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Robinhood launching Cash Management again, 2.05% APY

491 132 October 8, 2019 at 09:54 AM in Finance (5)
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Zero-fee stock trading app Robinhood is launching Cash Management, a new feature that earns users 2.05% APY interest on uninvested money in their account with the ability to spend it through a special Mastercard debit card. The waitlist opens today in the US with the first users to be admitted soon.

https://techcrunch.com/2019/10/08...anagement/

https://robinhood.com/

I'm not a fan of Robinhood but I think some here might be interested.
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This comment has been rated as unhelpful by Slickdeals users
Joined Jan 2008
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#2
Even if you hate RH, this is a good thing. It will force brokers to raise their money market rates. Schwab is only paying 1.8% right now for example.
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#3
Earn 2.05% APY
  • Your uninvested cash is moved to banks in our program that pay you 2.05% APY*. Like all variable rates, this could go up or down over time.
FDIC Insurance
  • Your cash in the program banks is also eligible for up to $1.25 million of FDIC insurance, or up to $250K per bank, subject to FDIC rules.

Fee Schedule details
https://cdn.robinhood.com/assets/...hedule.pdf

https://robinhood.com/about/cash-management/
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#4
Not yet available. Can only get on waitlist. BTW they tried this last year and failed miserably.
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#5
Am I missing something? Why are people hating on RH for offering interest on their cash?
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#6
Quote from UltraP
:
Not yet available. Can only get on waitlist. BTW they tried this last year and failed miserably.
Their strategy is different this time.
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#7
Quote from Eagles89
:
Am I missing something? Why are people hating on RH for offering interest on their cash?
I don't think that the general consensus is to hate Robinhood. The problem with many of these new financial services companies is a lack experience, planning, and resources. For the small investor it may be okay to utilize one of these startups. Robinhood has had some growing pains and made a very boneheaded mistake when they first introduced their cash management account last year. They claimed insurance when none was available. The product was scrubbed from their website.

Personally, I don't use them nor would I recommend them. Fidelity has the best cash management account with checking, debit card, billpay, etc. They have been offering it for 20+ years. They are financially stronger. I believe they offer better executions and you give up little but maybe a few basis points of interest. With 50K+ of new money you can have totally free trading too.
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#8
/edit nm
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Last edited by steve_010 October 10, 2019 at 12:22 PM.
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