Robinhood Just Announced 3% Savings Accounts
They just blew money market funds out of the water.
March 2019 Update: Robinhood is no longer offering the savings account for anyone. You can still read the original article below.
Disclaimer: links to Robinhood are referral links and benefit us both.
Today, Dec 13th, 2018, Robinhood just blew most other savings accounts out of the water, and most other money market funds out of the water as well. My credit union gives a measly .5% rate. However, with a Robinhood savings account, you’re getting guaranteed returns of 3% — that’s insane. You can sign up for this checking and savings account here and also get a random free share of stock!
They give you a snazzy debit card (pictured above) to go with your new account, but hurry because different styles of debit cards are limited! There were only a few thousand Robinhood-green debit cards left by the time I signed up. It’s a strange little gimmick, but I love it.
Additionally, you have a few ways to move up and get priority access. You can hilariously just tap the debit card on your phone, where every tap increases your spot in line by one position. Or, you can invite your friends with a referral link and they can bump you up.
While there are no physical Robinhood branches (and thus saving a lot of overhead which translates into your 3%), there is access to over 75,000 free ATMs. There’s no overdraft fee and no foreign transaction fee. There’s just no fees. It’s just a huge move to capture more of the market, and I welcome it.
At any rate, with a guaranteed 3% yield and insured up to $250,000 with no fees, this seems like a no-brainer to make the switch if you’re not getting this sort of rate elsewhere.