Robinhood Gets Into Banking with Checking and Savings Product
The free investment app Robinhood made a splash earlier this year when it announced it would allow users (in certain states) to trade cryptocurrencies on the platform. Now the FinTech is making big news again, but this time with fiat currency. Today, the company announced Robinhood Checking & Savings and opened the waiting list for users to gain access to the new product.
Headlining Robinhood’s new checking and savings account is a 3% interest rate, which the company notes is the highest currently on the market. Additionally customers will enjoy no fees — including monthly, overdraft, or foreign transaction fees — as well as free access to more than 75,000 ATMs. Users also receive a customized debit card, currently available in four styles (green, white, black, and an American flag style). These cards will begin shipping next year.
In a press release announcing the product, Robinhood shared a peek at how their $0 fee schedule compares to the likes of Wells Fargo, Chase, Fidelity, and Bank of America:
Along with today’s announcement of Robinhood Checking & Savings came a redesign for the app. Now users will find their crypto and stock portfolios as well as watchlists under the Investing tab while Checking & Savings tab has popped up as well. Currently the latter tab will invite users to join the waitlist and display their position on the list afterward. The app is also offering priority access to those who invite friends and family to join.
Robinhood Checking & Savings is the latest in a string of FinTech’s who have entered the realm of traditional banking services. Perhaps the aptest comparison is the micro-investing app Acorns, which introduced its own checking account offering dubbed Acorns Spend earlier this year. However that service comes bundled with other features for a cost of $3 a month. Meanwhile Square maintains its own debit card for use with peer to peer app Cash and PayPal has also been experimenting with the role of banker in recent months.
If observers thought Robinhood was being ambitious when it first launched fee-free trading and, later, got into the world of cryptocurrencies, one can only imagine what they’ll have to say about Robinhood Checking & Savings. As the company eyes an initial public offering, it’s now clearer than ever that they see themselves as a major player in Millennial (and likely Gen Z) finance. In doing so, they’re also positioning themselves as one of the largest and most interesting FinTechs in the space.