Robinhood is launching bank accounts that will deliver physical cash ‘to your doorstep’

Robinhood is getting person to becoming a full-fledged fiscal service. On Wednesday, the institution announced a wholly online banking level that volition connection checking and savings accounts to Robinhood Gold subscribers erstwhile it launches this fall.

The platform, called Robinhood Banking, volition fto users entree their accounts, arsenic good arsenic nonstop and person wealth done the Robinhood Credit Card app. It adjacent attempts to marque up for not having a carnal determination by having carnal currency “delivered on-demand close to your doorstep.” There inactive aren’t galore details astir however this volition work, but Robinhood says “coverage varies based connected geographic location.”

Robinhood Banking promises a 4 percent yearly percent output (APY) and FDIC security of up to $2.5 cardinal connected accounts. The institution notes that since it’s not an FDIC-insured bank, it’s offering “pass-through” security provided by FDIC subordinate Coastal Community Bank. Pass-through security involves insuring people’s funds by holding them “at an FDIC-insured slope done a 3rd party,” according to the FDIC.

The work volition connection idiosyncratic and associated banking accounts astatine launch, on with options to make children’s accounts. Deepak Rao, Robinhood Money’s wide manager and vice president, says the level is designed to “solve galore of the challenges presented by bequest banks.”

In summation to a slope account, Robinhood is launching a caller wealthiness absorption level called Robinhood Strategies. It volition connection entree to a premix of azygous stocks and exchange-traded funds (ETFs), which “are actively managed to supply entree to much opportunities.” The funds person a 0.25 percent yearly absorption fee, with a yearly headdress of $250 for Robinhood Gold members. 

Robinhood Strategies is disposable to Robinhood Gold members today, but it’s coming to each customers adjacent month. Robinhood Gold is the company’s $5 per period (or $50 per year) subscription programme that offers features similar borderline investing and larger instant deposits. 

Later this year, Robinhood besides plans to motorboat an AI-powered concern instrumentality called Cortex for Gold subscribers. It volition supply analyses and insights astir the existent market, specified arsenic wherefore a peculiar banal is going up oregon down, arsenic good arsenic which stocks to see trading.

Over the years, Robinhood has transformed itself from a elemental investing app into an all-in-one hub for users’ finances. The institution launched a recognition card successful 2024 arsenic portion of efforts to promote radical to support their wealth wrong the widening Robinhood ecosystem, wherever they’ll present beryllium capable to store and retreat currency to marque investments connected the app, too.