https://www.cnbc.com/2018/12/13/robinhood-goes-after-banks-with-checking-and-savings-accounts.html


After they have been around for almost 5 years with 0 fee trading it seems like RH is taking on banks offering one of the best Savings & Checking account Int rates that you can find. Anyone else on here use RH for stock trading?

Beats the heck out of sitting in a savings account drawing 0.01 interest. There's too many options with 2+% to leave money in any other savings account in my opinion

That's a great rate for a savings account. It will force other online savings banks to up theirs as well. My Ally account has had several raises in the last year or two already.

Buyer beware, accounts not FDIC insured.

Exactly.

Ouch...

As little as I have, it probably won't matter.

+1. I also use Ally. Currently at 2.0%. Nothing to write home about, but on the whole a great bank.

And thats what I was looking for in the articles. I could not see where it said it was FDIC insured... In that case I am out.

Great rate though. I am at 1.5% with Capital One 360 Savings online deal and thought that was pretty good. Min. of 10k though otherwise its 1%.

Going to look into Ally if yall are getting 2%. Gotta check that out.

I just checked I am getting 2% at Cap One as well... BUT I see PNC has 2.35% with no fees or mins. AND its insured.

Check that one out. Seems to be the highest one out there at a quick glance.

Ally also allows you to have a brokerage account with really reasonable rates to trade.

While RH is not FDIC insured, they are a brokerage firm after all, they do have SIPC. Here is a quick run down on the difference, https://www.schwabmoneywise.com/public/moneywise/essentials/understanding_fdic_and_sipc_insurance, if the firm (RH) fails financially you are covered under the SIPC. While there are differences between the two, and one needs to read up and understand, you are not left out to dry if RH fails.

while reasonable rates are nice, and usually bigger firms offer a lot of extra along with their accounts, it is nice to pay $0 in fees on RH. As i posted above, people need to do a little research on SIPC to understand it before they completely blow off RH.

Edit: To note i have also done some Option trading on RH, something they didnt offer initially

I looked into RH much further than I have before. I believe I'm going to open an account. I might even completely go against all my advice I've ever given, and buy a few individual stocks. Just for fun.

The checking/savings account isn't even available yet. It's going to come on line sometime in 2019. I'm in and investing. Scary easy to set up. I've already made 24 cents.