Robinhood, the low-to-no fee stock and crypto trading smartphone application, announced today it is expanding services to include checking and savings for customers. They’re promising users will earn 3% on their money, no fees, and access to more than 75,000 free ATMs.
Robinhood Announces Checking and Savings
Co-founders and co-CEOs of Robinhood took to the company blog today, announcing roll out of a free checking and savings account for users. They claim to be “furthering our mission to democratize America’s financial system by introducing Robinhood Checking & Savings. Currently, traditional checking and savings accounts cost more for people who make less, are riddled with unfair and hidden fees, and earn you minimal returns on your savings. We believe you should earn more on your money, and shouldn’t be charged fees to access it.”
The three year old company has come-on strong in recent months, ramping up services seemingly designed toward younger, more tech-savvy customers. Their initial business model was a loss-leader blueprint, offering relatively low trading fees in a mobile app for stocks. That soon evolved into offering cryptocurrency trades as well.
“Robinhood Checking & Savings earns you 3% interest,” they explained, “the highest rate currently offered in the market, features no fees, access to over 75,000 free ATMs, 24/7 customer support, and a personalized debit card.”
For sure, the market of the future will be smartphone heavy, or mobile device intensive, and so companies like Robinhood are positioning themselves for the longer term by onboarding younger users in the United States who might not have a lot of cash at the moment, but that won’t always be the case.
“The average annual interest rate you receive on a traditional savings account is 0.09% (FDIC),” the CEOs compared. “With Robinhood, you’ll earn 3% on your money in both Checking & Savings, and interest compounds and is paid out daily. That’s an extra $240 a year for the average American household with $8,000 in the bank (Federal Reserve).”
A major selling point for the app is its emphasis on virtually free pricing. “You shouldn’t be charged fees to access, save, and invest your own money. Robinhood Checking & Savings has no minimum balance, no monthly fees, no overdraft fees, and no foreign transaction fees. With Robinhood Checking & Savings, you can save hundreds of dollars in fees,” they claim.
Signups are beginning now with the hope of launching the program proper by early next year. “With Robinhood Checking & Savings you get a personalized debit card that can be used for free cash withdrawals at over 75,000 ATMs across the country. That’s more free ATMs than the five largest banks combined, with locations in major stores like Target, Walgreens, or 7-Eleven. You can also use the Robinhood app to find the closest free ATM, pay bills, deposit or mail checks, and chat with customer support 24/7,” they insisted.
No word yet if the service will be fully integrated with users’ crypto holdings.
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