Earn 3% on your money. Pay no fees.
Whether you keep your money in checking or savings, you’ll get the same 3% on every dollar. That’s an extra $240 every year for the average American with $8,000 in the bank.
With Robinhood, you get more for your money—starting with the very first dollar.
3% interest for a checking account and no account fee, awesome!Cons:
Your money is not insured by SIPC or FDIC
Awesome concept, but this is a bank account without protection. Although Robinhood claims these accounts will be SIPC-insured, the head of the SIPC says they are not: https://www.bloomberg.com/news/articles/2018-12-14/sipc-says-it-has-serious-concerns-about-robinhood-s-new-product.
PS: SIPC is like FDIC but for the balance held in a brokerage account intended for purchasing securities. Different agency, different protections, and apparently not covering Robinhood who is trying to game the system. Hopefully they can figure this out, I am excited for a Robinhood bank account!Tyler Makin has never used this product.