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Robinhood 3% interest on savings and checking

Started by gwurtz67, December 13, 2018, 12:50:18 PM

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gwurtz67

Check this out - wonder if this will be a game-changer as 3% is currently more than Treasury Direct i-Bonds or Vanguard Prime Money Market.

https://www.cnbc.com/2018/12/13/robinhood-goes-after-banks-with-checking-and-savings-accounts.html

Jon Sharpe

Wow, that's crazy! I don't see how they are making any money. I wonder how long investors will hang on. It seems they are taking the Amazon model to consumer financial services.

Sam

It's big news and a lot of people have asked me about it as well. Cash is a big business and they are smart to make these headlines and subsidize its users with this user acquisition strategy. The thing to be careful about is not losing much more than the savings rate premium Trading and Account. Robin Hood is dominated by younger investors who like to whip it around. And over the past several months, a lot of investors/traders have been destroyed.
Regards,

Sam

Sam

SIPC not guaranteeing theses investments posed as cash

https://www.bloomberg.com/news/articles/2018-12-14/sipc-says-it-has-serious-concerns-about-robinhood-s-new-product
Regards,

Sam

Hayden

Quote from: Sam on December 14, 2018, 05:32:51 PM
SIPC not guaranteeing theses investments posed as cash

https://www.bloomberg.com/news/articles/2018-12-14/sipc-says-it-has-serious-concerns-about-robinhood-s-new-product

I saw this just after you posted it. This is not a good account to use for storing your money. I am sticking to CIT bank.
Very Respectfully,
Hayden