On a similar note...
On a similar note...
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Robinhood Cash Management is an opportunity to earn a solid 0.30% APY on your cash. A feature of Robinhood’s brokerage account, it's currently being rolled out via waitlist to existing customers; new customers must open a regular brokerage account before they can join the waitlist.
Like other cash management products, Robinhood Cash Management is not a bank account, despite its features being similar to those of a checking or savings account. To provide Federal Deposit Insurance Corp. protection to customer funds, Robinhood sweeps the money to partner banks behind the scenes, thereby extending the federal insurance that banks typically provide.
» Want to look at more options? Check out NerdWallet’s list of best cash management accounts
Where Robinhood Cash Management shines
Where Robinhood Cash Management falls short
There are no maintenance fees or minimum balances. Robinhood Cash Management doesn’t charge any monthly fees for the feature, and there are no minimum balance requirements. However, fees may apply to the brokerage account that the Cash Management feature is a part of, including transfer fees, trading fees and other account services.
Solid interest rate. Robinhood Cash Management’s 0.30% APY is a decent interest rate, rivaling some high-yield online savings accounts.
Customers can fund their accounts through bank transfer or direct deposit. There are a couple of ways to fund your Robinhood account, including linking a bank to transfer funds and setting up a direct deposit of your paycheck into your Robinhood account.
Robinhood Cash Management comes with an optional debit card. Robinhood works with Sutton Bank to issue Mastercard debit cards to its Cash Management customers. It’s available either as a physical card or as a virtual card that can be used with Apple Pay, Google Pay or Samsung Pay.
No ATM rebates. Some cash management accounts — such as Betterment Everyday and Aspiration Spend & Save — reimburse some if not all ATM fees. Robinhood has more than 75,000 Allpoint and MoneyPass ATMs in its network, and it has more than 15,000 in-network ATMs outside the U.S. that customers can withdraw cash from fee-free, but it won’t reimburse fees from out-of-network ATMs.
No cash or check deposit. Robinhood doesn’t currently support cash or check deposits.
Other things to consider
You need to have a Robinhood brokerage account to access the Cash Management feature. Cash Management is an optional feature within the Robinhood brokerage account, so in order to take advantage of earning the 0.30% APY on their cash, customers must have a brokerage account.
Good website quality. Information about Robinhood’s various services and features is easy to find on its website and includes a thorough FAQ section.
Solid app ratings. Robinhood’s app performs relatively well on both Apple and Android. However, the app experienced several highly publicized, temporary outages in early 2020.
Limited customer service options. Robinhood is an online-only financial service provider, so customers will not have access to in-person service. Though its FAQ section is robust, the primary way to receive customer service is by sending a message via Robinhood’s “Contact” page, allowing the company to follow up by email. There is no chat function or phone number for quicker service. The company does, however, have a Twitter page specifically for customer support.