Robinhood unveils plans for new banking products2025-03-27 19:19 by DanielaTags: Robinhood
Robinhood is getting closer to becoming a full-fledged financial service. On Wednesday, the company announced a wholly online banking platform that will offer checking and savings accounts to Robinhood Gold subscribers when it launches this fall. The platform, called Robinhood Banking, will let users access their accounts, as well as send and receive money through a dedicated app. It even attempts to make up for not having a physical location by having physical cash "delivered on-demand right to your doorstep." There still aren't many details about how this will work, but Robinhood says "coverage varies based on geographic location." Robinhood Banking promises a 4 percent annual percentage yield (APY) and FDIC insurance of up to $2.5 million on accounts. The company notes that since it's not an FDIC-insured bank, it's offering "pass-through" insurance provided by FDIC member Coastal Community Bank. Pass-through insurance involves insuring people's funds by holding them "at an FDIC-insured bank through a third party," according to the FDIC. The service will offer individual and joint banking accounts at launch, along with options to create children's accounts. Deepak Rao, Robinhood Money's general manager and vice president, says the platform is designed to "solve many of the challenges presented by legacy banks." Read the full Reuters story -here-
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