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.
Robinhood launches 3% checking account
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Re: Robinhood launches 3% checking account
#22Sorry 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.
Not to come across like this is an attack, but do you have any evidence/rationale behind that fear? I've never heard of ATMs mishandling money, although I haven't researched it before.
Re: Robinhood launches 3% checking account
#23Unless I'm completely ignorant of what's out there, 3% interest on a free personal checking account is absolutely bonkers.
I can only imagine everyone in /r/churning jumping on this if they have an invite.
Re: Robinhood launches 3% checking account
#24I've using their brokerage services -- no fee on stock and option trading -- and I'm ready to move my primary ETrade account to Robinhood soon.
Capital One currently offers 5-yr CD for 3.15%. I just signed up for Citi Priority to save a few pennies on "foreign transaction fees," but it pays paltry 0.03%. That 3% sounds to good to be true, but it's probably not impossible.
Re: Robinhood launches 3% checking account
#25Anyone 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...
Re: Robinhood launches 3% checking account
#26Link to their blog post instead - https://blog.robinhood.com/news/2018/12/13/introducing-robin...
>With Robinhood, you’ll earn 3% on your money in both Checking & Savings, and interest compounds and is paid out daily. That’s an extra $240 a year for the average American household with $8,000 in the bank
Does not compute. If it compounds daily then yearly total is above 3%
Re: Robinhood launches 3% checking account
#27While 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.
It's not very common on checking accounts though, even for online banks. 3% interest on online savings though is a different story!
Re: Robinhood launches 3% checking account
#28Sorry 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.
ATM is reimbursement based. Very much how shared branching with credit unions work.
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Re: Robinhood launches 3% checking account
#29They are offering this as a brokerage and not a bank so the accounts are not FDIC insured but SIPC insured instead https://support.robinhood.com/hc/en-us/articles/360001469903
Re: Robinhood launches 3% checking account
#30Unless I'm completely ignorant of what's out there, 3% interest on a free personal checking account is absolutely bonkers. I can only imagine everyone in /r/churning jumping on this if they have an invite.
I guess I'm a bit naive, why is this?