3 Unique Perks: Robinhood Is Offering Gold Members 1% Match on All Deposits, a New Credit Card, and More
KEY POINTS
- Robinhood Gold members now earn a 1% match on all deposits into their taxable brokerage accounts, with no cap on the match amount.
- Members' deposits are insured up to $2,250,000 through Robinhood's partner banks, providing enhanced protection for larger account balances.
- The new Robinhood Gold Card offers a flat 3% cash back on all purchases, but is exclusively available to Robinhood Gold members.
Big news for users of Robinhood, the online stock brokerage. At the recent "The New Gold Standard" event, CEO Vladimir Tenev announced a banker's brunch of upgrades to the Robinhood app, especially for Robinhood Gold subscribers.
On the menu: a credit card that offers flat 3% cash back on everyday spending, a boost to FDIC insurance, and a 1% deposit match on all brokerage deposits. Most of these perks are rare, if not unique to Robinhood.
We know -- it's a lot to digest. Basically, Robinhood Gold members get more options and better rewards. Read on to dig in, starting with the 1% deposit match.
Robinhood Gold is a $5 per month subscription add-on for users of the Robinhood investing app and delivers excellent value. Subscribers receive Robinhood's highest savings rate on uninvested cash, access to professional investing research, higher deposit limits and 3% match on Robinhood retirement IRA contributions.
$5 monthly
N/A
Get a 3% match on IRA contributions each year with Robinhood Gold
On Robinhood Gold's Secure Website.
1% deposit match for Robinhood Gold members
Robinhood members already get a 3% match on retirement account (IRA) deposits. The stock trading app has added a new perk to match: a 1% match on all deposits into regular brokerage accounts. Deposit $100 into your taxable Robinhood brokerage account and earn $1.
There's no cap. If you deposit $100,000 into your taxable brokerage account, you'll earn an additional $1,000. Robinhood Gold members earn more no matter where they put their money, making the $5 monthly membership much more valuable.
This perk pays for itself fairly quickly. To recoup the cost of a Robinhood Gold membership, you must deposit $6,000 into your Robinhood taxable brokerage account or $2,000 into your Robinhood IRA annually.
The catch is that you'll need to keep your deposits on the Robinhood platform for two to five years (taxable account vs. IRA) to earn the full match -- If you immediately move assets to a rival stock broker, Robinhood will revoke some or all of your match rewards.
FDIC-insured deposits up to $2,250,000
Robinhood has shored up a gap in its insurance policies. Previously, the FDIC covered account balances up to $1.25 million through its Cash Management account. As of late 2023, Robinhood members who opt into Cash Sweeps can deposit up to $2,250,000 into their brokerage account without fear of losing their money if Robinhood goes under.
The money is insured through Robinhood's network of partner banks. As usual, Robinhood Gold members who opt into Cash Sweeps earn 5% rewards on their brokerage cash balance, a neat perk. By the way, this boosted insurance is available as of right now.
Robinhood credit card: 3% cash back on everything
Robinhood has a waitlist for its Robinhood Gold Card, a credit card with low fees and big rewards. The biggest perk is a flat 3% cash back on purchases, which is generous compared to other flat-rate rewards cards. The biggest downside is that the card is exclusive to Robinhood Gold members, which means paying the membership fee.
A Robinhood Gold membership costs $60 annually. You'd have to spend $1,200 annually to earn $60 worth of rewards unless you book travel through the Robinhood travel portal, in which case, you'll recoup the membership fee even faster.
The real sticky bit is you've got to open two accounts, a Robinhood brokerage account and a Robinhood credit card account, to get the Robinhood Gold Card. For some, that's too many hoops to jump through.
Robinhood is rolling out these perks soonish (exact dates TBD). Interested members can apply for the Robinhood Gold Card waitlist through the app (and potentially win a solid gold credit card). Keep an eye out for 1% deposit matching -- it could boost your long-term savings quite a bit.
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Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
You must have compensation (wage income) in order to contribute to an IRA.Funds being contributed into or distributed from retirement accounts may entail tax consequences. Contributions are limited and withdrawals before age 59 1/2 may be subject to a penalty tax. Robinhood does not provide tax advice; please consult with a tax adviser if you have questions.
The Robinhood IRA is available to any U.S. customer with a Robinhood brokerage account in good standing.
All investments involve risk and loss of principal is possible.
Limitations apply to both types of retirement accounts. Please see the IRS's IRA Deduction Limits for more information.
The 3% matching on contribution requires a subscription with Robinhood Gold (fees apply), must be subscribed to Gold for 1 year after your contribution to keep the full 3% match. You must have compensation (wage income) in order to contribute to an IRA. The funds that earned the match must be kept in the account for at least 5 years to avoid a potential Early IRA Match Removal Fee. For more information refer to the IRA Match FAQ.