Is Robinhood’s “Checking and Savings” really a bank account? Let’s find out
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Doh! Almost minutes after I uploaded my video on December 14, 2018, Robinhood dropped the “Checking & Savings” name, deleted the checking(dot)robinhood(dot)com subdomain, and have changed their website header to “Cash Management”
That didn’t last long!
Still, if you are curious what all the fuss was about over the “Checking & Savings” feature announced by Robinhood, this video will get you up to speed on the controversy.
With Checking & Savings, Robinhood says you earn 3% on your money, pay no fees, and access more than 75,000k ATMs.
You can also pay bills, send and receive checks, transfer money, and set up direct deposit–all from the Robinhood app
Every Robinhood account is SIPC insured up to $250,000 in cash and protected by modern encryption.
This all sounds great, but there are some important details that aren’t addressed that I feel you should be aware of!
Until customers get clarity on these concerns, I won’t be opening a Robinhood account to use their “Checking & Savings” feature.
Robinhood Checking & Savings
Banking Supervision from the Federal Reserve Education
Who is the FDIC?
Who Regulates Brokers:
What SIPC Protects
Robinhood Seeks to Take On the Banks With a 3% Rate, but There’s a Catch
What are money market funds?
Fidelity Investments Prospectus and Shareholder Reports
Fidelity Cash Management FAQ
TD Ameritrade Summary of Cash Sweep Program