Robinhood Launches New Debit Card That Helps You Invest More
Robinhood has announced a new debit card, called the Robinhood Cash Card. The card will be linked to a spending account, which is separate from the popular brokerage account. The card can be used for in-person and online payments as well as ATM withdrawals and it replaces the current Cash Management debit card, which launched about three years ago.
The new Robinhood Cash Card will help users invest more. Robinhood will round up transactions made using the card to the nearest dollar, and use that extra money to buy assets chosen by the user. So, if you spend $4.30 at the store using the Cash Card, Robinhood will round the payment up to $5 and use the extra $0.70 to buy Tesla stock, Bitcoin, or whatever else you choose. A similar feature is already offered by other trading platforms such as Acorns and Stash.
The card has no fees. That means no monthly fees, no subscription fee, no in-network ATM fees, no overdraft fees and no account minimum fees.
Existing Cash Management customers get access to the new Cash Card starting this week. New customers can sign up for Robinhood’s New Cash Card waitlist here.
Weekly Bonus on Round-ups
When customers invest in themselves, Robinhood Money will give them a bonus of 10-100% (capped at $10) on their weekly round-ups. As they spend, customers can choose to round-up their change to the nearest dollar and invest it in their choice of assets.
Instant Savings (coming soon)
With inflation on the rise, and people paying high prices on their everyday needs from gas to groceries, starting this summer, Robinhood says that Cash Card customers can beat inflation with savings when they shop at some of their favorite spots like H&M, Chevron and Chipotle, with many more coming soon.