Maybe I missed the detail, but what is a “deposit”? An ACH or other transfer that hits the Robinhood account for any amount of time? Or it must remain there?
So what if someone already has 10k in robinhood with gold. Will they get the boost or is it only new deposits? If so I guess you could take it out and wait for the boost to come, but then you lose the 5% APY
Interesting. A lot hinges on that transfer v deposit language. I think I'd probably pay at least 1% in taxes on my longer term holdings if I sold and bought, but the basis would get stepped up. But if I could transfer it, then it would be a no brainer like the Roth IRA match. I'm not sure why Robinhood would care whether it's transferred or a new deposit except that people worried about the transfer v deposit distinction might be more likely to be buy and hold investers who don't make Robinhood much in terms of payment for order flow.
Brother another great video. Do you think you could make a video of the “5.25/5%” apy. Just a clarity video from you explaining if you just put money into Robinhood and let it sit there you get the 5%? Or what are the rules exactly for that? Is it like a high yield savings account? I’m about to get gold because of your videos but just a little confused on that part of it.
I use my brokerage as my HYSA for 5.25%. You just need to be disciplined to keep x% of your brokerage money sitting and not FOMO into stocks. It’s great. I’ve also rolled my and my spouses IRAs over for the 3%. On the waitlist for the new gold card as well for a new daily. Keep my Amex Gold and Plat for food and travel. BILT card for rent. USAA 4% on gas Amex for fuel, and Future card for my spouses EV charging and our utilities bill 5% cash back.
Just have to be a Gold member and not break the pattern day trader rule and enable sweeps program and you'll start earning the 5% accruing daily and paid monthly
Where is Robinhood getting all this extra cash to throw at customers? Their investors must be forking it over. Meanwhile, M1 seems to be cutting costs. 🤔
They’re playing the long game. Giving bonuses spread out over a certain amount of time. Giving an IRA match as long as you hold it there for 5 years… essentially a lot of people are going to be switching to RH and staying for a long while… what will they do with all of this new money? Invest it, giving the user back a small percentage through incentives.
Robinhood makes money from people investing. The money that sits in peoples accounts they make interest on. Also, their main money maker is payment for order flow, which means they make a small percentage of profit from every trade that everyone does. Say you buy VOO, they send that request to Citadel, who actually processes the trade, and pays Robinhood for using them. It’s probably less than a penny for the typical user, but it makes them hundreds of millions a year.
@@minimal2224 it’s actually the exact opposite. Robinhood is doing very well, in fact, they just purchased East a large credit card company to expand even more. Don’t spread misinformation.
If it’s a 1% match on instant deposits that’s an even bigger reward! It’s worth the $6 a month for just the 3% Roth IRA match cause depending how much you’re investing each month you’re getting your moneys worth on the match alone not including the stock advice from morning star and so on. But if every $1 you invest you get an additional 1% match plus the 5% apy that’s immense! And I’m saying this as a big fan of Robinhood as a trading platform, granted like you said they made trading almost like a game that’s probably made a lot of people lose money. But trading should be something to do small at first, learn about it and scale up slowly. People who for example lost tons of money buying GameStop stock thinking it wouldn’t crash and lost a ton buying stuff on margin that’s their fault lol
@@Godfather9814 I just found out if you sign up with gold on the app it’s $6.99. If you sign up on the website it’s $5. I have no idea why it’s like this but I have been paying $6.99 🫣
It’s not fixed but you are also not “locked in” if you wanna keep the boost you gotta leave it in for 2 yrs if u don’t care about it you can move it in and out as you wish.
If its like any "High Yield Account" its most likely invested in short term assets like CDs, T-bonds, and AAA corp bonds. The key thing is "short term" because these asset are not only low risk but by buying >1 years they also suffer less from market risk so if the FED raise or lower rates its insensitive, to that ensuring the bank can more easily meet its obligation to you, the downside is since they don't lock in future yield, its subject to change year over year. We are currently still in an environment with a inverted yield curve, which is just fancy for short term fixed assets are giving higher returns then long term fixed asset. Most brokerage offer "sweep" accounts where your money is saved in this way when uninvested. RH is a bit on the higher end but everything is tied to gold, which is effectively inducing you into paying 50 bucks, they are making money off of payment for order flow, etc. They are basically using the Costco model. $1000 in "free" margin, competitive HY account, 3% reward on their credit card (its kinda meh but its there), 3% IRA match, maybe this 1% deposit boost thing. My hunch is if you take advantage of everything they lose money, they are loss leading aggressively like always but that should also put up some red flags that they are attempting dark patterns. But also to be fair, they been terrible at that it which is why RH stock hasn't recover since IPO and most analyst put them as 2x overvalued.
This is NOT the same as an employer 401k match. Let’s say you make $100,000 a year. Let’s also say your employer matches up to 4% of your 401k contribution. This 4% is not 4 cents for every dollar… it’s a dollar for dollar match up to 4% (in this case, $4,000 a year) of your salary. This means $8,000 a year goes into your retirement account. Given the same scenario, but investing in an IRA with Robinhood, the $4,000 you invest is only $4,120. Robinhood gives you $120 for investing $4,000. AND this doesn’t take into account that Robinhood Gold is required for this every year. Meaning that $120 becomes $70 after subscription fees.
@@Boxofdonuts I’m not complaining. I’m pointing out that Robinhood isn’t matching your investment dollar for dollar. It’s misleading to compare this to a traditional employer-offered 401k. Invest $4,000 in an employer 401k match… You have $8,000. Invest $4,000 in Robinhood and you have $4,070, after you pay for the Gold membership. Completely different results. Either the creator of this video doesn’t understand this difference or they are intentionally misleading.
Its 1% boost for every deposit not for the money you have in every month your doing the math wrong lol its 1% per every deposit... so everytime you deposit you get an extra 1% there for it better to several deposits rather then the big 6k lump you do all at once lol
Maybe I missed the detail, but what is a “deposit”? An ACH or other transfer that hits the Robinhood account for any amount of time? Or it must remain there?
If Robinhood wants to continue their progress in becoming a world class brokerage, they must offer outbound wire transfers.
Love the spreadsheet, was it accounting for the cost of gold per year?
I don’t believe so
Subtract $50
This calls for a Spreadsheet! Heck yes!
1% boost starts May 1st
Is it prorated if you take out the money in less than 2 years?
Yep
It has to vest
So what if someone already has 10k in robinhood with gold. Will they get the boost or is it only new deposits? If so I guess you could take it out and wait for the boost to come, but then you lose the 5% APY
I think the 5% apy is paid out per month
I live in Canada. What is Robinhood offering to Canadian investers?
Interesting. A lot hinges on that transfer v deposit language. I think I'd probably pay at least 1% in taxes on my longer term holdings if I sold and bought, but the basis would get stepped up. But if I could transfer it, then it would be a no brainer like the Roth IRA match.
I'm not sure why Robinhood would care whether it's transferred or a new deposit except that people worried about the transfer v deposit distinction might be more likely to be buy and hold investers who don't make Robinhood much in terms of payment for order flow.
I think that’s a fair assessment and inference!
Na, I stick to where I am
The deposit boost is pretty big
It's all great but WHEN is this happening !!
I don’t remember seeing any official release dates but heard a rumor from a subscriber that its May 1 2024
Does the 3% ira match count for roth accounts??
Yup!
Brother another great video. Do you think you could make a video of the “5.25/5%” apy. Just a clarity video from you explaining if you just put money into Robinhood and let it sit there you get the 5%? Or what are the rules exactly for that? Is it like a high yield savings account? I’m about to get gold because of your videos but just a little confused on that part of it.
I use my brokerage as my HYSA for 5.25%. You just need to be disciplined to keep x% of your brokerage money sitting and not FOMO into stocks.
It’s great.
I’ve also rolled my and my spouses IRAs over for the 3%.
On the waitlist for the new gold card as well for a new daily. Keep my Amex Gold and Plat for food and travel. BILT card for rent. USAA 4% on gas Amex for fuel, and Future card for my spouses EV charging and our utilities bill 5% cash back.
Just have to be a Gold member and not break the pattern day trader rule and enable sweeps program and you'll start earning the 5% accruing daily and paid monthly
They are also making a card with 3% cashback
Yup! New Robinhood Gold Credit Card Features and Fine Print
ruclips.net/video/5voAfGafvYs/видео.html
Where is Robinhood getting all this extra cash to throw at customers? Their investors must be forking it over. Meanwhile, M1 seems to be cutting costs. 🤔
They’re playing the long game. Giving bonuses spread out over a certain amount of time. Giving an IRA match as long as you hold it there for 5 years… essentially a lot of people are going to be switching to RH and staying for a long while… what will they do with all of this new money? Invest it, giving the user back a small percentage through incentives.
Robinhood makes money from people investing. The money that sits in peoples accounts they make interest on. Also, their main money maker is payment for order flow, which means they make a small percentage of profit from every trade that everyone does. Say you buy VOO, they send that request to Citadel, who actually processes the trade, and pays Robinhood for using them. It’s probably less than a penny for the typical user, but it makes them hundreds of millions a year.
Robinhood is going under. Money grabbing at this point
@@minimal2224 I highly doubt that
@@minimal2224 it’s actually the exact opposite. Robinhood is doing very well, in fact, they just purchased East a large credit card company to expand even more. Don’t spread misinformation.
If it’s a 1% match on instant deposits that’s an even bigger reward! It’s worth the $6 a month for just the 3% Roth IRA match cause depending how much you’re investing each month you’re getting your moneys worth on the match alone not including the stock advice from morning star and so on. But if every $1 you invest you get an additional 1% match plus the 5% apy that’s immense! And I’m saying this as a big fan of Robinhood as a trading platform, granted like you said they made trading almost like a game that’s probably made a lot of people lose money. But trading should be something to do small at first, learn about it and scale up slowly. People who for example lost tons of money buying GameStop stock thinking it wouldn’t crash and lost a ton buying stuff on margin that’s their fault lol
I'm confused as to why multiple people are saying that robinhood gold is 6 dollars a month. I only pay 5. Do you pay 6?
@@thomasloyd843 it has my monthly amount at 6.99 🤷🏻♂️ when did you get gold?
@@Godfather9814 I have had it since 2021.
@@Godfather9814 I just found out if you sign up with gold on the app it’s $6.99. If you sign up on the website it’s $5. I have no idea why it’s like this but I have been paying $6.99 🫣
I signed up for gold 3 weeks ago and I'm paying $5 a month
My PayPal savings gives me 4.3%
That’s not bad!
is the 5% fixed like a CD ? will it go to 1% and now you're locked in for 2 years?
It’s not, just like other savings accounts. So the rate will change sometime
It’s not fixed but you are also not “locked in” if you wanna keep the boost you gotta leave it in for 2 yrs if u don’t care about it you can move it in and out as you wish.
If its like any "High Yield Account" its most likely invested in short term assets like CDs, T-bonds, and AAA corp bonds. The key thing is "short term" because these asset are not only low risk but by buying >1 years they also suffer less from market risk so if the FED raise or lower rates its insensitive, to that ensuring the bank can more easily meet its obligation to you, the downside is since they don't lock in future yield, its subject to change year over year.
We are currently still in an environment with a inverted yield curve, which is just fancy for short term fixed assets are giving higher returns then long term fixed asset. Most brokerage offer "sweep" accounts where your money is saved in this way when uninvested. RH is a bit on the higher end but everything is tied to gold, which is effectively inducing you into paying 50 bucks, they are making money off of payment for order flow, etc. They are basically using the Costco model.
$1000 in "free" margin, competitive HY account, 3% reward on their credit card (its kinda meh but its there), 3% IRA match, maybe this 1% deposit boost thing. My hunch is if you take advantage of everything they lose money, they are loss leading aggressively like always but that should also put up some red flags that they are attempting dark patterns. But also to be fair, they been terrible at that it which is why RH stock hasn't recover since IPO and most analyst put them as 2x overvalued.
This is NOT the same as an employer 401k match. Let’s say you make $100,000 a year. Let’s also say your employer matches up to 4% of your 401k contribution. This 4% is not 4 cents for every dollar… it’s a dollar for dollar match up to 4% (in this case, $4,000 a year) of your salary. This means $8,000 a year goes into your retirement account.
Given the same scenario, but investing in an IRA with Robinhood, the $4,000 you invest is only $4,120. Robinhood gives you $120 for investing $4,000. AND this doesn’t take into account that Robinhood Gold is required for this every year. Meaning that $120 becomes $70 after subscription fees.
No one said it was
It’s “like” that match for someone who doesn’t have access to a 401k
Why complain, you can get both a 401k match and free money from Robinhood
@@Boxofdonuts I’m not complaining. I’m pointing out that Robinhood isn’t matching your investment dollar for dollar. It’s misleading to compare this to a traditional employer-offered 401k. Invest $4,000 in an employer 401k match… You have $8,000. Invest $4,000 in Robinhood and you have $4,070, after you pay for the Gold membership. Completely different results. Either the creator of this video doesn’t understand this difference or they are intentionally misleading.
It’s obviously not the same thing and the creator of the video never claimed it was.
Its 1% boost for every deposit not for the money you have in every month your doing the math wrong lol its 1% per every deposit... so everytime you deposit you get an extra 1% there for it better to several deposits rather then the big 6k lump you do all at once lol
The boost is broken into 24 pieces
I’ll believe when I actually have a credit card in hand…otherwise I don’t care about these weirdo promotional videos