Robinhood is approaching full-scale financial services. On Wednesday, the company announced a fully online banking platform that will provide checking and savings accounts to Robin Hood Gold subscribers this fall.
A platform called Robinhood Banking allows users to access their accounts and send and receive them through the Robinhood Credit Card app. They even try to make up for the lack of physical space by “delivering physical cash on demand to your gateway.” There is still not much detail on how this works, but Robinhood says, “coverage varies depending on geographical location.”
Robinhood Banking is promised with an account with an annual yield of 4% (APY) and FDIC insurance up to $2.5 million. The company says it offers “pass-through” insurance provided by FDIC member Coastal Community Bank, as it is not a bank of FDIC insurance. According to FDIC, pass-through insurance includes ensuring people’s funds by holding it “at FDIC insurance banks through third parties.”
The service offers individual and joint bank accounts at launch and the option to create a child account. Deepak Rao, general manager and vice president of Robinhood Money, said the platform is designed to “solve many of the challenges Legacy Banks presents.”
In addition to bank accounts, Robinhood is launching a new asset management platform called Robinhood Strategies. It provides access to a combination of single stock and exchange sales funds (ETFs) that are “actively managed to provide access to more opportunities.” This fund has an annual management fee of 0.25% and a $250 annual limit for Robin Hood Gold members.
Robinhood Strategies is available to Robinhood Gold members today, but will be coming to all customers next month. Robinhood Gold is the company’s $5/month (or $50/year) subscription program, offering features such as margin investments and larger instant deposits.
Later this year, Robinhood is also planning to launch an AI-powered investment tool called Gold Subscriber Cortex. It provides analysis and insight into the current market, including why certain stocks are rising and falling, and stocks to consider trading.
Over the years, Robinhood has transformed from a simple investment app to an all-in-one hub for users’ finances. The company launched credit cards in 2024 as part of an effort to encourage people to maintain their money within the growing Robinhood ecosystem. There, you store and withdraw cash to invest in the app.
