Is it FDIC insured?
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Robinhood launches 3% checking account
11–20 of 684 posts
Re: Robinhood launches 3% checking account
#12Sorry 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'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.
I would be very unconfortable depositing large amounts of cash at an ATM unless it was a first-party (owned by my bank) ATM with the newest tech that can scan bills as they go in.
Even then I think for cash I might be more comfortable handing it to a teller and getting a receipt.
These third party low-rent ATMs at convenience stores don’t even take deposits. They are withdrawal only.
Re: Robinhood launches 3% checking account
#13Sorry 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'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.
Sounds like it's probably using the AllPoint network.
Re: Robinhood launches 3% checking account
#14As a user of the Robinhood brokerage for all of my "fun investment money" I'm a fan of this. I do wonder how the big banks are going to respond however as this is blatantly a "shots fired" kind of event.
Re: Robinhood launches 3% checking account
#15Sorry 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'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.
I use Simple, which is similarly online-only. They recommend depositing cash by getting a money order, which you can deposit via online check deposit by taking a picture of it. I doubt the ATMs at Target/7-11 can take cash deposits. I've only seen that feature on bank branch ATMs.
Wow that's a bummer.
Re: Robinhood launches 3% checking account
#16Will the 3% be a long term thing or is it just a sign up gimmick?
Re: Robinhood launches 3% checking account
#17Link to their blog post instead - https://blog.robinhood.com/news/2018/12/13/introducing-robin...
Re: Robinhood launches 3% checking account
#18I’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.
Because there is basically no competition. Plenty of credit unions around my area offer 3% or sometimes 4% checking, but the best bank rate I could find was under 1%.
But credit unions and especially new small players like Robinhood aren't going to threaten PNC or BoA or Chase. So why would they give up free money if they don't have to?
Re: Robinhood launches 3% checking account
#19This 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?
Re: Robinhood launches 3% checking account
#20This is great to see. It's even better than the current 1-year CD's I've seen for 1 year. And since this is a checking/savings account there's no time aspect to locking up your cash.
If my bank can't compete with this then I will be moving some cash savings into a new Robinhood account.