Robinhood is no longer just a digital trading platform. Commission-free trading startup Robinhood has launched U.S. checking and savings accounts that pay a 3% interest rate, broadening the suite of financial products it offers, the company said on Thursday. They sent out emails and notifications through app to current members to get early access for the new accounts. You can also sign up for free for the trading platform and get a free stock.
With no overdraft or monthly fees, a pretty good 3% interest rate, and a claim of more US ATMs than the five biggest banks combined, Robinhood has a very solid offer. The accounts, which come with a debit card, will require no minimum balance, will have no monthly fees or deposits requirements and no foreign transactions and overdraft fees, Robinhood said.
The company, which is popular with young consumers for its commission-free stock trading app, will begin rolling out the accounts on Thursday and expects the majority of cards to start shipping in January 2019.
If it sounds too good to be true, then you should know that there’s a small “catch”. Robinhood does not have a bank charter so it’s not FDIC insured, but will offer its accounts through its broker dealer license. The startup is a member of the Securities Investor Protection Corporation and cash accounts will be protected up to $250,000. Unlike the FDIC, SIPC does not provide blanket coverage. Instead, SIPC protects customers of SIPC-member broker-dealers if the firm fails financially. [Update: Accounts might not be insured.]
Get Early Access
Sign up for early access here and reserve your debit card in one of four designs. See your spot in line and invite your friends to Robinhood to move up the line and get access faster. We’ll begin sending invitations when your Robinhood debit card is ready to ship – starting January 2019.
With no minimum balance and no fees, getting started with Robinhood Checking & Savings is easy and won’t impact your credit score.
You shouldn’t be charged fees to access, save, and invest your own money. Robinhood Checking & Savings has no minimum balance, no monthly fees, no overdraft fees, and no foreign transaction fees. With Robinhood Checking & Savings, you can save hundreds of dollars in fees.
With Robinhood Checking & Savings you get a personalized debit card that can be used for free cash withdrawals at over 75,000 ATMs across the country. That’s more free ATMs than the five largest banks combined, with locations in major stores like Target, Walgreens, or 7-Eleven. You can also use the Robinhood app to find the closest free ATM, pay bills, deposit or mail checks, and chat with customer support 24/7.