The Robinhood Cash Card might be a good choice if you want a prepaid debit card that links to your Robinhood accounts and helps you set aside money for investing, However, if you're more interested in earning a high interest rate, a high-yield checking account will be a better fit.
What is the Robinhood Cash Card?
The Robinhood Cash Card is a prepaid card that Robinhood offers. When you get a Robinhood Cash Card, Robinhood creates a Robinhood Spending Account for you and links it to the card. From there, it works like a checking account; you can put money in your spending account and make purchases using that money with the Robinhood Cash Card.
Robinhood Cash Card Key Features
Earn Rewards On Purchases
You can earn cash bank on purchases you make with your Robinhood Cash Card. These are called "Cash Card Offers," and they don't require you to do anything to activate them. If you see an offer that you want to use, just purchase things as normal with your Robinhood Cash Card, and whatever cash back you earn will be put back into your spending account, usually within two days.
No Monthly Fees or Overdraft Charges
Robinhood doesn't charge any monthly fees or require a minimum deposit. It also doesn't charge overdraft fees, but that's because it doesn't let you overdraft your account at all. If you try to make a purchase that will overdraft your account, the Robinhood Cash Card will just decline the transaction.
Some of the best banks for avoiding overdraft let you overdraft your account without incurring fees.
Round-up Investments into Robinhood Stocks or Crypto
Round-Ups are a service that Robinhood offers for Robinhood Cash Card users. With them, you can round up all the purchases you make with the Robinhood Cash Card to the nearest dollar, and invest that spare change in your choice of stock, ETF, or cryptocurrency.
no monthly service fee
None
$0
- Several automatic investment options
- No monthly fees
- No opening deposit
- 24/7 customer service
- Get paid two days early
- Offers cash back on purchases
- $2.50 for ATM withdrawals at both in-network and out-of-network machines
- Does not allow overdrafts
- Does not pay interest
- Charges fees for money transfers (up to 1.75%)
The Robinhood Cash Card is good if you already use Robinhood, but it doesn't offer notable perks otherwise.
- Linked to the Robinhood Spending Account
- FDIC-insured through Sutton Bank
- Members can access “Robinhood Cash Card Offers,” which are specific purchases that users can get cash back on
- Allpoint and MoneyPass ATMs are in-network; Allpoint has over 55,000 ATMs, MoneyPass has around 40,000 ATMs
- ATM withdrawal fees can be waived if you recieve $300 or more in direct deposits in your account in the last 34 days
Benefits of the Robinhood Cash Card
The Robinhood Cash Card might be a great choice for people who already use Robinhood for stocks or cryptocurrency, and who want to integrate spending with investing strategy. The card offers several perks for people who have cryptocurrency or brokerage accounts with Robinhood.
For example, if you direct deposit your paycheck into the Robinhood Spending Account, then you'll be able to set up an automated transfer of some of that money into the accounts you use to buy stocks and cryptocurrency. It also offers Round-Ups, which can apply to any purchase you make with the Robinhood Cash Card. For each purchase, the amount you spend will be rounded up to the nearest dollar amount, and the extra cents you pay will go to your accounts to use in purchasing stocks, ETFs, or crypto. If you're into stock trading and/or investing in cryptocurrency, these features can be a great way to ensure you have money to invest.
Robinhood also offers perks like early direct deposit and cash-back on purchases through Cash Card Offers. With these, you can get your paycheck up to two days early, and you can earn cash back on select purchases you make with the card.
Robinhood Cash Card Potential Drawbacks
Limited to Robinhood Account Holders
You can only use the Robinhood Cash Card if you already have a Robinhood account. If you don't have a Robinhood account, you'll have to make one in order to get a card.
If you aren't already interested in getting a debit card with investment rewards, and you're not interested in starting to invest with stocks or cryptocurrency, you might want to look elsewhere for a good cash-back debit card.
Comparison with Traditional Bank Rewards and Benefits
The Robinhood Cash Card and Robinhood Spending Account comes with some bank fees you might want to avoid: a $2.50 ATM fee for both in- and out-of-network ATMs and a variable fee up to 1.75% for bank transfers to external bank accounts.
You can get no-fee ATM access with Robinhood for in-network ATMs if you have at least a $300 deposit into the account in the last 34 days. This makes in-network ATMs, such as Allpoint and MoneyPass ATMs, free to use; however, this will not waive ATM fees that out-of-network ATMs charge. The best banks for avoiding ATM fees don't require you to hit certain requirements to avoid paying extra for ATM usage.
In addition, this account does not accrue interest and does not allow you to overdraft your account. Most checking accounts do not let you accrue interest, but there are some high-yield checking accounts if you want to earn interest on your funds. No overdrafting means no overdraft fees, which might be a positive for some; however, it also means that any purchase that costs more than what you have in your account will be automatically declined.
Is Robinhood Trustworthy?
We include ratings from the Better Business Bureau to show you how many complaints banks get and how quickly and completely they respond to them.
Robinhood has received a B+ rating from the BBB due to government action taken against the bank.
Robinhood partners with Sutton Bank to provide this service. Sutton Bank has an A+ rating from the BBB.
Robinhood also has two recent controversies.
In 2023, Robinhood entered into a consent order with the Commissioner of Financial Protection. The CFP claims that Robinhood harmed its customers by failing to create and maintain supervisory systems that would ensure compliance with the law, keep the app from experiencing outages at crucial times, and ensure that customers were qualified for the services Robinhood was offering them. The CFP also claimed that Robinhood did not provide ways for customers to contact them during outages, and that it did not report a high volume of customer complaints to the Financial Industry Regulatory Authority, among other claims. Robinhood does not admit or deny wrongdoing in entering into the agreement.
In 2021, the Financial Industry Regulatory Authority required Robinhood pay $1.25 million in a settlement. FINRA says that Robinhood made several false statements to customers regarding what features they could use, the risk they were undertaking, and how much money they had or owed, among others. Robinhood does not admit or deny wrongdoing by paying the $1.25 million.
Robinhood Cash Card Pros and Cons
Pros
- Several automatic investment options
- No monthly fees
- $0 opening deposit
- 24/7 customer service
- Get paid two days early
- Offers cash-back on purchases
- FDIC-insured
Cons
- Charges ATM fees
- Does not offer overdraft protection
- Does not pay interest
- Charges fees for money transfers
Using the Robinhood Cash Card
Managing and Tracking Expenses
Like any debit card, you'll want to keep an eye out on how much you're spending and where. You can use the Robinhood app to track what you're spending on investments on cryptocurrency, but on everything else, you might want to consider downloading an external budgeting app to keep track of your spending.
How to Maximize Rewards and Investments
The Robinhood Cash Card gives you options for cash-back and investing. In order to maximize the cash-back you get from using the card, you'll want to frequently check what cash-back offers are currently available, and try to use them whenever you can.
If you're interested in focusing on the Robinhood Cash Card's stock trading features, there are a couple ways you can go about doing that. If you set up direct deposit into your Robinhood Spending Account, you can have a portion of your direct deposit automatically go towards the stocks and cryptocurrency you're interested in. You can also maximize rewards through Round-Ups investments by making sure that feature is always on, so that you're putting a little bit of money towards stocks and cryptocurrency with every purchase.
Robinhood Cash Card User Experience and Accessibility
Because Robinhood is a financial app, not a traditional brick-and-mortar bank, it comes with many of the perks and drawbacks that online banks offer. Robinhood is easily accessible to anyone with a phone or computer, and can be accessed easily whether you're at home or travelling. However, because Robinhood is not a bank, it does not have any branches that you can go to and get in-person help at. Things like depositing cash can also be more complicated.
That being said, the Robinhood platform's financial tools and support for customers are available 24/7, so you're always able to get in contact with customer support online.
Robinhood Investing
Robinhood is more well-known for its investing services; in fact, we even put it on our list of best investment apps for beginners. While the Robinhood Cash Card is connected to a Robinhood spending account, and therefore separate from Robinhood's brokerage account, people who are interested in the Robinhood Cash Card are likely also interested in Robinhood's online brokerage features.
Robinhood Gold
Robinhood Gold is a paid upgrade to Robinhood's online brokerage account. For $5 per month, you can earn 4.00% APY on any uninvested funds in your account, along with other perks.
You also get access to the Robinhood Gold Card, a cash-back credit card that gives 3% cash-back on your purchases.
Is the Robinhood Cash Card Right for You?
The Robinhood Cash Card offers a number of interesting perks for people who already use the Robinhood app and want to get more into investing. Its Round-Ups feature and its direct deposit perks let you automatically invest in the stocks or cryptocurrency you're interested in, and being able to invest and manage your money all with one app makes investing more convenient.
However, people who aren't interested in investing probably won't be interested in this card, either. Since you have to have a Robinhood account to use the card, and since the card doesn't offer any interest and charges for ATM usage if you don't meet certain requirements, you'll probably want to go with another cash-back debit card that fits your particular needs better.
Robinhood Cash Card Alternatives
Robinhood Cash Card vs. Acorns Mighty Oak Debit Card
The Mighty Oak Debit Card by Acorns is a great option if you're interested in investing but also want to earn a high annual percent yield on your checking account funds.
Acorns lets you invest directly out of your account. It also offers a "Real-Time Round-Ups" feature that works similarly to Robinhood's "Round-Ups" feature, as well as a smart deposit feature that lets you invest a part of your paycheck like Robinhood does. In addition, you can earn 2.57% APY on Checking and 4.05% APY on an Emergency Fund with Acorn. It also lets you use its ATM network for free, unlike Robinhood.
Robinhood Cash Card might be a better choice if you're more interested in Robinhood's investment opportunities, or if you already use Robinhood for investing. In addition, the Mighty Oak Debit Card requires you to pay a monthly subscription fee (though you may be able to waive the fee). If you want a spending account you can invest with that doesn't charge monthly fees, the Robinhood Cash Card may be a better choice for you.
Robinhood Cash Card vs. Discover Cashback Debit Card
The Discover® Cashback Debit Account is a great choice if you're primarily interested in getting a great cash-back debit card. It lets you earn 1% cash-back on up to $3,000 worth of purchases each month (see website for details). You can only earn cash back on specific offers with the Robinhood Cash Card.
As with Robinhood, there are no monthly fees associated with Discover's card. Unlike Robinhood, it offers overdraft protection if you link another Discover account to this checking account. You can also use its extensive ATM network for free, though you will be charged a non-waivable fee if you go outside of its network.
Unlike the Robinhood Cash Card, the Discover® Cashback Debit Account does not offer any investment-related perks. If you're primarily interested in investing, Robinhood is the clear winner.
Why You Should Trust Us: How We Reviewed the Robinhood Cash Card
At Business Insider, we use our bank account methodology to rate all of our banking products. For checking accounts, we consider the following categories: minimum opening deposits, monthly service fees, overdraft fees/protection, ATM network/fees, customer support, mobile app, miscellaneous features, and company ethics and security. Based on these, we give each account a score from 0 to 5.
We assign star ratings can be anywhere from one to five stars. We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
Robinhood Cash Card FAQs
The Robinhood Cash Card lets you make purchases, earn rewards, and automatically invest spare change from rounded-up transactions into stocks or crypto using money in your Robinhood account.
Yes, the Robinhood Cash Card charges you $2.50 per ATM transaction if you don't meet certain requirements. It also charges you for money transfers to external debit cards and instant bank transfers.
Yes, you can use the Robinhood Cash Card to withdraw cash at ATMs. Keep in mind, though, that there are some fees associated with doing so.
You can earn rewards on purchases made with the Robinhood Cash Card. You can maximize benefits by participating in round-up investments. This will allow you to invest change into your Robinhood portfolio automatically.
The card is primarily tied to the Robinhood platform, so it primarily is beneficial for Robinhood account holders. Check out online or national banks if you're looking for a traditional banking rewards program.
Yes, the Robinhood Cash Card is FDIC-insured through Sutton Bank, so your money is save up to $250,000 per depositor.
