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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

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12118946 No.12118946 [Reply] [Original]

>Robinhood now offers Checking & Savings accounts with 3% interest

alright /biz/.... what the fuck is the catch?

>> No.12118974

>>12118946
It's not going to be insured by FDIC but SIPC, oh wait, just kidding, not them either.
https://www.cnbc.com/amp/2018/12/14/bank-analyst-rips-robinhoods-new-savings-accounts-says-regulators-may-get-involved.html

>> No.12118985

If RH dies you lose it all. Also they're weak to bank runs

>> No.12119015

>>12118946
They urgently need cash flow. Suddenly high interest accounts arn't really a good sign. It means the bank needs money fast.

>> No.12119022

>>12119015
>3%
>high

>> No.12119034
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12119034

>>12118946
also i've never understood why banks would offer the exact same rate for both accounts

why the fuck would anyone bother putting money in their savings account?

>> No.12119156

>>12118946

%3 a year not a month.

I'd rather be with Syncrony bank & PNC bank for their high yeild savings.

>> No.12119186

>>12118946
Robinhood makes their money off of float. More customer money in their coffers means more profit.

>> No.12119291

sounds like a ponzi... they are paying out your interest from the deposits of people that come after you.

not sustainable

>> No.12119317

>>12119291
this, get out while you can

>> No.12119341
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12119341

Say you have $100,000. 3% yearly is $3,000 in income pre tax, paid monthly. That's $250/mo.

Not bad if you live in Vietnam and don't care about inflation.

But, the rate can be changed at any time, it can be capped at anytime (first 10k in deposits only), and RH has notoriously horrible support which seriously jeopardizes your access to ever pulling out your money.

>> No.12119371

>>12119291
Lol, the margins on brick and mortar banking is insane. Even if RH wasn’t a super low overhead financial entity, they’d still be able to offer %3 money market account. The %3 isn’t even that remarkable, it’s the no fees or minimums that make it attractive.

>> No.12119385

>just wanted the aesthetic card and a savings account with 2% or so interest I could accumulate in so I have some dedicated investing money to when the market crashes

>> No.12119416

>>12119341
This image always makes me lol

>> No.12119507

>>12119416
the art quality is insane but i always wanted to know why there's nunchuks on the door knob

>> No.12119632
File: 315 KB, 1324x1332, Screen Shot 2018-12-14 at 3.54.09 PM.png [View same] [iqdb] [saucenao] [google]
12119632

>>12118946

>> No.12119679

>>12119507
I know it. Jesus's face tho "oh man, that's some of that good black tar shit, shhhhaaaaghhh"

>> No.12119715

>>12119416
It carries a strong message though