Cash Management Sunset FAQ | Robinhood

Cash Management Sunset FAQ

Don't I already have a spending account?

Cash Management is spending functionality offered through your brokerage account. If you open a new spending account, we’ll move your Cash Management spending features from your brokerage account to a new, separate spending account and issue you a new debit card.

Will my account number change?

When you open a spending account, your ACH account number that was associated with the Cash Management feature will change. Your routing number will also change if it was previously provided by Sutton Bank. We’ll send a notice of change (NOC) to your transfer senders and recipients letting them know that your account information has changed and try to switch over any non-originated ACH transfers to your new account (except direct deposits).

For direct deposits and any other transfers that we aren’t able to switch over to your spending account, you’ll need to update your ACH account and routing numbers with your new spending account information within 90 days of opening your account. Additionally, after opening your spending account, make sure you transfer enough money from your brokerage account to cover any upcoming charges. If your spending account doesn’t have enough money to cover a charge, the charge will be declined.

Will I get a new debit card?

We’ll issue you a new debit card when you open your spending account—you can start using your new virtual card information online and with your mobile wallet immediately. If you requested a physical debit card, it should arrive within 2 weeks. Your old debit card will work for 60 days after your spending account is open, as long as there are no pending transactions or disputes on the card. You’ll need to update any places where you were storing your old card information.

What’s happening to Cash Management?

The Deposit Sweep Program will still be offered on the brokerage account. Going forward, Robinhood will continue to build features only for the new spending account. To have access similar to Cash Management’s spending features, you’ll need to open a spending account.

Are there any related fees?

There are no monthly fees, maintenance fees, inactivity fees, foreign transaction fees, transfer fees, card replacement fees, or account minimums for the new spending account. You also don’t have to worry about overdraft fees—if you don’t have enough cash available, we’ll just decline the transaction. Keep in mind that other fees, such as ATM fees may apply. You can check out our Prepaid Card Agreement and Spending Account Agreement to learn more.

What features come with the new spending account?

When you open a new spending account, you'll get a new Robinhood Cash Card, which offers more ways to earn rewards. With Round-ups, you can also earn cash back on every debit card purchase with selected merchants.

You can set up a recurring paycheck transfer with your spending account to automatically invest a portion of your paycheck each week—or, you can send a part of every paycheck to brokerage cash, where it will earn interest through the cash sweep program. Additionally, early direct deposit allows you to get paid up to 2 days early. Limitations apply.*

How do Round-ups work?

With a spending account, you can round up any debit card transactions to the next dollar and set aside your spare change to invest in your choice of stocks, exchange-traded funds (ETFs), or crypto. For more details, check out Round-ups.

How can I split my paycheck?

When you set up direct deposit to your new spending account, you can choose to automatically invest a percentage or dollar amount of every paycheck in your brokerage account to invest in stocks or ETFs, or transfer to your Robinhood Crypto account.

How does early direct deposit work?

When you set up direct deposit to your new spending account, you may be able to receive your paycheck up to 2 days early. Eligibility depends on your employer or payroll company and isn’t guaranteed.

Will transfers between Robinhood accounts be instant?

Transfers of settled funds between your brokerage account and spending account will be instant. Bank transfers will still typically take up to 5 business days.

Am I losing interest on my brokerage cash?

While you’ll still earn interest on the swept cash in your brokerage account, you won’t earn interest on any cash in your spending account.

Will I still be eligible for FDIC insurance?

The money in your spending account may be eligible for up to $250,000 of FDIC pass-through insurance (see the Robinhood Cash Card Agreement.) and the Robinhood Spending Account Agreement). Swept cash in your Robinhood Financial brokerage account will continue to be eligible for up to $2.25 million of FDIC insurance with our program banks. Robinhood Financial is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available at www.sipc.org.

Disclosures

All investments involve risk and loss of principal is possible.

Your brokerage account is offered through Robinhood Financial LLC, ("RHF") a registered broker dealer (member SIPC) and clearing services through Robinhood Securities, LLC, ("RHS") a registered broker dealer (member SIPC). Your crypto account is offered through Robinhood Crypto, LLC ("RHC") (NMLS ID: 1702840). Your spending account is offered through Robinhood Money, LLC ("RHY") (NMLS ID: 1990968), a licensed money transmitter. Review our list of our licenses for more information. The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard®. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. RHF, RHY, RHC and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC and RHS are not banks. Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. Crypto held in RHC accounts are not covered by FDIC or SIPC protections. RHY products are not subject to SIPC coverage but funds held in the Robinhood Money spending account and Robinhood Money Cash Card account may be eligible for FDIC pass-through insurance (see the Robinhood Cash Card Agreement.) and the Robinhood Spending Account Agreement).

Round-ups are sent from your spending account with, and are a service of, Robinhood Money. You must spend at least $1 on your Robinhood Cash Card in order to qualify for the program. You authorize the transfer of Round-ups from your spending account with Robinhood Money to your affiliate accounts. You must separately place a recurring trade order with Robinhood Financial, LLC to invest in securities, or with Robinhood Crypto, LLC to invest in crypto through this program. For Round-ups to be available to you, you need to have a brokerage account with Robinhood Financial, LLC, or a crypto account with Robinhood Crypto LLC. Crypto accounts are not available in all U.S. jurisdictions. All brokerage products and services are provided by Robinhood Financial. Robinhood Crypto, LLC provides crypto trading pursuant to applicable state money transmission and virtual currency licenses. The Robinhood Stock Round-ups and Robinhood Crypto Round-ups Customer Agreements have more details.

With paycheck recurring investments, you authorize Robinhood Money to transfer a portion of your paycheck from your spending account with Robinhood Money to your affiliate accounts.

*Early access to direct deposit funds depends on timing of the payer's submission of deposits and isn’t guaranteed. We generally make these funds available on the day the payment file is received which may be up to 2 days earlier than the scheduled payment date. Early access to direct deposit funds aren’t eligible for FDIC pass-through insurance if provided before the scheduled payment date.

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Crypto markets are highly volatile, and trading or holding crypto can lead to loss of your assets. Crypto is not legal tender, and is not backed by any government or covered by any government compensation scheme.

Cryptocurrency services are offered for eligible EU customers through an account with Robinhood Europe, UAB (company number 306377915), with its registered address at Mėsinių 5, LT-01133 Vilnius, Lithuania (“RHEC”). RHEC is registered according to the regulatory requirements of the Republic of Lithuania as a virtual currency exchange and virtual currency depository wallet operator. RHEC is supervised by the Lithuanian Financial Crime Investigation Service under the Ministry of the Interior of the Republic of Lithuania. RHEC is registered under the applicable Polish law as a virtual assets service provider (VASP) in the Register of Virtual Currency Activities maintained by the Director of the Tax Administration Chamber.

© 2024 Robinhood. All rights reserved.
Follow us on

Crypto markets are highly volatile, and trading or holding crypto can lead to loss of your assets. Crypto is not legal tender, and is not backed by any government or covered by any government compensation scheme.

Cryptocurrency services are offered for eligible EU customers through an account with Robinhood Europe, UAB (company number 306377915), with its registered address at Mėsinių 5, LT-01133 Vilnius, Lithuania (“RHEC”). RHEC is registered according to the regulatory requirements of the Republic of Lithuania as a virtual currency exchange and virtual currency depository wallet operator. RHEC is supervised by the Lithuanian Financial Crime Investigation Service under the Ministry of the Interior of the Republic of Lithuania. RHEC is registered under the applicable Polish law as a virtual assets service provider (VASP) in the Register of Virtual Currency Activities maintained by the Director of the Tax Administration Chamber.

© 2024 Robinhood. All rights reserved.