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Robinhood Markets Inc HOOD is offering interest rates on uninvested cash at 18 times the national savings rate.
What Happened: Robinhood raised its “Robinhood Gold” interest rate to 4.15% APY, while the national average interest rate on savings accounts stands at 0.33%.
The retail brokerage said the new rate goes into effect Friday and will be available to new and existing Gold customers enrolled in cash sweep.
Robinhood’s cash sweep program automatically moves uninvested brokerage account cash into deposit accounts at a network of six program banks. The cash deposited in those banks are covered by FDIC insurance up to a maximum of $1.5 million.
With the interest rate compound daily, customers will be able to earn even more income on their uninvested cash, with no cap. Robinhood said the interest is paid out monthly.
Robinhood Gold subscribers also get access to several other benefits, such as bigger instant deposits and margin investing at 7.25%.
With the latest interest rate hike doled out by the Federal Reserve, Robinhood said it is “doing what’s best for customers by passing those savings along.”
Photo via Shutterstock.
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Image and article originally from www.benzinga.com. Read the original article here.