"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"
Robinhood launches 3% checking account
31–40 of 684 posts
Re: Robinhood launches 3% checking account
#32Will the 3% be a long term thing or is it just a sign up gimmick?
The only fine print at the bottom of their signup page simple says;
“Users of Robinhood Checking and Savings earn 3% interest annually on each of their Checking and Savings balances.”
I would have thought a more precise disclosure would be required. But it certainly does not say anything about fixed, guaranteed, etc.
Presumably when you get to actually creating an account there will be more specific terms which must allow them to adjust the rate in the future.
But it does not seem to be a kind of “teaser” rate. It seems like, I’m guessing, that everyone with a Robinhood Checking account will get the same rate, if they change it in the future it would be a product-wide adjustment.
Re: Robinhood launches 3% checking account
#33Is it FDIC insured?
There was a mention of a partnership with Sutton bank based in Ohio. I’m sure that’s where the FDIC insurance comes from.
Re: Robinhood launches 3% checking account
#343% on checking sounds too good to be true. What's the catch?
For example, I didn't see anything about how funds are insured. If Robinhood were to somehow lose depositor funds, what recourse would account holders have?
Re: Robinhood launches 3% checking account
#35I'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.
Its not too good to be true. These are simply the effects of true non crony capitalism at work. Decentralisation of everything is forcing the crony status quo capitalistic system to change, thus pushing the boundaries of progress further than before. This is simply the beginning.
Re: Robinhood launches 3% checking account
#36In case people don’t have the direct link to sign up :
Edit: referral link, but no real benefit (i.e. monetary) to me for posting it.
Re: Robinhood launches 3% checking account
#37I'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.
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Re: Robinhood launches 3% checking account
#38Unless 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?
Interest rates for banking accounts for quite some time have been low. 3% is very high for the USA so it'
s a pleasant surprise for many people.
Re: Robinhood launches 3% checking account
#39Earlier quoted context omitted.
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.
This is anecdotal, and not explicitly about ATMs, but I have had those "Pay your bills here" machines at 7/11 and other convenience stores mishandle my money a couple times. It would report I paid $150 instead of $200, missing a single $50 note.
This was resolved after about 2 hours on the phone with the company who manages the machines, but I still don't use them anymore.
Re: Robinhood launches 3% checking account
#40Earlier quoted context omitted.
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.
Years ago depositing cash into envelopes which would slide into the machine, once or twice I had the deposit amount “adjusted” after the fact.
How can you prove if it was you or them that miscounted?
Modern “envelope-less” machines do not have this risk.
Counting cash by hand is surprisingly error prone. I ran a snack bar in high school and I would hand-count a large pile of grubby $1s before bringing to the bank. About once a week the total from their counting machine would not match my tally. I think even once it was the machine that got it wrong.
If you’re face to face with a human you can error correct before the pile of cash disappears.