#Cash sweep program robinhood for free#

We've shifted much of our cash reserve to 6mo and year bills recently and 1% deals aren't worth opening new accounts now IMO, especially if it's anything more complicated than just a bank account. Often in a stable or falling rate environment competitive forces result in the best FDIC insured demand accounts handily beating 6 mo or even 1yr T-bills, but not now true of a 1% rate IMO unless you put an extraordinary emphasis on being to withdraw at any time at guaranteed absolute 0 gain/loss and no minor tax event to record on your return. True, the key point isn't how you like RH, it's that 1% is not good now compared to T-bills for money you can even slightly* tie up for even 6 months. Their marketing/statements about them being the only ones to democratize investing turn me off however.

I think RH is a fine brokerage for some things if you can tune out their noise. My guess is at the current rate of increases the notable high yield savings accounts and money markets will be at or above 1% in the next few months.

#Cash sweep program robinhood for free#

Robinhood: Best for free stock promotions. The daily interest rate is 8 divided by 360. For funds not needed in the next few months you can buy a 3 month t-bill yielding almost 1% or a 6 month bill yielding around 1.3%. cash sweep program allows Robinhood Gold members who opt in to earn 4. If you already have an established brokerage account someplace like Vanguard, Fidelity or Schwab I don’t see how this is remotely interesting. Of course, the Fed rates should help as well, I hope. Robinhood I need to have a margin account so that I can trade with unsettled. But 1% is a welcome change for cash I wonder if this will spur some of the other HYSAs to up their rates. cash transfers that is electronic transfers from one bank to another can.

I earn more than this with my emergency fund because I use mostly short-term fixed-income rather than cash. No harm in earning a few hundred dollars more on an emergency fund for no extra work. It's easy enough to transfer and since it's FDIC insured there is no downside. That said, the app itself is great and intuitive to use, I believe it's fine for those who can avoid the allure of day trading and margin.Ĭool, thanks for posting. I know the Bogleheads aren't fond of Robinhood in general, I only use the app for play money. This isn't going to replace my savings account, but I may shift some funds over until Ally catches up. They handle the sweep so all you have to do is transfer your money into your regular sweep account. I went ahead and signed up and the process was super easy. Yesterday I got an email from Robinhood that they're going to offer 1% on brokerage settlement accounts, FDIC insured.