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Robinhood launches 3% checking account

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Re: Robinhood launches 3% checking account

#471

Post by naravara »

jorams wrote: post #308
JoBrad wrote: post #253

Earlier quoted context omitted.

I’m sure a lot of people might start out that way. But if you get free money for parking your cash there, why not use that money to dabble in some trading? Seems like there is little downside for the company, and potential for upside for the consumer. Pretty good acquisition strategy, in my opinion.

Alternatively: If you get free money for parking your cash there, why risk that money by trading? 3% guaranteed earnings is a very good deal without any downside, while the risks involved with trading that money are substantial.

>while the risks involved with trading that money are substantial.

Also, presumably lots of people would rather put their beautiful minds towards things other than being anxious about how their savings are going. There is a lot to be said for just being able to park your money somewhere and not have to worry about it while you go live your life.

Re: Robinhood launches 3% checking account

#472

Post by kbos87 »

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.

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.

Re: Robinhood launches 3% checking account

#473

Post by bhahn »

guelo wrote: post #465
patio11 wrote: post #115

For folks trying to understand this, some context which may be useful: 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…

You should have put a disclaimer that you work at a competing fintech company.

Why is there a disclaimer necessary? I don't read any specific bias against Robinhood

Re: Robinhood launches 3% checking account

#474

Post by Havoc »

superfrank wrote: post #301
Havoc wrote: post #102

For those not aware of it: ton of people lost money yesterday because RH options trading system shat itself. I wouldn't trust them with my beer money https://old.reddit.com/r/wallstreetbets/comments/a5iwgh/robi...

Robinhood definitely had down time yesterday, but I'd like to make a note that /r/Robinhood overreacts to things like crazy. I'm pretty sure 95% of the people in there are under 20 and daytrading options with less than $5000. I'm bringing this up because, while some people did lose money yesterday because of Robinhood's downtime, there we also a lot of people claiming to have lost money, but were blatantly lying. I'm…

>down time

Look at the comments I linked to. That's not downtime. People's transaction history is being rolled back. Some people still have fake positions showing. Another had all his positions sold. Another got bonus buying power.

The inconsistencies in the comments are striking. Looks like a complete lotto of what happened to people's accounts. That inspires zero in their back end processes.

>makes it sound like RH was robbing them at gun point.

It pretty much is. With options timing is everything and being locked out is a disaster. Especially with the current volatility

Presumably it'll all get straightened out eventually but wow I'm definitely not putting in hard earned money on RH

Re: Robinhood launches 3% checking account

#475

Post by Havoc »

gregw134 wrote: post #448
Havoc wrote: post #102

For those not aware of it: ton of people lost money yesterday because RH options trading system shat itself. I wouldn't trust them with my beer money https://old.reddit.com/r/wallstreetbets/comments/a5iwgh/robi...

Larger brokerages have the same problem. I've lost money using Fidelity twice because their site was down for an hour.

Haven't had any thus far with IB. Admittedly only 2 years of history though

Re: Robinhood launches 3% checking account

#476

Post by reciprocity »

jancsika wrote: post #304

"Dude, have you tried ifood? After you ingest it your daily workout becomes 3% more effective." "Sounds interesting. Is it FDA approved?" "Well, no, it's FCC approved. You see, legacy foods are ripe for disruption because regulatory has capture created an artificial barrier to new marketplace entrants. With ifood we're able to end run that barrier by..." "Goodbye."

Outstanding.

Re: Robinhood launches 3% checking account

#477

Post by nawitus »

novaRom wrote: post #64
MrL567 wrote: post #38

Earlier quoted context omitted.

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.

Also 3% is astronomical for Euro zone. Here you typically have 0.01-0.1% on saving accounts (only for 100k Euro and below), and negative rate on checking accounts (most people usually pay 7-12 Euro per month for checking accounts and 20-40 Euro per year for Visa card).

You can get around 0.8% in Euro zone, but your local bank is unlikely to offer that.

Re: Robinhood launches 3% checking account

#478

Post by Havoc »

camjohnson26 wrote: post #319
driverdan wrote: post #191

Earlier quoted context omitted.

This needs to be much higher up. They may be facing lawsuits if they don't fix this. Looks like people lost significant money.

wallstreetbets is basically roulette. It's not good that people lost money through the glitch but most of these people have incredibly high risk positions. Posts like this are common: https://old.reddit.com/r/wallstreetbets/comments/9rrug5/plea...

>wallstreetbets is basically roulette.

Perhaps. Entirely irrelevant though for the topic at hand.

The broker needs to execute instructions reliable. Doesn't matter how retarded the thinking behind the instructions is

Re: Robinhood launches 3% checking account

#479

Post by superfrank »

Havoc wrote: post #474
superfrank wrote: post #301

Earlier quoted context omitted.

Robinhood definitely had down time yesterday, but I'd like to make a note that /r/Robinhood overreacts to things like crazy. I'm pretty sure 95% of the people in there are under 20 and daytrading options with less than $5000. I'm bringing this up because, while some people did lose money yesterday because of Robinhood's downtime, there we also a lot of people claiming to have lost money, but were blatantly lying. I'm…

>down time Look at the comments I linked to. That's not downtime. People's transaction history is being rolled back. Some people still have fake positions showing. Another had all his positions sold. Another got bonus buying power. The inconsistencies in the comments are striking. Looks like a complete lotto of what happened to people's accounts. That inspires zero in their back end processes. >makes it sound like RH…

>makes it sound like RH was robbing them at gun point.

>It pretty much is.

It really really isn't. This is the type of exaggeration why I find that sub insufferable.

Robinhood's stability issues are well known and normal for a fast growing, early stage startup. You as a user need to understand the limitations of the platform and incorporate them into your trading strategy.

Swing trading options on RH is like carving a turkey with a chainsaw. Sure, you can do it, but it's not the right tool for the job.

Re: Robinhood launches 3% checking account

#480

Post by prepend »

So it looks like this is covered by SIPC [0] not FDIC.

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.

[0] https://en.wikipedia.org/wiki/Securities_Investor_Protection...

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