Robinhood responds back with a new Cash Management Account - here’s what they offer, and my thoughts whether or not it’s a good deal to invest in - enjoy! Add me on Instagram: GPStephan
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Robinhood strikes back, unveiling a new Cash Management Account paying a 2.05% interest rate.
Here’s how Cash Management works: It pools your money together, and then “Sweeps” it across other, affiliate banks which then have FDIC insurance. This means you can have one centralized location where you can view your money, even though - technically - it’s split between several partners.
In this case, Robinhood is partnering with Goldman Sachs, HSBC, Wells Fargo, Citibank, Bank of Baroda, and US Bank….that could potentially give you up to $1,250,000 worth of FDIC insurance, all at a 2.05% interest rate.
Now, besides the 2.05% interest paid on up to $1,250,000…they’ll also give you access to a debit card, linked to your Robinhood account, issued by Sutton Bank. According to Robinhood, they’ll offer access to 75,000 free ATM’s, all without foreign transaction fees, no maintenance fees, and no account minimums…
All things considered…this seems really good, and I’ve already signed up to join their waitlist because I want some of that 2.05% interest. And if you were wondering how they compared to other brokerages and banks out there….it’s decent. Not the best, not the worst… but decent.
For example, right now - the best return on a bank account comes from Vio Bank, paying 2.42% interest on your money.
https://www.viobank.com/savings-2?npclid=EAIaIQobChMI_qzawKyN5QIVmhitBh3S3gm-EAAYASAAEgLPA_D_BwE&utm_source=google&gclid=EAIaIQobChMI_qzawKyN5QIVmhitBh3S3gm-EAAYASAAEgLPA_D_BwE
You also have MySavingsDirect, offering 2.1% interest with absolutely no fees or minimums…
https://www.mysavingsdirect.com/securebanking/login.do?_flowExecutionKey=_c2A0A7E10-AC03-D2BB-9E24-2EAAD8C078A0_kAEC0E5EB-9EB2-EC20-C60E-7BFC422D00BD
Or, you have Wealthfront Cash Management which is a 2.07% return - FDIC insured up to $1 million dollars - again, with no fees or minimums:
https://support.wealthfront.com/hc/en-us/articles/360022404932-What-is-Wealthfront-s-Cash-Account-
And then of course you have other, similar banks like CIT Bank…Citi Bank…
And, obviously…then you have Robinhood.
In my opinion, what they’re offering right now is good - It’s high enough to get your attention, without being UNBELIEVABLY high…and it’s competitive enough against other brokerages offering $0 trades, without being obnoxiously so. And I think this is a REALLY smart move on Robinhoods behalf to do this NOW, at a time where they really need it the most.
I really hope, in the future, that they can continue expanding their banking services - OR - perhaps give some trading incentives to people who open up a cash management account with them. OR - Maybe one day they begin offering low interest rate loans one day. And I REALLY hope they can eventually expand and improve their customer service, which is where I truly feel their overall platform is lacking…
As for me, I’ve already signed up for their cash management account and I’m like 80,000 on the list - but given all of this information, I’m going to give it a shot and put some money in to see what happens. I tested this out previously with Wealthfront and was incredibly happy with using their service in conjunction with Ally Bank…so, I’ll give Robinhood a shot, too, so I can report back and see how it goes.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com

By Stock Chat

where the coffee is hot and so is the chat

30 thoughts on “Robinhood strikes back – their response!”
  1. Avataaar/Circle Created with python_avatars Christopher Parrow says:

    It would be cool for Robin Hood to offer personal loans but I would like to have a lower interest rate on those loans.

  2. Avataaar/Circle Created with python_avatars J W says:

    Robinhood is great and I'll always use them, but Charles Schwab is ultimately where it's at

  3. Avataaar/Circle Created with python_avatars Jose Salto says:

    So should I switch from chase to Robinhood?

  4. Avataaar/Circle Created with python_avatars DerpyNoodle says:

    now its crap when it comes to its interest rate, because its 0.30%.

  5. Avataaar/Circle Created with python_avatars ivari6e says:

    It's 0.30% now for uninvested cash…

  6. Avataaar/Circle Created with python_avatars Jamie Jones says:

    Nice zenith el primero

  7. Avataaar/Circle Created with python_avatars Matt says:

    How fast can money move from and to this account

  8. Avataaar/Circle Created with python_avatars phototristan says:

    If Robinhood folds, getting your funds out of the different banks could be trouble. Much better to just put savings funds in to an FDIC bank directly.

  9. Avataaar/Circle Created with python_avatars Jay Thermo says:

    Robinhood execs: do we have any new ideas for our board meeting.
    Chairman: yeah i’m preparing my packet now, (click youtube…search …graham stephen ….watch 12 min video …close widow) ok got it.
    Meeting: we need to offer options like a bank does and this will be our future.
    Chairman: shweu saved me once again, thanks graham secretly.

  10. Avataaar/Circle Created with python_avatars AltAccount says:

    Fidelity has a Cash Management account and a 2% cash back visa signature card. They are copying Fidelity.

  11. Avataaar/Circle Created with python_avatars AltAccount says:

    Stash is releasing a banking feature to their checking account that will auto partition your money into different spaces. It will make their theme of auto saving money even better. It will be similar to simple.

  12. Avataaar/Circle Created with python_avatars Robert Brawley says:

    I did laugh out loud with your bad joke. I'm not satisfied with internet communication only with some company doesn't have a physical address

  13. Avataaar/Circle Created with python_avatars Johnny Becker says:

    Personally, and this is just me talking about me here, no matter what industry weather it is banking and investing or learning when a new flavor from Baskin Robins is coming out… if I can talk to a live person over the phone, that will get me to seriously consider moving to or using their services. If I can talk to a person here in the United States of America… I don't jump at anything without doing some homework but lets just say I will start doing my homework within 8 hours.

  14. Avataaar/Circle Created with python_avatars Andy Veres says:

    Yea but the original deal was 3%.

  15. Avataaar/Circle Created with python_avatars The_Leveraged_Accountant says:

    first time I'm hitting the like button … and it's because of the lehman brothers joke

  16. Avataaar/Circle Created with python_avatars foreigner in the philippines says:

    Grahm I like your channel but you know full well that the stock market is rigged against Americans yet you have never said a darn thing. You knew we can't day trade on small accounts you knew we can't build wealth any more like the rest of the world but you said nothing assuming the markets will stay stable. even in the midst of a market down turn signal which happened today. You knew the dividend are related to earnings and yet you said it would last forever you are going to wish you had actively managed your assets soon vs being a passive investor. I give it 10 years max 2 short term your investments as a passive investor come back to bite you maybe sooner. the derivatives markets are over 48 quadrillion dollars on your equities. Lets say I am wrong and it is just 80 trillion in equities derivatives. What is your stock worth? you bought the hype. Even I am not sure I won't go to zero and I am not in a stock bubble. Normal prior the last crash was 40x earnings per share was a valid valuation. name one stock on the market that is well known with that valuation? I risk it daily. This is what happens when assets are inflated by 1000 times what they should be

  17. Avataaar/Circle Created with python_avatars Stambaugh Designs says:

    Why would anyone choose to use Robinhood stocks over Webull, save the simplicity?

  18. Avataaar/Circle Created with python_avatars Jordan T says:

    As of 10:55 pm CT, I am 39150 out of 1,066,000 roughly on this RH deal. I jumped over 2k today and haven't checked it in at least a week. Interest is at 1.8 APY. Sounds like people are not caring as much as the APY drops.

  19. Avataaar/Circle Created with python_avatars Owneee S says:

    I know I felt relief and confidence in their new cash management accounts when I saw you didn't make liberal use of your "air quotes," as you did when did discussing their earlier failure " checking" accounts. LOL

  20. Avataaar/Circle Created with python_avatars Blagovest Vlahov says:

    GOOD JOB

  21. Avataaar/Circle Created with python_avatars Rochester Josh says:

    So mysteriously, the APY dropped from 2.05% to 1.8% in a couple months?

    Ouch.

  22. Avataaar/Circle Created with python_avatars elmateo77 says:

    Hard to believe that in America it's legal to just hire the guy who's in charge of regulating you….

  23. Avataaar/Circle Created with python_avatars Christopher Michael says:

    These banke all lowered their rates since you released this vid

  24. Avataaar/Circle Created with python_avatars Gas Station Sushi says:

    How safe is Robinhood with bank info?

  25. Avataaar/Circle Created with python_avatars joe raymond says:

    In 10 min I was blessed enough to experience 6 commercials….. I miss 2008 YouTube

  26. Avataaar/Circle Created with python_avatars Navars says:

    I see the 6 banks associated with this cash management program one bank is Bank of Baroda from India, this banks frauded billions of people’s money in 2018 in India and how this entered in US and this Robinhood
    Be careful people, google if you want proof

  27. Avataaar/Circle Created with python_avatars Damian Atlasik says:

    It is now lowered to 1.8%

  28. Avataaar/Circle Created with python_avatars Priscilla Horne says:

    When u mentioned the banks they were dealing with….I backed out✌

  29. Avataaar/Circle Created with python_avatars Roland Heinze says:

    dude, lower your voice why are you constantly yelling

  30. Avataaar/Circle Created with python_avatars Daniel Martinez says:

    Damn bro!! Nailed it !! Again!!

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