Robinhood is expanding its financial services by introducing a fully online banking platform. This fall, Robinhood Gold subscribers will have access to checking and savings accounts through Robinhood Banking. The platform allows users to manage their accounts and transfer money via the Robinhood Credit Card app. A unique feature is the option to have physical cash delivered directly to their doorstep, though details on this service remain limited and depend on geographic location.
Robinhood Banking offers a 4% annual percentage yield (APY) and up to $2.5 million in FDIC insurance through Coastal Community Bank. Although Robinhood itself is not an FDIC-insured bank, it provides pass-through insurance for its customers. The service will initially include individual and joint accounts, with the ability to create children’s accounts. According to Deepak Rao, Robinhood Money’s general manager, the platform aims to address issues associated with traditional banks.
In addition to banking services, Robinhood is rolling out a wealth management platform called Robinhood Strategies. This service provides access to actively managed single stocks and ETFs with a 0.25% annual management fee, capped at $250 for Robinhood Gold members. Robinhood Strategies is currently available to Gold members and will be open to all users next month. Later this year, Robinhood plans to introduce Cortex, an AI-powered investment tool designed for Gold subscribers to analyze market trends and suggest trading opportunities.
— news from The Verge