Robinhood launched a new ‘cash card’ debit card with merchant offers for instant savings and roundup matching.
The new Cash Card will replace the existing Cash Management product, where customers’ investing and spending cash were all in their brokerage account. Now, customers can sign-up for the Cash Card, and see separate accounts for investing and spending.
- No fees (fee schedule pdf)
- Earn a 10-100% bonus on your weekly round-ups. And it’s all invested in your choice of stocks and crypto. Round-ups are capped at $100 per week and bonuses are capped at $10 per week.
- Unlock everyday savings: Save money when you shop at some of your favorite spots—no activation required.
- Automatically invest part of every paycheck in your choice of stocks and crypto.
- Mastercard
- Up to $250,000 FDIC insured
- Ability to send checks
- Access to 90,000 fee-free ATMs
Might be a bit interesting for small purchases to make a few dollars on the roundup. And maybe their merchant offers will be decent. These kinds of things of often better at launch and then get watered down, so it could make sense to sign up for the waitlist, especially if you’re already part of the Robinhood ecosystem.
Updates to the Round-ups match
Starting on August 22, 2023, round-ups will no longer earn a weekly match. But you can still invest or stash the rounded-up change from your Robinhood Cash Card purchases at the end of each week.
I just signed up for this after getting a message from Robinhood. From what I can tell you can round up purchases and have it go to a stock account (I picked VTI). I figure if your transaction is under $20 and your round up is more than $0.50 you can come out ahead on small purchases (compared to say a 3% cash back credit card). You probably could just do Amazon reloads to get the max $10 cash back each week.
Why DOC posted something like this……..worthless
“Automatically invest part of every paycheck in [..] crypto.”
What could go wrong.
Guys this card is specifically for zoomers with no financial literacy Robinhood even said so in the press release so all of you whining about gamestomp can please gamestop now
Is their stock still at all time low?
Robinhood always gets shit on for something that they couldn’t control and also what other brokers exhibited as well during that time. I wonder if this entire negative press is funded by the legacy banks to destroy competition.
I love how the most vocal naysayers here have probably never even used RH but are resolutely full-on cancel culture. They’re just like the people who have never had Wells Fargo accounts but insist on reminding everyone about a widely publicized scandal from almost a decade ago that didn’t even affect them.
I don’t use RH much any more, but I opted into the wait list after getting the email yesterday. You can’t abuse a moneymaker if you never try.
Naysayer here. RH was crap since the beginning. The GME saga just showed what kind of company it is. Go for their products if you find a way to make money off of their capital, but never consider them for your real savings/investing. Not worth the headache.
What about all the other brokers that restricted trading? Sofi constantly gets brought up on DoC but is never criticized in the same light. Merrill Edge, Etrade, so many did
I love when a company screws over it customers, the customers complain, but then the customers are considered part of “cancel culture”.
I somewhat agree about the most vocal. But personally, I got into gme a few nights before Elon’s tweet. Lost $6k directly related to their “liquidity issues”, others no doubt lost much, much more. So I’m always happy to see when people are vocal about a scam company. Yes, other brokers paused buying as well and I have a similar opinion about them.
The minute you start introducing new rules into a game that conveniently suits you and your parent company’s poor investment choices, that’s a scam to me. But when you have billions on the line, that’s how it works and it’s nice that the world got to see that, even if nobody remembers in 5 years.
My own infuriation aside though, if it’s profitable and gameable I’d still encourage people to use them.
as
Conrad noted, the expected value is ~0.4, so it could be okay for $1.01 charges (utilities, Amazon GCs).
the other thing is, you can cancel the investment trade, so you get actual cashback, rather than being forced to invest.
This company is a scam.