Robinhood Cash Management Review

Chanelle BessetteSep 20, 2021

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Robinhood Cash Management
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This article provides information for educational purposes. NerdWallet does not offer advisory or brokerage services, nor does it recommend specific investments, including stocks, securities or cryptocurrencies.

Robinhood Cash Management is a feature of Robinhood’s brokerage account and an opportunity to earn a solid 0.30% annual percentage yield (APY) on your cash.

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.

Where Robinhood Cash Management shines

Where Robinhood Cash Management falls short

  • Solid 0.30% APY.

  • No monthly fees or minimum balance.

  • FDIC-insured through third-party banks.

  • Includes debit card and access to more than 75,000 free ATMs.

  • Limited customer service options.

  • No cash or check deposit.

  • No rebates for out-of-network ATM fees.

Product features

4.5/5.0

Upsides

There are no maintenance fees or minimum balances. Robinhood doesn’t charge any monthly fees for the Cash Management feature of its brokerage account, and there are no minimum balance requirements. However, fees may apply to the brokerage account 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.

Downsides

No rebates for out-of-network ATM fees. Some cash management accounts — such as Betterment Cash Reserve 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.

Customer experience

4.0/5.0

Upsides

Good quality website. 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.

Robinhood Cash Management
NerdWallet rating 
Read review

Downsides

Limited customer service options. Robinhood is an online-only financial service provider, so customers do not have access to in-person support. 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.

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