The Robinhood app for iOS and Android allows users of those two platforms to make commission free trades on stocks, options, ETFs and Cryptocurrencies. Now, after shaking up the brokerage industry, Robinhood is going after the banks. Today, the company announced that it has launched Robinhood Checking & Savings and is paying a market leading 3% interest on deposited funds (the average bank pays only .8%).
Those opening an account with Robinhood Checking & Savings will pay no fees, have access to around the clock customer service, be able to take out cash from 75,000 free ATMs and receive a free debit card. There is no minimum balance.
In case you are wondering, these accounts are insured by the SIPC,not the FDIC. This means that if you open an account with Robinhood Checking & Savings, you’re essentially opening a brokerage account with banking features. The SIPC protects up to $500,000 ($250,000 in cash).