What You MUST KNOW About the Robinhood Gold Card
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- Опубликовано: 7 июл 2024
- Robinhood recently announced that they’ll be releasing their Robinhood Gold card, but the big question is: Is this credit card worth it?
The card offers 5% on all travel booked through the Robinhood travel portal and 3% on all other purchases, making it a pretty good credit card for most everyday expenses as well as a pretty nice catch-all credit card.
But as this card is only available to Robinhood Gold members, we should also consider the investment perks and benefits of this program, which will help influence our decision.
So in this video, I’m going to discuss the pros and cons of the Robinhood Gold card and Robinhood Gold membership program, and then Tony and I will give our takes on whether we plan on getting this card or not.
Anthony Venture's Channel: @AnthonyVenture
Full Livestream: ruclips.net/user/liveSygkExQHoZQ
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📚 Chapters:
00:00 Intro
00:39 Robinhood Gold Card
03:00 Robinhood Gold Program
06:41 How to Offset Monthly Fee
09:11 Will We Get This Card?
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Some of the products that appear on this website are from companies from which I will earn an affiliate commission or referral bonus. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
I am not a financial advisor, accountant, or lawyer and do not provide financial, tax, or legal advice. This video and any ideas presented in it are my opinions and are provided for entertainment purposes only. Please do your own research and consult your own financial, tax, or legal professional for specific advice.
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Wow this is an excellent video. Thank you for the deep dive I’m doing research for a new credit card and this was one of them. After watching this I’ll keep looking around.
You're welcome! Glad you found the analysis helpful. Best of luck in finding the right credit card for you!
Loved the conversation on this one guys! I’m always of the mindset that if they offer a promotion shorter than the length of time to keep that promotion (5 years in this case), it’s not worth tying up your money. They want to lock your money up without guaranteeing to service it for the reasons you joined them in the first place.
Thanks man! Glad you enjoyed the discussion! Yeah, I'm also definitely not in favor of tying up your money for 5 years, which doesn't seem like a long time in the grand scheme of things, but it certainly isn't great .. especially since a lot can change within Robinhood in those 5 years!
Great video with Anthony. Totally agreed with all your points - no one wants to lock up their money for 5 years. People keep saying the effective annual fee is $0 (minus subscription), but I don’t want to not have the flexibility to take my money out when I want to.
I agree. 5 years doesn't seem like a long time when it comes to saving for retirement but having that flexibility can be pretty important depending on your specific circumstances. Appreciate it!
Counterpoint, the 3% Ira match alone on my transfer paid for rh gold for a decade. Every year, it’s also >$200 in match. Gold is worth it for me by itself. I’m not retiring in 5 years and can purchase the etfs I like. There is no downside for me
@@xzygy that was the main point of the video. If you are older, this might be a good option for you because you might be risk averse and want to wrap up your retirement fund soon, etc.. I have been more aggressive at investing lately, especially last year. I have easily doubled the money I put in stocks (>$10,000 in profit) and I can easily access my money.
@xzygy That’s great! Sounds like it’s a good fit for you!
Awesome video Stan 🔥 great information given
Thanks! Glad you found it helpful!
The nice thing about the Robinhood 3% IRA transfer is if you have a Roth IRA and you transfer it over you get a 3% match deposited into your Roth IRA account which does not count towards your contribution limit and you do not pay it tax on it
Yup! That is a nice benefit, and certainly can be very valuable if you have an IRA with a lot of assets! It depends on how comfortable you are with Robinhood and investing with them long-term!
@@TheCreditFrogeven if you only have one year’s worth of hitting the limit, 3% to transfer it in still covers the cost of gold
Enjoyed this convo with you and Venture. Really great card to use for investing purposes and help for retirement. I have the fidelity version and love it that a few hundred dollars a year is added for investments.
The Fidelity 2% card is awesome for that purpose! I think that also gets 3% if you have a LOT of assets with the, so I guess there's that too haha!
@@TheCreditFrog Its a great catch-all card
@@TheCreditFrog Its a great card to some more money into retirement no matter how small. In my early 20s so have a long way to go to get to the 3% based on assets. Like that all my retirement is at fidelity, plus a card as well. Keeps it simple for checking.
Never did I once hear an actual negative, all I heard was that the deal was better than everything else, but you don't trust them. That's absolutely understandable, but they're also changing the game and time will tell if it ends up destroying them or if forces everyone else to follow suit
@@andrewmontesdeoca4429 Yup, we definitely has to see. I will say though .. when a brokerage holds your money, trust is everything!
When trying to predict what brokerage would be most likely to fail, be careful. In the early 2000's the company I used to work for was deciding where to move their 401k plan and chose Merrill Lynch over Schwab "because Merril is the bigger and more stable company". Well, Merrill would have gone under if not bailed out by Bank of America in the 2008 financial crisis, and our company was very nervous when this happened. Large assets under management does not necessarily equate with stability.
You definitely bring up a very good point! No bank is immune to failure - that's for sure! I think it comes down to trust, or, at the very least, perceived trust. Hopefully, something like that never happens to anyone, but the longevity of the big-3 (Vanguard, Fidelity, Schwab) are good data points in the right direction. RH has had it's moments recently so I think only time will tell to see what comes out of this story!
robinhood didnt restrict peoples money. they stopped people from being able to buy the GameStop stock because robinhood couldnt handle the capital transfers due to the volume at the time
That would be a form of restriction in my book!
@@TheCreditFrog Informative and interesting discussion, thanks for that. However, I must agree with @danielle that the way you repeatedly phrased "restrict access to your money" came across as much more than what it actually was. You still hads full access to your money, but for a short period people could not buy or sell Gamestop; that is a significant distinction that I feel was lost in the way it was described in the video.
"Restrict access to your money" comes across as a much bigger situation than "Gamestop trading was temporarily suspended".
@@Phoenix12212012 Yeah I can see that, and thanks for making that correction. I was specifically referring to the trading suspension with GME, but certainly the phrase “restrict access to your money” could be taken out of context.
2:30 it cannot be secondary if you have no insurance.
Thanks for pointing that out! I meant to say primary if you don't have insurance and secondary if you have insurance. My bad.
Can I decline my gold status in Robinhood, and still keep the credit card along with it's benefits or do I need to maintain the gold status to keep the card active?
I think you need to keep the Gold status to keep it active, but I'd have to look at the terms and conditions. They may close the card if you don't have Gold active. Morgan Stanley does this with their version of the Amex Platinum / BCP cards if you close your investment accounts with them.
As somebody who doesn't do day trading and just plays the index fund game, this looks good to me. If I'm putting my money into Vanguard indexes, what can Robinhood really do to me at the worst? Prevent me from selling that index for a month? Cool. I have time to spend, and time in the market beats timing the market.
Yeah, I think as long as you know what you're getting yourself into (investing at RH) and you feel comfortable with them, they have some pretty nice perks for their customers. It's all about comfort level tbh. I'm also in the index fund game too, and time in the market is definitely better than timing the market.
One thing you need to know is that you cannot invest in mutual funds or bonds with Robinhood - only ETFs and stocks.
I understand the mistrust of RH over GME, but it's really scale that worries me more than potential access. Day traders of meme stocks were way more sensitive than IRA customers are.
That's true. There's definitely a difference between those two types of users!
You missed the 1000 usd in free margin - put in sgov that alone is more than 50 usd currently
Yeah, that a nice benefit too! Hope they keep that one around.
Thanks for the warning Admiral Ackbar 🙂.
Hah! He was one of my favorites! 🦑
What is the Santander bank story? Do you have a link to it?
It's in the full livestream, around 44 min in! Here's the link: ruclips.net/user/liveSygkExQHoZQ
3% sounds great, but needing to pay $60 of RH gold or tieing $1200 to offset the cost, isn't worth it for me. Especially when there's cards like citi double cash that gives 2% essentially. I was going to do if for the 3% match but then I wondered how sustainable is it for them to offer that for many years. And it it only last a year or 2, it wouldn't be worth it to me to have that ira there for 5 years. I'll stick with My fidelity and Schwab for my investing accounts.
For sure! There are plenty of other 2% cash back no annual fee credit cards to choose from, and 3% sounds good for now, but we'd have to see how long that benefit lasts. And yeah, keeping the money at RH for the match for 5 years, may be worth it for some people, but I'm like you - rather stick with the big guys like Fidelity, Vanguard, and Schwab!
X1 card was the superior option GLAD I have this card, if it ever needs to be converted to the Robinhood Gold card with AF I will close the account.
Nice Shawn! Happy to hear that you like the X1 card. We'll have to see what happens with it though since RH doesn't seem to want to do anything with it .. at least for now!
Interesting to see more cards coming out from Fintech companies like this. Personally I won't be getting this card either.
For sure Chase! Keeping an eye out on how this card develops will be interesting. Happy that we're on the same page!
I applied for the card about a month ago. I haven't head back.
I think it's a waitlist right now.
Where is your video on the "Santander Bank Story"?
It's in the full livestream, around 44 min in! Here's the link: ruclips.net/user/liveSygkExQHoZQ
I transferred my Vanguard account of $350k, I'm happy with getting a $10k bonus match.
It's a great bonus! Just make sure to keep the money in there for as long as you need to get that $10k bonus match!
I tried to transfer an IRA but it was invalid as my current IRA is a mutual fund. This disqualified my transfer.
Probably a blessing in disguise!
One correction is that the monthly fee is $5 per month, but if you change your membership fee to annual instead of monthly, then the fee becomes $50 per year, and not $60 per year as you state in your video. I subscribed to the annual fee and they gave me 1 month free and my annual fee is $50 due at the end of April. Also, you omitted a nice feature to the Gold membership which starts in May and that is the 1% deposit match. If you just keep $1,000 in your account you make up the $50 annual fee and you get everything else for free. 5% is pretty good for liquid money, and most financial institutions don't even pay you that much for a CD. Until they drastically reduce the interest rate, I am not sure I agree with your statement that you need to "do so much" with Robinhood to make the card worth it.
Yes, thank you for pointing that out! I definitely should have included the discount if you pay yearly as well as the first month free. I think Tony covered that 1% deposit match towards the end of the video, but I certainly should have included it earlier. While I think 5% is a great APY, I'm not sure if it will exist like that for the rest of this year (and early next year). Interest rates are projected to be lowered, and when that happens, expect subsequent decreases to APYs for savings across the board.
I'm not saying you need to do "so much" necessarily, my point is more that you have to keep your money within Robinhood for at least 5 years for the 3% IRA match, and then you also get benefits from cash in your account as you said, as well as the 3% on the RH Gold card. All of this is great news for those who want to put their money with RH!! But if you're wary about them like I am, I'd rather see what happens in the next 12-18 months to see if there is any longevity to these benefits as I think moving all your assets and financial plan to Robinhood may not be the best move at this point.
@@TheCreditFrog Agreed on the expectations that rates are going lower medium to long term and that it is probably prudent to take a wait and see approach in case they reduce some benefits. Down the line, it may be end up being a pretty good cash catch all card if they "stabilize" the benefits at a reasonable level.
@@gsctrading7215 For sure! We will have to watch this card (and RH) closely to see what happens!
What's the Satander Bank story?
It's in the full livestream, around 44 min in! Here's the link: ruclips.net/user/liveSygkExQHoZQ
I’m still on the waiting list. I’m starting to think this card is fake, but just holding on because of the IRA that I rolled over. Still good deal but is the credit card actually real? I been gold now for 3 months 😂
That's what I keep hearing about! Only a select few have actually received the cards, and others are still on a waiting list. I wonder how long this will go on for? I hope you get your card soon as you're paying for RH Gold!
@TheCreditFrog yeah I did 100k Ira rollover so got the 3% match thanks
I'm passing on this + Robinhood myself. Thanks for the info + video!
Nice Jimmy James! You're so welcome!
Good info. I'll pass on this one. I think a lot of people got blinded on the possibility of getting a solid god card but really didnt take a deep dive into it like you did in the video. Anthony Venture was playing the silent partner hahahaha
Thanks so much Sledge! Yeah, the solid Gold card would be a nice collector's item, but it's super important to DO YOUR RESEARCH!! Hah! Look at who I'm talking to 🤣
@@TheCreditFrog hahahaha
Welcome to the matrix, the multiverse is open.
Thanks...I think?
Oh lord Stan, don’t go down the rabbit hole with him. He took me to another dimension once like a few months ago.
He opened my eyes, but my life was never the same since.
Guess I better watch out! 😳
@@AnthonyVenturehey I’m on your side with team travel, boys. Would love to meet the two if you 😊
I am the all seeing eye 👁️ 🫶🏻
@@L_____E_______ITOh no you’re doing it again, drawing me in with your gaze!!
Spending $2000 a year on 3% gives you $60....
Yup!
You don’t have to do any of that stuff with RH. Would you pay $50 per year for a 3% cash back card? If you spend more than $5000 per year it beat 2% cash back no annual fee cards.
Yup! Those are things to do to help offset the $50 annual fee. If you only want to deal with the credit card, then that's also an option - but if you want to get even more value with RH, those additional options are available.
This is a scary video. You guys should have mentioned SIPC insurance that covers your investment if RH goes out of business.
Yes, if RH shuts down (unlikely, but possible), that SIPC insurance is going to cvome in handy!
3th
Hah! Congrats Tony, you're 3rd! 🥉
@@TheCreditFrog 4nd
@@ilikemilkdoyou11 🏆
LMAO not a trap
Ok
The Game Stop deal was a brand killer. Robin Hood is dead to me.
Yeah, that definitely wasn't a good look!
So are Interactive Brokers, Charles Schwab, Webull and ETrade dead to you too because they did the same thing?
@@meadows5367 If they had insider knowledge and intentionally shut down trades. They’re out.
It actually helped some people from making poor decisions trying to buy and sell a hype stock .alot of people lost a lot of money because they were amateurs and was just following the crowd trying to get rich quick
@@coryjohnson9081 I believe in free markets. Shutting down the market is not a free market economy.
First
Congrats Ahmad! You are first! 🥇