All about the Robinhood debit card | Is it right for you?
 
 
 
 
 
 

All about the Robinhood debit card

/ 06:53 AM May 07, 2021

The Robinhood debit card turns your online brokerage account into your offline wallet. It lets you spend the money you’ve earned from investments. Leave the funds untouched, and it makes interest every month!

We’ll discuss the basics of Robinhood, such as its features and uses. Then, we’ll go through its cash management and debit card feature. You’ll learn whether Robinhood’s new financial service is exemplary for you or not.

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Robinhood makes investing much easier for everyone. With a Robinhood cash management account, you could get their debit card too. This lets you enjoy your profits directly, just like another wallet!

What is Robinhood?

What is Robinhood?

Investing in stocks back then was a chore. It involved calling your broker to place an order on your behalf. Nowadays, you could do it on your PC.

Robinhood takes it further by letting people buy and sell stocks on their phones too. Start by creating a Robinhood brokerage account. Here are the requirements:

  • It would help if you were 18 years old or more.
  • Be a United States citizen, valid visa holder, or permanent resident
  • Have a valid Social Security Number
  • Live in a legal US residential address within the 50 states or Puerto Rico.

After your application, wait a few days. You’ll get an email confirming your application. Otherwise, it may ask for more information. Submit the requirements and wait 5-7 days.

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How Does Robinhood Work?

Then download the Android or iOS app. You could also access Robinhood Web on your web browser. You could use it on Chrome, Safari, Edge, and Firefox.

Once that’s done, you’re ready to purchase your first stocks! Choose from over 5,000 shares, including most US exchange-traded (ETFs) and equities.

Also, you could buy cryptocurrencies using Robinhood. Note the higher risks involved. Here are the coins available on the platform:

  • Bitcoin (BTC)
  • Dogecoin (DOGE)
  • Ethereum Classic (ETC)
  • Ethereum (ETH)
  • Bitcoin SV (BSV)
  • Bitcoin Cash (BCH)
  • Litecoin (LTC)

Eventually, you’ll get used to trading with Robinhood. You may get a Robinhood Gold upgrade to take your stock trading to the next level! Here are the features:

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  • More extensive instant deposits of $5,000-$50,000
  • Professional stock research reports from Morningstar
  • Level II market data
  • Margin access

Try it for the first 30 days. It costs $5 per month after. You could upgrade via smartphone or PC. Open the account settings and choose Robinhood Gold.

Robinhood Cash Management

Robinhood Cash Management

As you invest, you earn more for your account. With the cash management feature, your uninvested funds don’t just sit in your account!

Instead, it may earn a 0.3% annual percentage yield (APY). Once it reaches this interest rate, Robinhood’s partner banks will sweep your funds. Note that it may rise or fall at any time.

Rest assured, your money is FDIC-insured in these institutions. Here are the banks that work with Robinhood:

  • AMERANT Bank, N.A.
  • Bank of Baroda
  • Citibank, N.A.
  • Goldman Sachs Bank USA
  • HSBC Bank USA, N.A.
  • U.S. Bank N.A.
  • Wells Fargo Bank, N.A.

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Cash Management features

What’s more, you get these features from Cash Management. These include the Robinhood debit card and others including:

  • ACH account number and routing number
  • Access to Google Pay, Apple Pay, or Samsung Pay
  • Replacement of stolen or lost cards
  • The Robinhood debit card

Cash Management fees

You won’t have to deal with so many fees. Here are the costs you won’t find in Robinhood’s Cash Management:

  • Transfer fees – Freely place funds from your bank to your Robinhood account.
  • Card replacement fees – If you lose your Robinhood debit card, the company will replace it for free.
  • In-network ATM fees – Use the 75,000 ATMs in the Moneypass or Allpoint networks with no costs. If you use an ATM outside the network, its provider may charge fees.
  • Foreign transaction fees – No fees when buying stuff abroad. If you pay a foreign transaction in USD, you might have to pay a conversion fee.
  • Maintenance fees – Open, close, and maintain your account without monthly payments.
  • Inactive account fees – You won’t have to pay fees for not using the card for too long.

There are fees that Robinhood might not cover. You may check Robinhood’s Fee Schedule for more information.

Robinhood debit card

Robinhood debit card

Cash Management users have access to Robinhood’s checking account and savings account features. As we said, you may also get a Robinhood debit card.

Now you can use Robinhood for buying products or services. In partnership with Sutton Bank, you could bring your uninvested funds like one of your credit cards.

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It’s much better than most of your plastic swipers. You won’t have to deal with minimum balances or fees. Choose among four designs for your Robinhood debit card:

  • Green
  • White
  • Black
  • American Flag

Pros:

  • Great APY
  • Zero minimum opening deposit
  • Zero monthly service fees
  • It doesn’t charge for out-of-network ATM service (Its provider may charge fees, though)
  • No foreign transaction fees (Though you might have to pay a conversion fee)
  • Zero overdraft fees

Cons:

  • Robinhood doesn’t have any physical locations
  • You need a Robinhood account
  • It doesn’t cover fees charged by out-of-network ATM providers
  • You can’t make wire transfers
  • It doesn’t allow cash deposits
  • You can’t overdraw your account

Is the Robinhood debit card right for you?

Is the Robinhood debit card right for you?

If you have a Robinhood account, you might as well get a Robinhood debit card. It lets you maximize profits by earning interest from your uninvested funds.

It’s even better if you’re comfortable using an online bank account. The Robinhood debit card allows you to spend your uninvested funds directly. You could even use it abroad!

On the other hand, it’s not ideal if you keep your personal finance offline. The Robinhood debit card isn’t appealing if you don’t have an account either.

How to get a Robinhood debit card

  1. Open your Robinhood smartphone app.
  2. Tap the card icon below.
  3. Tap “Join the waitlist.” You’ll see your placement on the waitlist.
  4. Once you get your turn, Robinhood can send it to your address.

While waiting, you could use the card online. Access it via Google Pay, Samsung Pay, and Apple Pay. Also, you may opt for a virtual debit card only.

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Final thoughts

The Robinhood debit card provides users with more services. It allows them to spend their uninvested cash like a secondary wallet.

What’s more, it maximizes their profits by paying interest to their new funds. However, the 0.03% APY may change from time to time.

Even Robinhood joined the cryptocurrency world. Maybe you should too. Check out the best cryptos to buy this year. Invest in both stocks and bitcoin today!

Learn more about the Robinhood debit card

Is the Robinhood debit card worth it?

If you’re already a Robinhood user, using the debit card makes sense. It’s also a great choice if you like to travel and shop overseas.

How do I deposit money into Robinhood?

Here’s how to deposit funds into Robinhood:

On the Robinhood website, click Account > Banking. Select an account you’ll get cash from, then click Submit.

If you’re using the Robinhood app, tap Account > Menu > Transfers > Transfer to Robinhood. Choose an account and hit Submit.

What does the Robinhood debit card do?

It lets you spend your uninvested funds like a credit card. Also, it allows you to earn interest from that amount of money.

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