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Robinhood’s New Feature Grants You Interest and a Fancy Card
For those who’ve been on Robinhood’s waiting list for its Cash Management feature — today is your lucky day. Robinhood is releasing the Cash Management feature to all of its customers.
The feature combines the cash deposits you make into the app with a checking account — allowing users to earn interest on uninvested cash. Robinhood will also send you a debit card connected to that fund storage, so you can spend directly from the account rather than transferring the sums to another account. Similarly, you can set up auto-pay for bills through the account.
Only about one million people (of its approximately 13 million users) are enrolled in Robinhood’s Cash Management feature. According to a Robinhood spokesperson, the feature has earned customers over $2.5 million in interest in 2020.
As of March 16, 2020, the APY is 0.30% on your uninvested cash via a Deposit Sweep program, with interest compounding daily. There’s also no account minimums, no transfer fees and no foreign transaction fees.
Too long, didn’t read?
With the integration of its Cash Management feature in their mobile app, Robinhood intends to create a convenient way for customers to earn interest on their money while waiting for the right market opportunity. Cash kept in the program is covered by FDIC insurance up to $1.25 million. Robinhood is an investing and stock trading app that operates commission-free. It’s user-friendly platform earned the service a top spot in our lineup of best online stock trading brokers.
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