Robinhood Markets Inc. HOOD recently introduced a brokerage cash sweeps program for Robinhood Gold members.
Robinhood Gold members will have access to 3.75% interest on brokerage cash sweeps, which is more than 23 times in interest than the national average for a traditional savings account. There’s no cap, and you can withdraw anytime.
The program works much like other cash sweep accounts. Gold members will have their uninvested brokerage account cash automatically swept into deposit accounts at a network of six program banks. The partnered banks are Goldman Sachs Bank USA, HSBC Bank USA, Wells Fargo Bank, Citibank, Bank of Baroda and U.S. Bank. The interest is compounded daily and then paid out monthly by the program banks.
In addition to access to the cash sweep, Robinhood Gold boasts a suite of powerful tools, data and investment features. Gold members have access to professional research from Morningstar Inc. MORN, Level II market data from the Nasdaq Stock Exchange, access to margin investing at 6.5% and bigger instant deposits. Without the Gold membership margin investing is at 10.5%, drastically increasing members’ buying power.
You can subscribe to Robinhood Gold for only $5 per month to unlock all of the above perks and investment opportunities.
How To Sign Up For Robinhood Gold
Upgrading to Robinhood Gold is a simple and seamless process. If you don’t already have a Robinhood account, you can sign up at robinhood.com/signup.
If you’re an existing Robinhood Member, first navigate to your account icon to upgrade to Gold.
From your account page, you will want to navigate to the settings tab. In settings, you can change your notifications, upgrade your account and see your security settings.
Once you are in your settings tab, under the Account heading you will see a Robinhood Gold option. Click on that.
From there, you will be prompted to learn more about Robinhood Gold. Read and continue through the prompts.
You will then have an option to opt into Margin. The margin investing feature allows you to borrow money from Robinhood to purchase securities. This gives you additional buying power based on the value of certain securities in your brokerage account. Let’s say you don’t have enough money in your account to invest in an opportunity you see in the market that is time sensitive; on margin, you’d be able to invest right away without needing to make a deposit from your bank. Robinhood’s margin option has a flat 5% interest.
Once you decide whether you want to opt into Margin, which can be changed at any time, you’ll be prompted to read the Robinhood Gold agreement and sign.
Finally, to ensure that you’ll start earning interest on your cash, click on the gold card that appears on the “Welcome to Robinhood Gold” confirmation screen. This will take you to sign up for the cash sweep program, which will allow you to start earning interest on your uninvested cash. Keep in mind that you will be receiving our top interest rate of 3.75% on your cash thanks to being a Gold member.
After that, look for the Robinhood Gold badge to get the most out of your new membership!
You can try Gold free for the first 30 days. After that, your brokerage account will be charged the $5 monthly fee every 30 days at the beginning of each billing cycle.
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.
Image and article originally from www.benzinga.com. Read the original article here.