11–20 of 29 posts
Just one example, of many, that shows this author doesn’t know what they’re talking about. At all.
Joined waitlist, thanks for this info. Personally, I'm more interested in the ez creation of virtual and temp cards to use for certain subscriptions than anything else.
> On top of that, Robinhood is on the hook for 5% APY on uninvested cash. Yes, the uninvested balance is cash that Robinhood can invest and profit from, but will they clear the 5% hurdle every time? Just one example, of many, that shows this author doesn’t know what they’re talking about. At all.
> On top of that, Robinhood is on the hook for 5% APY on uninvested cash. Yes, the uninvested balance is cash that Robinhood can invest and profit from, but will they clear the 5% hurdle every time? Just one example, of many, that shows this author doesn’t know what they’re talking about. At all.
Can you explain?
> Sure, the Robinhood Gold membership fee will act as a cushion, but at $5/month, it will only take cardholders around $2,000 to recoup their money. Not a high amount. On top of that, Robinhood is on the hook for 5% APY on uninvested cash. Yes, the uninvested balance is cash that Robinhood can invest and profit from, but will they clear the 5% hurdle every time? I am not sure. Oh, did I mention that they would give 1…
Joined waitlist, thanks for this info. Personally, I'm more interested in the ez creation of virtual and temp cards to use for certain subscriptions than anything else.
I've been using privacy.com for years now for this purpose, it's great and I cannot imagine using my actual cards for anything online again.
https://techcrunch.com/2023/06/22/robinhood-acquires-credit-...
> On top of that, Robinhood is on the hook for 5% APY on uninvested cash. Yes, the uninvested balance is cash that Robinhood can invest and profit from, but will they clear the 5% hurdle every time? Just one example, of many, that shows this author doesn’t know what they’re talking about. At all.
On the 3% Cash back CC, they talk about how they will lose money, and they absolutely won't.
The APR on balances > 30 days will almost certainly be in the high 20's like every other credit card. Banks don't look at the interchange fees fed to them separate from the rest of the CC business. 3% is easy to pay when most people hold balances on their CC's and they are charging 20+% and getting 2+% on interchange fees from Visa/MC/etc.
Probably though Robinhood isn't handling the CC themselves, and has contracted it out to some bank to handle for them, as banks are very good at that sort of thing and brokerages generally are not. Other than Schwab, which owns a bank, I'm not aware of any brokerage CC that isn't contracted out. Fidelity famously uses Elan.
The author of the post clearly doesn't understand how modern finance works.