Financial Samurai - Forums

Financial Freedom => Family Finances => Topic started by: gwurtz67 on December 13, 2018, 12:50:18 PM

Title: Robinhood 3% interest on savings and checking
Post by: gwurtz67 on December 13, 2018, 12:50:18 PM
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
Title: Re: Robinhood 3% interest on savings and checking
Post by: Jon Sharpe on December 13, 2018, 04:06:53 PM
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.
Title: Re: Robinhood 3% interest on savings and checking
Post by: Sam on December 13, 2018, 07:36:32 PM
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.
Title: Re: Robinhood 3% interest on savings and checking
Post by: 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
Title: Re: Robinhood 3% interest on savings and checking
Post by: Hayden on December 19, 2018, 12:34:14 PM
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.