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They 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
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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.
See https://krebsonsecurity.com for a ton of articles about various skimmers and scanners that have appeared in ATMs and gas pumps.
In 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. https://share.robinhood.com/cs-chasew284
Is it FDIC insured?
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...
As 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.
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My checking / current account pays less than 1% and that's only on the first £2500 (I think), after that the interest is zero. I'd love a checking account, with no fees that pays 3% on the whole balance. My average balance on my current account is around £20k. My interest would be £600 a year at 3%, as opposed to £25 or so I get now.
What's stopping you from opening up similar accounts with other banks?
Earlier quoted context omitted.
My checking / current account pays less than 1% and that's only on the first £2500 (I think), after that the interest is zero. I'd love a checking account, with no fees that pays 3% on the whole balance. My average balance on my current account is around £20k. My interest would be £600 a year at 3%, as opposed to £25 or so I get now.
What's stopping you from opening up similar accounts with other banks?
I could open multiple, but then every month I'd need to spend time transfering money to each to earn the interest. Im not sure that would even count towards deposited every month, they might want to see a direct debit that is actually a salary. I'm not sure.
Further, I have an ISA (which is the UK tax free saving accont), that earns under 1% too and I'm limited to £20k a year into that account.
I have another account that pays ~2.x% per year, but on that one I'm limited to £250 a month.
Interest rates are abysmal right now in the UK.
Earlier quoted context omitted.
My checking / current account pays less than 1% and that's only on the first £2500 (I think), after that the interest is zero. I'd love a checking account, with no fees that pays 3% on the whole balance. My average balance on my current account is around £20k. My interest would be £600 a year at 3%, as opposed to £25 or so I get now.
What's stopping you from opening up similar accounts with other banks?
They 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
It looks like both FDIC and SIPC have a 250K protection, are there any other differences between the two that would matter to an average consumer?