Does Robinhood Make Sense As A Savings Account?
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- Опубликовано: 16 июл 2024
- Robinhood's offerings keep getting better and they currently pay 5% APY on uninvested cash, plus it's FDIC insured! So it is a workaround for the best savings account, especially if you're interested in Robinhood Gold anyway? Or are there enough reasons to avoid it and put our cash elsewhere?
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⏱Handy Timeline:
0:00 Robinhood Cash
0:18 What we know
0:30 How it works
2:00 What is changing soon
3:36 How it's NOT a savings account
3:55 How fast is it available?
4:15 When its not a good option
4:32 More benefits with Robinhood Gold
5:09 How much do you need deposited to cover the cost?
5:45 Its NOT the Robinhood spending account
6:28 Other similar options
7:00 My opinion
7:42 Next video about cash
Robinhood Gold FAQ: robinhood.com/us/en/support/a...
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I have 15k just getting interest and growing with dividends in RH.
That's a solid strategy. Have you looked into other tools that might complement your investments? I heard Tori Wallet is awesome
I feel it ESPECIALLY makes sense for those who maintain the 25K needed to freely day trade.
Gold only makes sense if you take advantage of all that they offer: IRA Match, upcoming 1% boost and their 3% CC. (IMO). If you do then it makes complete sense to keep Gold. Otherwise many other places offer similar rates. Fidelity is actually a little over 5% in their money market fund. They offer a 2% CC. No monthly fee. So just depends what people want to do. If you use their ecosystem its definitely beneficial
For me yes, I have put my emergency funds (not all of it) in that account for generating some money because of the fast transfer between my account of 1-3 businesses days. Overall it’s not really 5% when you have your pay 60$ annually. Just to get that 5% you need to be at 15k to atleast get the 4.9% of getting that full 5% annual rate. Anything lower than that your facing lesser than 5% apy
Then I'd recommend Tori Wallet. Trust me!
Well if you compare it to the 4% national HYSA, that means you only need that "1%" for it to be worth it. Since I'm lazy, I'll do the lazy calculation of dividing $60 by .01, which is 6K. So you just need to put at least 6K in there, and also leave the interest in there, for it to be worth it using RH over other HYSA's. And since its a sweep, there aren't limitations to it compared to other HYSA's.
actually went and did this yesterday. moved my efund to robinhood which will take a week or so. its one part too lazy to open another account when this one already existed and wanting the credit card. considering moving my roth there for the match as well. with my rate locked at 5 a month (cant make it yearly 50), i only need to keep 1200 uninvested to pay off the gold. naturally, anything from my efund is going to be uninvested and therefore well above that 1200. still have my old robinhood debit card (another year before it expires), but im hoping to get the other cash card to replace it in addition to the cc im on the waitlist for.
It makes sense if you have over 10-15k to just park there. I personally just moved my business emergency fund and my attempt at a house downpayment over there and for me it makes sense assuming the rate stays the same. The $50 annual fee is negligible when you have a significant amount of money in there but if you only have a few hundred or maybe a grand or two forget about it.
Thank you brother, I am so happy I found you and subscribed 💪🏽💪🏽
Makes sense kind of. Take the percentages from base members and give it to the Gold members who really matter 😎
Great stuff sir!
Hi guys! I currently have a RH Cash account do I need to switch it to Margin account?
I just wanna know why you were holding an ax
Where are you seeing $5 per month for gold? The current gold offer I’m seeing is $6.99 per month or $70 if you pay upfront for a year.
In my own account settings screen it says that
$5 per month
@@BrendanEvan Gotcha. Well, in case you weren't aware, that doesn't seem to be what is currently offered to new users.
@kyletgarrett it’s so interesting because when I was making this video I searched all over their site trying to find the price listed somewhere and couldn’t. I think they might be keeping their options open to target people with different pricing.
$5 for me and I subscribed for the first time March 11th. @@BrendanEvan
@@BrendanEvan yeah I can see that. Well, looks like prices are going up for newcomers to Robinhood Gold like myself. I've read a few posts on reddit where people were also commenting on the increase
If I have no intention on investing the money can you legally leave your savings in RH Gold and never invest it, then remove it when the apy lowers?
As far as I know, absolutely
Is individual cash the same as buying power in RH ? Which earns that 5% ?
No, buying power includes margin
robinhood.com/us/en/support/articles/settlement-and-buying-power/
@@BrendanEvan Just to update info. The earning balance 5.25% is from Individual cash (withdrawable cash ) uninvested portion of Buying power ! You can't activate margin nor day trade more than 5 trades a trading week, otherwise you lose the earning benefit ! So it uses unused Buying power cash, and yes you do have access to swept earning cash ! It's not locked.Also it takes 2 bus days to update, so the earning cash balance may not change for 2 days.If you just sign up for gold it takes 2-3 bus days showing $0.00 and then it will appear the swept earning cash balance.
Does RH match the 3% IRA also with roll-overs or just annual contributions?
Not currently, they did have a promotion that ended a couple months ago that I’d taken advantage of. There’s of course a chance they bring it back sometime
Does cash in your Roth or traditional IRA make the 5% too or just the traditional account?
No just taxable brokerage account
if you’re looking for flexible and competitive options for your cash, you might find Tori Wallet interesting.
Also missing the part that the interest is paid only on stock market working days. No interest on holidays or weekends
Wait what!? So if I have 20k in RH (uninvested funds) at 5% interest and 20k in a bank that offer 5% interest and both were opened at the same time, I should have the same amount of interest earned in one year (minus the Gold fee at RH). Correct?
@@AmitroniX I think Rh balance would be lower as they don't pay on holidays and weekends
I would stick with Acorn for the saving part. Or stick with a brokerage like Schwab and get into money market accounts will get you higher apy then a high saving account and you have more control over your money.
How much apy?
Thanks! I couldn’t figure out WTH M1’s “cash account” was. It also earns 5%, but isn’t a savings account. Thank you for the thorough explanation.
Also, Betterment raised their rate to 5%.
I am currently sitting 1.5k negative from a hot stock tip from “uncle Larry” 😂
Uncle Larry needs to keep his mouth shut
@@BrendanEvan agreed 😂
i put my 5 billion dollars in robin hood and when I woke up, i pooped
pics or it didn't happen
@@BrendanEvan A 4k HD video of it will be appearing on a Times Square billboard sometime in the year 2048
12,614,400 minutes from now, got my timer set
if i invest then I get monthly 5% back, is this correct?
let's say what if i invested kept it for 2.5 months, that means I'll get 5% for first two months. Is there a requirements to keep money in robinhood gold for certain period of time. Any experienced person. would love to hear from your experience.
No, that’s not correct. This is functions like a savings account, so the cash sitting there NOT invested, gets you 5% annually.
You shouldn't be using it like a savings account. You should be making money where you can on the market and then getting the interest whenever you get it. People keep using this cash sweep thing as a savings comparison, but like you can make $5 on a trade and that's 1 day. Then you can do it again the next day, and the next day. Sweep program is supplemental income it should not be your income.
I think your comparison to the Webull and M1 is a false equivalence, because you are only thinking about the 5% APY on the uninvested cash, but you are not considering the gold card you would now have access to, which is offering the best cashback percentage on the market, as well as the IRA 3% match that you also have access to as a gold member. I think a better dilemma to figure out is the opportunity cost of having $1200 uninvested dollars just sitting there to offset the monthly fee. Am I doing this wrong? Maybe I am missing something? Someone please correct me if I am wrong, because I am truly considering getting the membership and the gold card. I would literally put my other credit cards out of commission, and use that gold card for everything, and pay it of weekly to avoid paying any interest.
They are separate products so I tried to isolate them, but you're right, it's going to become part of RH gold in the very near future so its worth factoring in a bit!
Do you know how often Robinhood will actually deposit that 5% interest into my account?
End of every month
They tell you when it will be deposited. But it's once a month at the end of the month.
Also good to note, 5% apy will only be (5/12)% per month
If I want to have 100k just to collect interest is it save to leave it in Robinhood?
Unfortunately I can't predict what is perfectly safe or not
As long as the banks your money is being swept into maintain their FDIC status, it should be
So if I have $50,000 in my account will I earn $2,500 every month or every year with Robinhood gold 5% APY?
The Y in APY stands for Year so it’s 5% per year. You get a chunk of that each month