Robinhood is an online trading platform famous for its no-fee trades, and purely online presence. Now offering checking and savings. It was launched in 2014 by individuals (like myself) signing up on a “soft launch” list. This soft launch got us access to no-fee trades, albeit on a primitive looking platform and, before the rest of the population. It has grown incredibly fast and now has millions of users.
The Recent History
Robinhood was only accessible on your phone, but in early 2018, they offered another soft launch so that you could access the app on your computer. This made trading easier and people started to take the app seriously.
Then, following the cryptocurrency bubble in December and early January, Robinhood did another soft launch to trade crypto currencies simply with no fees and easy currency exchange. Click here to check it out. This completely changed the game, at least in states that allowed trading of cryptocurrency. Before, there were only “Crypto Wallets” and programs like Coin Base that had a high-trading fee, no option to set limits, and slow trades.
What’s Happening Right Now – Checking and Savings On A Higher Level
Robinhood is having another soft launch, and you have an opportunity to get on the list. This is my reference link that you can sign up under: Robinhood.
Robinhood is offering checking and savings accounts and they are not only game changers but industry changers. Here is what they do and some comparisons.
Most brick and mortar banks, offer .1% interest and have minimums and fees. With inflation at around 3% that means you are losing almost 3% of your money’s buying power every year. Brick and mortar banks most times require a minimum deposit, otherwise they charge you a fee. Also, if you want to make stock trades, or move into other markets, you need to transfer your money out of your account.
Online banks are almost the same as brick and mortar but they get higher interest rates, usually 2% APY. The downside is they are harder to withdraw from because they do not have many, if any, ATMS. This requires time-consuming transfers between accounts that usually take 3 days. And forget about a debit card to your online savings. More on good online bank deals here.
Robinhood is designed to be the best of both worlds. Robinhood is going to give you a minimum of 3%interest APY on your money in your checking and saving account. There is no minimum. There are no fees AND they issue you a free debit card so you can make purchases directly from your onlinebank.
The Downside is Huge
As of now, Robinhood is only covered by SIPC or Securities Investors Protection Corporation, not the FDIC, which most banks are covered by. This means that your money could be at risk depending if Robinhood goes under. Robinhood is great in theory right now, but there is a chance that this move could have gone too far. So, it is prudent to be cautious when determining if you want to put money into the Robinhood account.
Sign up now so you have the option of opening the checking and savings account. You don’t have to put money in, but it’s always nice to have the option. Here is the link to sign up for Robinhood.
