Robinhood Will Relaunch Its High Yield Cash Account

Robinhood, a no fee stock trading app, made news last December by announcing a no-fee checking-and-savings account that offered a 3% yield. However, the excitement of the news didn’t last long. First there was doubt whether the deposits were really insured. Then they scrapped their plans completely, apparently because they hadn’t checked with regulators before making the announcement.

robinhood cash account

It was an embarrassing misstep for the company, but now Robinhood is preparing to give it another go. But they’re making it clear this time that it is not a “bank account”. Robinhood COO, Gretchen Howard, told Fortune that “the new product will be a cash management feature within customers’ existing brokerage accounts rather than a stand-alone account.”

The company has also filed for a federal bank charter—a tool that would allow it to offer traditional banking products.

You can already sign up for Robinhood here, to trade for free. But there’s no word yet when the high yield cash account is becoming available.

 

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