Robinhood recently launched a new cash card that builds on its strategy to democratize finance. This new card gives debit card customers the same benefits and rewards that credit card holders enjoy, while also giving them a way to invest in themselves.
The card will be available to existing cash management customers, and the company is opening a waitlist for new sign-ups as well. It will allow users to automatically invest a percentage or standard dollar amount of their paychecks and get access to it up to two days early.
1. Log in to your account
As part of its mission to democratize finance, stock trading and investing app Robinhood has launched a cash card for customers. The card will give customers the same benefits and rewards that are typically reserved for credit card holders, according to the company’s website.
The card will allow users to invest their money in a variety of assets. For example, they can use their cash card to buy shares in exchange-traded funds (ETFs) or invest in a recommended basket of ETFs developed by Robinhood’s head of investment. The app will also add a bonus to customers’ weekly round-ups, which can be used to invest in more assets.
Those who are already enrolled in the brokerage’s Cash Management product can transition to the new card and will receive an interest rate of 1% on their cash balance. If you are not currently a Cash Management customer, you can still get a cash card, but you will need to open an account first.
Investors who are hesitant to store cash on a robo-advisor should know that the Securities Investor Protection Corporation (SIPC) will not insure money held in the accounts, Bloomberg reports. The SIPC is a nonprofit group that protects customers’ assets from broker dealers, but it does not insure checking and savings accounts like those offered by Robinhood.
Aside from the SIPC issue, some investors have reported that their accounts have been hacked. In one case, a 25-year-old business student in New York said his Robinhood account was drained of $1,400 after being phished. He requested that his last name not be used, and told CNBC that he contacted the brokerage several times about his situation, but had no luck getting an answer.
2. Click on the “Cash” tab
Robinhood has launched a new cash card, which it says is designed to build on its mission to democratize finance by giving debit card customers the same benefits and rewards that were previously reserved for credit card holders.
The Cash Card is a separate account that lets users spend and invest, and is linked to their brokerage accounts. The Card can be used for in-person and online payments, as well as ATM withdrawals.
It also allows users to round up their purchases and invest the change in their choice of assets, like stocks or crypto. It also offers a 10-100% (capped at $10) bonus on each weekly round-up, which it hopes will encourage users to save money.
Investors who want to cash out on their investments will need to do so through a special feature called “Robinhood Gold.” The service moves uninvested money into a bank that is FDIC-insured and offers an interest rate of 3%. The service will be available to all customers who have the latest version of the app.
In addition to the Gold feature, Robinhood is also introducing a new product called “Cash Management.” This product is designed to allow customers to move their cash into an account at a bank. It is a more traditional approach to banking than the company’s previous attempt in 2018.
3. Click on the “Cash Card” tab
If you’re a Robinhood user and are looking to cash out on your crypto investments, the best way to do so is through the Robinhood Cash Card. This card is linked to a spending account separate from your brokerage account, and will allow you to use it for in-person or online payments as well as ATM withdrawals. The card also offers you the option to automatically invest spare change from your spending in your chosen assets.
The card is part of Robinhood’s mission to “democratize finance” by giving debit card customers the same benefits and rewards that were previously reserved for credit card holders. The new card is a response to the finance habits of a new generation that has moved away from credit cards and more towards cash and digital transactions, the company said.
A survey of Gen Z found that only 17% of them prefer credit cards compared to 46% of millennials, and the cash card is intended to help them get started with investing while they spend on things they need or want.
In addition to the cash card, Robinhood is also launching a new spending account feature that will allow you to save and invest money on items from your favorite brands. You’ll be able to choose the merchants you want to spend your cash at and the type of products you want to purchase with your savings.
4. Click on the “Cash Card” button
Robinhood has a number of eye-catching features that make it unique in the market. From crypto trading to extended trading hours, the company keeps adding new products and features to keep its customers happy and engaged.
The company is also a pioneer in commission-free trading, which allows users to trade stocks and cryptocurrencies without paying a commission. They also have a stock lending service that allows investors to borrow shares from other people.
While the company is still a young startup, it has already built an impressive customer base with over 7 million active users. This number is expected to increase as more people discover its services.
To help its consumers save money on their everyday needs, Robinhood has launched a new debit card that is branded as the Cash Card. The card gives you a bonus of 10 to 100% (capped at $10) every time you round-up your change and invest it in a range of assets.
Previously, Robinhood had an option for its Cash Management product, which allowed customers to invest and spend their cash with their brokerage accounts. However, this feature was criticized by regulators and the Securities Investor Protection Corporation for not protecting cash.
In response to this criticism, the company said it was launching a cash card that would be separate from its brokerage accounts and offer FDIC insurance. This new debit card will be available to a select percentage of its existing Cash Management customers starting this week.