However, you must first register a brokerage account before activating the cash management solution, which may include expenses such as transfer fees or other account service fees. Fees for Robinhood are discussed lower down in this page.
Interest Rates and Annual Percentage Yield
Robin Hood Cash Management, like all other competing cash management accounts, provides a good APY (annual percentage return) on your idle money.
When Robinhood originally launched this product, it offered one of the highest interest rates available, even beating even the best online savings and money market accounts. While the yield is still competitive today, it is substantially lower.
|$0||1.25 million dollars||1.0%|
According to current FDIC statistics, the average annual percentage return on a savings account and an interest checking account is only 0.06 percent and 0.03 percent, respectively.
Here’s a short comparison of the best cash management accounts on the market to Cash Management at Robinhood.
|Institution/Account||FDIC protection||Card de débit||APY|
|Money from SoFi||1.5 million dollars||Yes||1.25%|
|Cash Account at Wealthfront||a million dollars||No||0.85%|
|Enhance Your Everyday Cash Reserve||a million dollars+||Yes||0.35%|
|Aspiration Spend & Save||$2,000,000||Yes||3%–5%|
|Cash Management with Fidelity||1.25 million dollars||Yes||0.01%|
|Cash Management at Robinhood||1.25 million dollars||Yes||1.0%|
One point that deserves repeating is that you must open a Robinhood brokerage account first before opening the Cash Management at Robinhood. That is not the case with every other cash management account on the list above. All of these except Robinhood can be opened as stand alone accounts.
Cash Management at Robinhood is loaded with perks and benefits combining the best of checking accounts and savings accounts into one tidy package. It does, however, come with some drawbacks and disadvantages that traditional savings and checking accounts may not.
The following is a comprehensive list of current features:
- According to the FDIC, this APY is 6 times the national average.
- There are no deposit or monthly balance minimums.
- There is no monthly service cost.
- Free Card de débit
- There are no costs for using an ATM outside of your network (ATM owner fees may apply)
- There are no international transaction costs.
- No fines for overdrafts
The absence of international transaction fees is perhaps the most striking item on this list. This is a one-of-a-kind perk that may be quite valuable if you often travel outside the nation.
Robinhood uses the Allpoint and MoneyPass ATM network for free usage at over 75,000 access points. Robinhood also never charges for out-of-network ATM usage but the ATM owner may impose a fee for using your Robinhood Card de débit in their machine(s). Many cash management accounts such as Fidelity and others reimburse these fees worldwide, but Robinhood does not currently.
Here are some additional disadvantages of Robin Cash Management to consider:
- No compensation for out-of-network ATM use
- You must first create and maintain a Robinhood brokerage account.
- Customer support is minimal, and internet consumers have given it bad ratings.
- Outages are reported often.
- There are no possibilities for depositing cash or checks.
Because you’re obligated to open a Robinhood brokerage account in order to take advantage of Cash Management at Robinhood, you may encounter some fees on that side from time to time depending on the account activities you make.
The fees that Robinhood charges for account services and transfers are shown below.
|Transfers of Debit Balances||$0|
|Returned Check, ACH, Wire & Recall/Stop Payments||$0|
|Wire Transfer Domestic||$0|
|Wire Transfers Across Borders||$0|
|Domestic Check Delivery Overnight||$20|
|Electronic Statements & Confirms||$0|
|Statements on Paper||$5|
|Domestic Express Mail||$20|
|Overnight International Mail||$50|
|CRS Paper Form||$0|
The stock trading side of the brokerage account has its own set of costs. For further information, you can download their whole cost schedule here.
After you’ve downloaded the app and opened your standard Robinhood brokerage account, you can now apply for Cash Management at Robinhood. Do to this, first:
- Once you’ve signed into your Robinhood brokerage account, click the wallet symbol at the bottom of the screen.
- Select “join waitlist” from the drop-down menu.
- Select Card de débit design from four options.
- Review and sign the terms and conditions, account disclosures, and customer agreement forms for Robinhood.
- Once approved (this took approximately 1 minute for us) then you may fund the account. If you have already funded the brokerage account, then your idle funds will automatically apply to the Cash Management at Robinhood and earn the advertised APY while idle.
Robinhood is a stock trading platform that offers zero commission on trades. However, they now offer 1% APY on idle cash. Reference: robinhood apy reddit.
- robinhood cash management waitlist
- robinhood swept cash reddit
- deposit sweep balance robinhood
- robinhood cash management instant deposit
- is robinhood cash management good reddit