Robinhood Cash Management Account Review (2024)

Editor’s note: Robinhood Cash Management is no longer available to new customers. Existing Robinhood Cash Management customers can continue to use their account for now.

Robinhood’s Cash Management account, offered through Robinhood Financial, is one of the many offerings available through the online brokerage firm. Cash management accounts, like this one from Robinhood, aren’t bank accounts. Rather, they are an alternative to traditional banking, allowing you to spend, save, invest and earn interest all from one account.

This review provides an overview of Robinhood’s cash management account, its features and how it compares to the competition. Account details are accurate as of May 9, 2024.

Account Basics

Robinhood Cash Management Account

Robinhood Cash Management is an interest-bearing account that offers features similar to checking and savings accounts. Notably, this cash management account is a feature within Robinhood’s brokerage account, so there’s no additional sign-up required to access the account if you already have a relationship with Robinhood. But this means that you must open a brokerage account with Robinhood to access its cash management account. As a feature of the brokerage account, customers can quickly transfer funds from one account to the other.

The account offers 0.01% APY variable interest rate (as of May 8, 2024). Interest on the account is paid monthly. Keep in mind that you can find much higher rates at some of the best online savings accounts.

Robinhood keeps fees low on its Cash Management account. There are no account minimums to meet, no overdrafts and no transfer fees. There are also no:

• Monthly maintenance fees
• Inactive account fees
• Foreign transaction fees
• New card fees

Robinhood is not a bank, so it doesn’t offer FDIC insurance itself. As with most cash management accounts, Robinhood Cash Management deposits are insured well beyond traditional FDIC limits through a deposit sweep program. As customers deposit funds, the funds are swept to partner banks where the money is insured up to $250,000 per bank (including deposits already held in the bank), for a maximum of $2.25 million. Robinhood’s partner banks include:

• Goldman Sachs Bank USA
• HSBC Bank USA, N.A.
• Wells Fargo Bank, N.A.
• Citibank, N.A.
• Bank of Baroda
• U.S. Bank, N.A.

One thing to note is that Robinhood doesn’t monitor deposit totals in partner banks. Depending on deposit amounts and whether you have existing funds already with a partner bank, you could exceed the insurance coverage limit. Customers should pay attention to where deposits end up to help ensure all of their money is FDIC insured.

Robinhood Cash Management comes with a complimentary customizable debit card issued by Sutton Bank. You can use the card the same way you would a debit card issued by any bank. Robinhood customers have access to over 75,000 ATMs, including more than 15,000 international ATMs, through a partnership with Allpoint and MoneyPass.

Unfortunately, there’s no option to deposit cash into your account through an ATM. Also, Robinhood charges a $2.50 fee for all in-network and out-of-network ATM withdrawals. However, you can be reimbursed if you received at least $300 in direct deposits during the 34 days prior to the withdrawal.

Customers can also opt for a virtual debit card only if they prefer not to have a physical card. While this keeps you from accessing funds via ATM, you can still participate in online transactions or link your virtual card to popular payment apps like Apple Pay, Google Pay and Samsung Pay.

Robinhood Cash Management allows customers access to many features they get from other bank accounts like direct deposit, online bill pay, online shopping and more. The account doesn’t come with a checkbook.,Account holders previously had the ability to pay bills by check through Robinhood, but Robinhood discontinued that service in June 2024.

Other Robinhood Accounts and Services

Robinhood’s primary product is its taxable brokerage account. All of the robo-advisor’s offerings flow through the brokerage account. Through a Robinhood brokerage account, customers can invest commission free in:

• Stocks
• ETFs
• Options
• American Depositary Receipts (ADRs) for over 650 globally listed companies
• Cryptocurrency

Robinhood Gold is a paid subscription available to its customers. With Robinhood Gold, customers have access to additional tools and features like:

• Bigger instant deposits (for eligible customers)
• Professional research from Morningstar
• Level II market data from Nasdaq
• Margin investing (for eligible customers)

Robinhood Gold costs $5 per month, which includes the first $1,000 of margin. Customers that invest on margin pay an additional 8.00% yearly interest on margin use above $1,000.

Read our in-depth Robinhood review for details on investing and retirement accounts through the robo-advisor.

Access on the Go

Robinhood accounts are accessible through its mobile app, available on iOS (4.2 stars out of 5 on the App Store) and Android (4.1 stars out of 5 on Google Play). Through the app, Robinhood customers using the cash management feature can:

• Set up direct deposit
• Transfer funds
• Pay bills
• Send checks

The mobile app is also where customers can invest in Robinhood’s various offerings, view transaction history, access account statements, use trading tools and more. Although Robinhood partners with banks for its cash management account, there is no option to deposit checks through its mobile app.

Robinhood offers customer service, but options are somewhat limited. It has 24/7 support, but it’s not live support. Through the app, customers can walk through myriad questions before choosing to receive email or phone support for their issue. Robinhood says it typically responds to phone support requests within 30 minutes and email requests within one trading day.

Customers also have access to a knowledge base of articles through the Robinhood website. If you have general questions about Robinhood or its accounts, chances are you’ll find the answer you’re looking for there. You can also send direct messages via Twitter to @AskRobinhood.

Pros

• Fairly competitive APY
• No monthly service fee
• FDIC insured up to $2.25 million
• Large ATM network
• No minimum balance requirements

Cons

• Robinhood Cash Management isn’t available to new customers
• No mobile check deposit
• Limited customer service options
• $2.50 ATM fee

How Robinhood Stacks Up

Robinhood Cash Management gives customers access to many convenient banking features, like direct deposit, online bill pay and a debit card. The account also earns a fairly competitive high-yield interest rate, making it one of the best cash management accounts around.

But the account is no longer available to new customers. And it lacks mobile check deposit and doesn’t come with checks, although Robinhood will send checks on your behalf at no cost. Using Robinhood Cash Management allows you to deposit large amounts of money with extended FDIC insurance limits.

Robinhood brokerage accounts offer features not found with some online brokers, like the ability to buy fractional shares and no commission fees on cryptocurrency. If that’s something of interest to you, check out Robinhood. The cash management feature is part of the brokerage account, but it isn’t a requirement to use Robinhood. If you’d rather not keep extra money in the account, there’s no requirement to do so.

Frequently Asked Questions (FAQs)