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Robinhood launches 3% checking account

972 pointsby ccwilson10over 6 years ago

74 comments

patio11over 6 years ago
For folks trying to understand this, some context which may be useful:<p>Checking accounts are loss leaders virtually everywhere, the exception being smaller community banks. Their primary revenue stream was, once upon a time, net interest income, but these days due to the extremely low interest environment and alternate sources of funding the revenue stream is more weighted towards fees (primarily NSFs, although that was hit a few years ago) and debit card interchange.<p>Robinhood also likely expects to not become the park-your-money account of choice for older dentists but rather to become the spend-your-money account for their millennial userbase. With high velocity of money and low balances the interest expense is minimal and, to the extent they use debit cards, the interchange revenue can be material. (In a stylized example where someone makes $2k a month and spends $200 on debit card purchases and $1.8k on rent&#x2F;etc the interest cost for the year is ~$30 and the debit card interchange for the year is ~$60, even ignoring potential interest revenue.)<p>This is roughly in the same line as their core strategy, which is spending what would otherwise be a marketing budget on keeping commissions at zero, making money on the other ways brokerages make money. If you do not understand how a brokerage makes money, I encourage you to peruse the annual reports of e.g. eTrade or TD Ameritrade, which will happily explain their revenue sources and why commissions are a surprisingly small portion.<p>Metacomment: geeks who believe they have outmathed a financial firm should ask themselves &quot;Are financial firms likely to be bad at math?&quot; and &quot;Are financial firms incapable of hiring their own geeks?&quot;
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philip1209over 6 years ago
I just spent 3 months in London, and it&#x27;s crazy how Monzo seems to have taken the market. Almost everybody seems to be paying with a Monzo card, regardless of age.<p>Asking around, I consistently heard that Monzo&#x27;s competitors like Revolut are going to be a future case study in scaling before great product&#x2F;market fit. I don&#x27;t know how many people have Revolut accounts, but nobody seems to be using their cards in public.<p>Little details really add up. For instance, Revolut didn&#x27;t have contactless support for a while, which meant people could not use it on the Tube. Monzo made their cards pink, which creates a physical network effect.<p>The US seems to have a wave of startups trying to reinvent checking accounts right now. I wonder which, if any, will take the market:<p>- Varo (<a href="https:&#x2F;&#x2F;varomoney.com" rel="nofollow">https:&#x2F;&#x2F;varomoney.com</a>) - Product and brand don&#x27;t look very polished and they haven&#x27;t launched Android support, but they are doing the &quot;hard thing&quot; of getting a bank charter (rather than having a partner bank, like all of the others).<p>- Robinhood (<a href="https:&#x2F;&#x2F;robinhood.com" rel="nofollow">https:&#x2F;&#x2F;robinhood.com</a>) - Already offers investment products, so they can get a lot of users quickly. Unclear how good the product will be. (For example - can they support contactless payments with a clear card?)<p>- Chime (<a href="https:&#x2F;&#x2F;chimebank.com" rel="nofollow">https:&#x2F;&#x2F;chimebank.com</a>) - Seems to have the most mature and polished product. The killer feature they advertise is &quot;get direct deposits faster&quot;, which doesn&#x27;t seem world-changing to me.<p>My benchmark is Charles Schwab Bank, which offers no fees on any ATM, anywhere. It&#x27;s what many millennials that I know use. But, it&#x27;s a bad product and not very user-friendly. Simple tried to reinvent banking, but they never seemed to go beyond polishing the UI. I&#x27;m curious to see what the future holds, particularly as some foreign banks expand to the USA!
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dixie_landover 6 years ago
I think folks are overthinking this.<p>The math itself doesn&#x27;t matter. Have you seen recent Robinhood commercials popping up on TV? Their whole business is to encourage folks that should not be day trading to day trade.<p>Having your money parked there just facilitates knee-jerk-reaction and follow-the-crowd trading.
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ericliucheover 6 years ago
They are offering this as a brokerage and not a bank so the accounts are not FDIC insured but SIPC insured instead <a href="https:&#x2F;&#x2F;support.robinhood.com&#x2F;hc&#x2F;en-us&#x2F;articles&#x2F;360001469903" rel="nofollow">https:&#x2F;&#x2F;support.robinhood.com&#x2F;hc&#x2F;en-us&#x2F;articles&#x2F;360001469903</a>
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Havocover 6 years ago
For those not aware of it: ton of people lost money yesterday because RH options trading system shat itself. I wouldn&#x27;t trust them with my beer money<p><a href="https:&#x2F;&#x2F;old.reddit.com&#x2F;r&#x2F;wallstreetbets&#x2F;comments&#x2F;a5iwgh&#x2F;robinhood_options_fat_finger_glitchbug_thread&#x2F;" rel="nofollow">https:&#x2F;&#x2F;old.reddit.com&#x2F;r&#x2F;wallstreetbets&#x2F;comments&#x2F;a5iwgh&#x2F;robi...</a>
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jancsikaover 6 years ago
&quot;Dude, have you tried ifood? After you ingest it your daily workout becomes 3% more effective.&quot;<p>&quot;Sounds interesting. Is it FDA approved?&quot;<p>&quot;Well, no, it&#x27;s <i>FCC</i> approved. You see, legacy foods are ripe for disruption because regulatory has capture created an artificial barrier to new marketplace entrants. With ifood we&#x27;re able to end run that barrier by...&quot;<p>&quot;Goodbye.&quot;
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picodguyoover 6 years ago
This is higher than even most long-term CDs at the moment. Anyone have thoughts on how this is possible? Possibly a teaser that will adjust down soon?
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flexieover 6 years ago
This whole checking account &#x2F; savings account, credit card&#x2F; debit card system that Americans have to deal with is so cumbersome and backwards.<p>For Europeans that don&#x27;t know: Most Americans have (at least) those two accounts, and those two cards. They usually spend from their checking account with their credit card, and save on the savings account. When they spend on their credit card, they sometimes &quot;earn&quot; points, depending on what agreement their bank has with the major retailers. Salary is inserted on the checking account. Some people still receive salary on old fashioned paper checks. Some people still pay in stores using paper checks. Almost everyone, has a lot of paper dollars in their wallet since there are plenty of places in which you need it. Now, on regular intervals, for example at the end of the month, Americans then transfer money from their savings account to their checking account if the salary is not enough to cover. If they forget, they pay high interests and fees. Generally speaking, it&#x27;s a hassle to transfer money to people you know and fees are hefty. When you use your credit card, no pin code is usually needed. There are regularly issues with your credit card being abused.<p>In the three European countries I have lived in, people have one account, and one card. Depending on your agreement with the bank, it can dip into negative (in which case you pay some interest, but usually not much). If it dips below the agreed max, let&#x27;s say minus EUR 5,000, then you can&#x27;t withdraw more until you receive your salary or until you insert money otherwise. People have one card attached to that card. When the balance on the account is positive, it is essentially a debit card. When the balance on the account is negative, it&#x27;s a credit card. Usually, no points are earned on any spending. In most of Europe, you use your pin code if you use your credit card. Where in America, you regularly spend time on the phone talking to robots and objecting to expenditures you didn&#x27;t make, that&#x27;s almost never the case in Europe. People transfer electronically without any fees from account to account. If you go out, and your friend pays dinner, you can transfer your half directly from your smart phone using just his phone number (so essentially just using the contacts on your phone). You don&#x27;t need Apple or Google pay or similar. It&#x27;s your bank&#x27;s app. No fee is charged.
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a13nover 6 years ago
This is massive news.<p>Banks are going to have to decide whether they want to raise their rates to compete, or face bleeding customers.<p>The best part is that the money comes from merchants and credit card companies, and is being returned to consumers.<p>Robinhood truly is living up to their name: stealing from the rich and giving to the poor.
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kinover 6 years ago
Unless I&#x27;m completely ignorant of what&#x27;s out there, 3% interest on a free personal checking account is absolutely bonkers.<p>I can only imagine everyone in &#x2F;r&#x2F;churning jumping on this if they have an invite.
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myroon5over 6 years ago
&quot;Robinhood expects to turn a profit thanks to a lean 300-employee operation, earning a margin on investing your money in US treasuries, and a revenue share with Mastercard on interchange fees charged to merchants when you swipe&quot;
Arubisover 6 years ago
For all the folks suggesting that this is funded by selling your data: is there reason to expect that other banks with lower rates aren’t also selling your data? They may be less technically apt, but banks aren’t usually ones to leave money on the table.
durkieover 6 years ago
PSA: those using Robinhood for trading, they use the FIFO&#x2F;first-in-first-out method for determining your cost basis when you sell. This can have unexpected tax consequences.<p><a href="https:&#x2F;&#x2F;support.robinhood.com&#x2F;hc&#x2F;en-us&#x2F;articles&#x2F;360001226966" rel="nofollow">https:&#x2F;&#x2F;support.robinhood.com&#x2F;hc&#x2F;en-us&#x2F;articles&#x2F;360001226966</a>
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jshaqawover 6 years ago
FDIC insurance exists for a reason. It prevents runs on the bank. There will be a time of financial crisis in the future and anyone with a Robin Hood account will flee for an FDIC guaranteed account. The run on liquidity will probably destroy the institution.
apoover 6 years ago
3% on checking sounds too good to be true. What&#x27;s the catch?<p>For example, I didn&#x27;t see anything about how funds are insured. If Robinhood were to somehow lose depositor funds, what recourse would account holders have?
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jccalhounover 6 years ago
This article has some of the worst pr-speak I&#x27;ve seen in an &quot;article.&quot; It sounds like it was pasted straight from a press release. The only thing this company is doing that tons of other online banks isn&#x27;t is 3%. A lot of smaller banks are offering 2%+ so I would guess it is likely other banks will match this 3% <a href="https:&#x2F;&#x2F;www.depositaccounts.com&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.depositaccounts.com&#x2F;</a>
tbenstover 6 years ago
Lot of misinformation in the marketing. This is not a checking nor savings account. Checking and savings accounts are FDIC insured which gurantees $1 in &#x2F; $1 out. This is a brokerage account, and if the way robinhood invests the cash goes down, so does your “checking” account. The company could choose to cover the losses but insurance will not if robinhood fails.
rlorenzoover 6 years ago
I wouldn&#x27;t mind switching to them, but they don&#x27;t integrate with financial tracking systems like Mint. I find the ability to get a birds eye view of my finances too valuable. Sticking with Ally and their 2% for now. Do wish they integrate with Mint or Personal Capital.
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prependover 6 years ago
So it looks like this is covered by SIPC [0] not FDIC.<p>That’s pretty bad so the account get zeroed out by identity theft, or embezzlement, or robin hood going bankrupt. These are all terrible risks for checking accounts (or money market even). This is basically investing in RobinHood in an easy manner.<p>[0] <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Securities_Investor_Protection_Corporation" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Securities_Investor_Protection...</a>
y-c-o-m-bover 6 years ago
There is a wait-list of more than 45,000 people when you sign up for the checking. An email is sent out after you register and it says the feature arrives in early 2019.
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JohnJamesRamboover 6 years ago
Sorry if this is ignorant but how does the ATM system for this work? Who owns the ATMs at Target and 7-11? Is there a limit to how much cash you can deposit? I&#x27;d like to use this but I will be processing a lot of cash in the future and worry about depositing thousands of dollars at an ATM.
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vthallamover 6 years ago
Link to their blog post instead - <a href="https:&#x2F;&#x2F;blog.robinhood.com&#x2F;news&#x2F;2018&#x2F;12&#x2F;13&#x2F;introducing-robinhood-checking-amp-savings" rel="nofollow">https:&#x2F;&#x2F;blog.robinhood.com&#x2F;news&#x2F;2018&#x2F;12&#x2F;13&#x2F;introducing-robin...</a>
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httpzover 6 years ago
Assuming the transfer from the checking account to the brokerage account is instant, this can give you a lot more liquidity to your stocks. Traditionally, I have to set aside few thousand dollars that I&#x27;m absolutely sure I won&#x27;t need anytime soon, transfer it to a brokerage account, wait few days, remember to check if then money is in, buy the stock, then reverse the process to sell the stock. The round trip of money in checking account to owning a stock took few days but now it can be done under a minute for free.<p>Investing day to day with the money in your checking account is probably not a recommended personal finance practice but I definitely have more money in my checking account than I probably need this month because moving money is too painful.
DINKDINKover 6 years ago
&quot;Robinhood&quot; steals from its users to gives to its investors:<p>&quot;Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders&quot; [1]<p>&quot;Robinhood Investing App Secretly Makes Millions Selling Millennials&#x27; User Data To HFT Firms&quot; [2]<p>[1]<a href="https:&#x2F;&#x2F;seekingalpha.com&#x2F;article&#x2F;4205379-robinhood-making-millions-selling-millennial-customers-high-frequency-traders" rel="nofollow">https:&#x2F;&#x2F;seekingalpha.com&#x2F;article&#x2F;4205379-robinhood-making-mi...</a><p>[2]<a href="https:&#x2F;&#x2F;www.zerohedge.com&#x2F;news&#x2F;2018-09-15&#x2F;robinhood-investing-app-makes-millions-selling-users-data-high-frequencstealing" rel="nofollow">https:&#x2F;&#x2F;www.zerohedge.com&#x2F;news&#x2F;2018-09-15&#x2F;robinhood-investin...</a>
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zbruhnkeover 6 years ago
For users asking questions about how this will tell you a lot.<p>Users of Robinhood Checking and Savings earn 3% interest annually on each of their Checking and Savings balances. Robinhood does not charge account maintenance, account minimum, overdraft, ATM, transaction, foreign transaction, transfer, or card replacement fees for Robinhood Checking and Savings. Robinhood Checking and Savings is offered through Robinhood Financial LLC. Robinhood Checking and Savings is an added feature to existing Robinhood accounts and is not a separate account or a bank account. The Robinhood Debit Card is issued by Sutton Bank pursuant to a license from Mastercard International, Inc. Neither Sutton Bank nor Mastercard International, Inc. are members of FINRA or SIPC.
mrfusionover 6 years ago
Will the 3% be a long term thing or is it just a sign up gimmick?
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awinderover 6 years ago
M1 has a checking&#x2F;savings account coming in 2019 Q1, so this seems to be getting into the territory of tablestakes rather quickly. I&#x27;m kinda ready to say good riddance to my brick-and-mortar bank, other than maybe maintaining it at a low level for any in-branch needs (and as a source to transfer into robinhood).<p>(<a href="https:&#x2F;&#x2F;old.reddit.com&#x2F;r&#x2F;M1Finance&#x2F;comments&#x2F;9hk0dc&#x2F;m1_team_ama_101118_1pm_cst&#x2F;" rel="nofollow">https:&#x2F;&#x2F;old.reddit.com&#x2F;r&#x2F;M1Finance&#x2F;comments&#x2F;9hk0dc&#x2F;m1_team_a...</a> has some light details on the M1 banking product for anyone interested)
SEJeffover 6 years ago
As a user of the Robinhood brokerage for all of my &quot;fun investment money&quot; I&#x27;m a fan of this. I do wonder how the big banks are going to respond however as this is blatantly a &quot;shots fired&quot; kind of event.
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russell_hover 6 years ago
Is it FDIC insured?
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smallgovtover 6 years ago
This is a marketing bait and switch. One of two things must happen:<p>1) They lower the interest rate down the line after they&#x27;ve acquired a bunch of customers<p>2) They limit the offer to certain customers who are lucrative<p>If they sustain this offer for the general public, they will 100% go out of business.<p>The 5 year treasury rate is currently set at 2.75%. Traditionally, people use treasury bonds as a place to park safe money, but the SIPC insurance makes this just as safe (up to $250K).
pkayeover 6 years ago
&gt; The checking and savings products are not technically bank accounts. They are separate balances held within a Robinhood brokerage account. Your checking and savings funds are not FDIC-insured, but they are protected by insurance from the Securities Investor Protection Corporation, up to $250,000 in cash, according to Robinhood&#x27;s FAQs.<p>Is there any risk to the SIPC insurance vs FDIC-insured?
Matstaover 6 years ago
I don&#x27;t think anyone has mentioned it, but could their motive for this launch is to get in before Monzo launches in the states (source: <a href="https:&#x2F;&#x2F;www.forbes.com&#x2F;sites&#x2F;oliversmith&#x2F;2018&#x2F;10&#x2F;31&#x2F;with-a-fresh-billion-dollar-valuation-monzo-is-already-planning-a-2019-funding-round-to-enter-the-us&#x2F;#6ffde7ea61c2" rel="nofollow">https:&#x2F;&#x2F;www.forbes.com&#x2F;sites&#x2F;oliversmith&#x2F;2018&#x2F;10&#x2F;31&#x2F;with-a-f...</a>)<p>Monzo has blown up in the UK, and I know their team is growing at a crazy rate. While they aren&#x27;t profitable yet, they plan to sell financial services through their marketplace (insurance, mortgages etc.) which seems to be a major source of potential income for them (source: <a href="https:&#x2F;&#x2F;monzo.com&#x2F;blog&#x2F;2017&#x2F;11&#x2F;16&#x2F;monzo-marketplace&#x2F;" rel="nofollow">https:&#x2F;&#x2F;monzo.com&#x2F;blog&#x2F;2017&#x2F;11&#x2F;16&#x2F;monzo-marketplace&#x2F;</a>)
xivzgrevover 6 years ago
I love how this is breaking the mold, paying 3% on checking.<p>But when you look at it, it&#x27;s actually not particularly useful. You want to put money in, and take money out right? In this account, you basically can only withdraw money in 3 ways: 1) use their debit card (inc ATM) 2) transfer money out to a bank via their brokerage account 3) have them mail a check (up to $2500 per day)<p>This excludes all sorts of common use cases: 1) auto pay credit cards 2) link to venmo &#x2F; other app 3) use other debt cards (e.g., Target) 4) give a check to someone in person 5) make larger payments (e.g., mortgage) ...etc...<p>My guess is these restrictions are there to protect themselves financially. As they reach a certain mass of users, they may relax and be able to take on more risk.
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shift8over 6 years ago
Til they lose your money I guess just like the options yesterday (actually, that really stinks for some developer somewhere and was completely horrible so wishing the engineers some good vibes over that and hopefully work out).
jetruover 6 years ago
Can someone provide some examples where you would lose money in an SIPC insured account(like in Robinhood, presumably backed by low risk securities) that would otherwise be safe in a FDIC insured account?
kbos87over 6 years ago
My bank just launched an “online only” division which gives me savings at 2.65%, the option to attach checking, and no fees to speak of. The rate is a little lower but still pretty solid. The only caveat is I can’t access that account through their branches; it’s just through their website.<p>I don’t think the whole “we don’t have branches so we can pass along the savings to you” thing is as defensible as it was 5 years ago. Other businesses can do the math and move in that direction if pressured to do so, and it seems like some of the bigger banks already are.
whitepoplarover 6 years ago
To anyone knowledgeable with SIPC, what happens in the event that many firms go bankrupt at the same time (e.g. global financial collapse) and SIPC doesn&#x27;t have enough funds to cover losses across all firms? As far as I&#x27;m aware, FDIC (for bona fide bank accounts) is backed by the full faith and credit of the U.S. Government (even though, on its own, it may not have enough funds to cover all liabilities, Congress can and will authorize additional funding to cover said liabilities), but I&#x27;m not sure if that&#x27;s true for SIPC.
iandanforthover 6 years ago
Maybe I&#x27;m doing it wrong but the &quot;no foreign transaction fees&quot; is just as exciting. Using my BofA card on trips always results in a welcome home set of charges I could do without.
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latchkeyover 6 years ago
I can get ~8% APY on VND in Vietnamese bank accounts with a time deposit of around 6-12 months. This sounds wonderful until you realize...<p>Inflation is around 4% [1], the account is only insured up to about $3500 (if you are lucky) and VND keeps deflating in value against USD. Never mind the US tax filings take another chunk.<p>There is always a catch.<p>[1] <a href="https:&#x2F;&#x2F;tradingeconomics.com&#x2F;vietnam&#x2F;inflation-cpi" rel="nofollow">https:&#x2F;&#x2F;tradingeconomics.com&#x2F;vietnam&#x2F;inflation-cpi</a>
antiviralover 6 years ago
Can anyone explain to me how they are able to offer 3% when 1 year treasury notes are less than 3% right now?<p>If they use longer term bonds, they will face potential losses as those tend to be volatile relative to interest rate changes. If they use higher-yielding corporate bonds, they face default risk.<p>There&#x27;s something critical that&#x27;s not being explained here which is important, and I wouldn&#x27;t want to put my money in something like that without understanding it thoroughly.
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dubliduover 6 years ago
I’m not sure why other banks haven’t followed. One month treasury rate is already up to 2.3% now and banks can certainly lend it out at higher than treasury rate.
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mariusz331over 6 years ago
This lack of FDIC is slightly worrying:<p>&quot;In an email to Barron’s the head of the SIPC cast doubt on the idea that it would insure checking or savings accounts.&quot;<p>source: <a href="https:&#x2F;&#x2F;www.barrons.com&#x2F;articles&#x2F;robinhood-app-is-offering-a-3-interest-rate-to-take-on-the-banks-51544723146" rel="nofollow">https:&#x2F;&#x2F;www.barrons.com&#x2F;articles&#x2F;robinhood-app-is-offering-a...</a>
tooltalkover 6 years ago
I&#x27;ve using their brokerage services -- no fee on stock and option trading -- and I&#x27;m ready to move my primary ETrade account to Robinhood soon.<p>Capital One currently offers 5-yr CD for 3.15%. I just signed up for Citi Priority to save a few pennies on &quot;foreign transaction fees,&quot; but it pays paltry 0.03%. That 3% sounds to good to be true, but it&#x27;s probably not impossible.
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ctdeanover 6 years ago
For those interested in maximizing their interest rate on their cash holdings, I like <a href="https:&#x2F;&#x2F;www.maxmyinterest.com&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.maxmyinterest.com&#x2F;</a> which has deals with many banks for high interest accounts. They make it very easy to move your money around to get the maximum ... uh ... return.
dawhizkidover 6 years ago
For those where no FDIC insurance is a dealbreaker, I recently signed up for SoFi Money <a href="https:&#x2F;&#x2F;www.sofi.com&#x2F;money&#x2F;fees&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.sofi.com&#x2F;money&#x2F;fees&#x2F;</a> which is FDIC insured up to 1.5m, offers 2% APY checking, and unlimited ATM fee rebates from any ATM in the world.
anonuover 6 years ago
3 percent is insane and not sustainable<i>. One year treasuries are at 2.7 percent. I could short treasuries and put all my money in Robinhood... ripe for arbing. How are they making money? My first inclination is to think parking my money with them is super risky...<p></i> Edit: Looking at today&#x27;s market and interest rates.
nemo44xover 6 years ago
This is great to see. It&#x27;s even better than the current 1-year CD&#x27;s I&#x27;ve seen for 1 year. And since this is a checking&#x2F;savings account there&#x27;s no time aspect to locking up your cash.<p>If my bank can&#x27;t compete with this then I will be moving some cash savings into a new Robinhood account.
dawhizkidover 6 years ago
I actually like the newish Sofi Money debit card. It offers 2% for checking (so not as good but better than any other checking account at the moment), but the real benefit to me is unlimited ATM fee rebates at any ATM worldwide (which doesn&#x27;t seem to be true of RH&#x27;s product).
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kinnthover 6 years ago
Monzo in the UK is a great example of non-bricks and mortar bank. I know that UK financial startups always find it hard to break into America simply because banking laws are crazy over there. But I would expect a lot of the UK Fintech to think about trying to break america soon.
manicksuryaover 6 years ago
I registered for this and I am in line. To get prior access. I am asked to refer my friends.<p>Just wondering how robinhood shows all my friends though I have not connected robinhood to any of my social network. I feel this as a big privacy issue and it’s concerning a lot.
ignign0ktover 6 years ago
My credit union has 3% yield on checking. However it has requirements (direct deposit, minimum debit uses, etc) and only applies on up to $15,000. I&#x27;ll be curious to see how Robinhood&#x27;s will work out though since there&#x27;s no cap.
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ankimalover 6 years ago
Are there any reasons for not moving my cash reserves from Marcus to Robinhood given:<p>* Marcus&#x27; interest rate is also adjustable and is lower than 3%.<p>* Marcus has no ATM access&#x2F;debit card.<p>* Getting money out of Marcus requires it to be transferred to another checking account.
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allochthonover 6 years ago
Earlier today I simply visited the early access page for Robinhood, and this evening I got an invitation to join it, without having submitted my email address. Presumably it was a blanket spam mailing? Kinda scary.
gigatexalover 6 years ago
I really, really like these new startups in this space: I super admire Robinhood and N26. I use them both and have nothing but good things to say about my time with them. I’d love to work for either of them too
coryfkleinover 6 years ago
If you&#x27;re looking for a good liquid place to park cash and you don&#x27;t have a Robinhood invite, check out Dollar Savings Direct. They currently pay 1.8% interest on their savings accounts.
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FfejLover 6 years ago
While 3% is a good deal, there have been internet-only banks for quite some time now, all of whom look pretty much like this. Radius and Axos are two examples that have been around for a while.
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rm2040over 6 years ago
accompanying commercial cringe level over 9000 <a href="https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=f48SglGrpEg" rel="nofollow">https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=f48SglGrpEg</a>
IshKebabover 6 years ago
I&#x27;m sure there is a catch. Normally whenever banks offer good interest rates there is some maximum amount you can invest, or it&#x27;s only valid for a year, or etc. etc. etc.
acjohnson55over 6 years ago
It seems like RH is positioning themselves to become the provider of choice for all things financial to consumers. It&#x27;ll be interesting to see how that evolves.
erikpukinskisover 6 years ago
Is there any way to get cash out? I used Simple for years, and it was great but for the handful of times I needed a thousand dollars in cash.
philfrastyover 6 years ago
Anyone know of similar (short term) rates over here in Europe? Gotta be lucky to snatch up 1% for the first 6 months after signing up...
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iknwnothingover 6 years ago
You can move up the list by aliasing like abcd@gmail.com, abcd+1@gmail.com, abcd+2@gmail.com etc :&#x2F; I expected validation.
NoblePubliusover 6 years ago
Robinhood has never posted its AUM. Are they going to try to count checking balances as brokerage balances?
chompover 6 years ago
Do they offer paper checks? I still have need to send out paper checks from time to time.
danvoellover 6 years ago
They are paying more than treasury rates, aside from the 30 year.
hartatorover 6 years ago
3% checking is huge, it beats all saving accounts out there.
nikolayover 6 years ago
So, Robinhood is following the steps of E*Trade?!
turtlecloudover 6 years ago
Can’t even unsubscribe from their emails ugh.
garysahota93over 6 years ago
How would they make money on this?
coryfkleinover 6 years ago
*invite only
anoncoward111over 6 years ago
Robinhood has a horrible track-record for support.<p>People routinely have their money stuck in Robinhood with no response from support.<p>Cannot recommend using them.
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OldSchoolJohnnyover 6 years ago
The flour company?
josteinkover 6 years ago
People still have checking accounts? In 2018? And that’s a completely serious question.<p>I literally haven’t seen a check used anywhere the last 25 years. I doubt any place I frequent would accept one.<p>In fact I don’t know a single bank which issues checks...<p>I assume most university students these days wouldn’t even know what a check was, if given one.<p>So where is the market? The past? I mean... you’d need a time machine to use these, right?
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lowercasedover 6 years ago
“These fees like overdraft fees — they’re not fees millionaires are paying. It’s ordinary folks paying. It’s actually more expensive for those that have less money and it’s cheaper for those that have more money. We think that isn’t right and we think that’s bad business” Bhatt gripes.<p>================<p>It&#x27;s been pretty good business for many banks for years. ???