When you sign up for a Robinhood brokerage account, you’ll be enrolled in the Brokerage cash sweep program at onboarding by default.

Robinhood doesn’t pay interest. Instead, we move your eligible uninvested cash (unrestricted cash intended for investing that has not yet been invested or spent) into our network of Federal Deposit Insurance Corporation (FDIC) insured program banks that hold and invest your cash. These FDIC insured program banks then pay interest on those deposits, minus any fees paid to Robinhood Securities, LLC, which you receive as part of our brokerage cash sweep program. Robinhood is not an FDIC-insured bank. Deposit insurance covers the failure of an insured bank. Products other than the cash sweep program are not insured by the FDIC, are not deposits, and may lose value. Certain conditions must be satisfied for pass-through FDIC deposit insurance coverage to apply.

You’ll earn a 3.5% annual equivalent rate (AER) on your uninvested brokerage cash that is swept to the banks in our program.*

For example, if you start January 1 at 3.5% AER with $1,000 in uninvested brokerage cash that is swept to a program bank, you could earn over $42 by January of the following year. This includes compounding, assuming you don’t deposit, invest, or withdraw funds during the entire year.

You’re paid interest by the program banks monthly, and you can keep track of how much interest you’ve earned in the app in Account (person icon) → Menu (3 bars) → Investing → Cash sweep program.

The brokerage cash sweep AER paid by program banks minus fees paid to Robinhood is 3.5%. The AER your cash earns is subject to change.

You earn interest on your uninvested brokerage cash that’s swept to the program banks. You only start earning interest once these banks receive your cash. This is affected by the timing of trades, deposits, or withdrawals.

For example, when you purchase a stock, the cash might not be taken out of your account until 1 business day after the trade settles. In this case, you would continue to earn interest during that 1 day, even if that cash is no longer available to spend.

The reverse is true as well—if you sell a stock, you may not get the cash until 1 business day after the trade settles. In this case, you would only start earning interest on that cash after it settles and is swept to the program banks.

Uninvested brokerage cash is any available cash that you have in your brokerage account that you have not yet invested or spent. This money is what is swept (or moved) to program banks where it starts to earn interest.

You can find your swept cash balance in the app in Account (person icon) → Menu (3 bars) → Investing → Cash sweep program.

No, you’ll start earning interest on your first cent. There’s also no maximum brokerage cash sweep balance that you can earn interest on, but cash deposited to these banks will only be covered by FDIC insurance coverage up to $2.5 million (up to $250,000 per program bank, inclusive of deposits you already hold at the bank in the same ownership capacity). If you opt out of one or more program banks, your FDIC insurance coverage may be reduced.

Interest is accrued daily based on your end of day balance at the program banks. Your balance is multiplied by the daily interest rate, which is derived from the 3.5% AER.

Yes, interest on your uninvested brokerage cash that is swept to the program banks will be compounded daily. Each day, you earn interest on your balance, and that earned interest itself also earns interest. Over time, your uninvested brokerage cash multiplies and grows on its own. Compound interest is a powerful tool to help build and accumulate wealth over time. Interest is paid on a monthly basis.

You’ll be paid interest once a month on the last business day of the month*, which will include interest through the end of the month. If the last day of the month falls on a non-business day, you will be prepaid interest for those days on the last business day.

For example, if the last day of the month is a Sunday, that month’s interest will be paid on the preceding Friday, along with what you would earn on Saturday and Sunday.

*In rare cases, you may be paid interest early. This can happen if you leave the program, if your cash moves to a different program bank (e.g. opting out of a bank), or if you make multiple transactions in your account in a short period of time.

Robinhood Securities, LLC provides brokerage clearing services from the U.S. to you as a U.K. customer and therefore the U.K. Financial Services Compensation Scheme (‘FSCS’), which protects U.K. brokerage customers up to £85,000, doesn’t apply.

The brokerage cash sweep is a default feature to your Robinhood brokerage account. Interest is earned on uninvested cash swept from your brokerage account to program banks. Program banks pay interest on your swept cash, minus any fees paid to Robinhood. The annual equivalent rate (AER) is 3.5% as of Nov 5, 2025. The AER might change at any time at the program banks' discretion. Additionally, any fees Robinhood Securities, LLC receives may vary and is subject to change. Neither Robinhood Securities, LLC nor any of its affiliates are banks.

With the brokerage cash sweep program, the eligible uninvested cash in your brokerage account (unrestricted cash intended for investing but that you have not yet invested or spent) is swept to program banks, where it becomes eligible for FDIC insurance up to $2.5 million or $250,000 per program bank, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. If you opt out of one or more program banks, your FDIC insurance coverage may be reduced. Note that until funds are swept to a program bank, they are held in your brokerage account which is protected by Securities Investor Protection Corporation (SIPC). Once funds are swept to a program bank, they are no longer held in your brokerage account and are not protected by SIPC. However, these funds are eligible for FDIC insurance through the Program Banks subject to FDIC insurance coverage limits and any capacity limitations at the banks. Review the Brokerage Cash Deposit Sweep Program Agreement for more information. Robinhood is not an FDIC-insured bank. Deposit insurance covers the failure of an insured bank. Products other than the cash sweep program are not insured by the FDIC, are not deposits, and may lose value. Certain conditions must be satisfied for pass-through FDIC deposit insurance coverage to apply.

Robinhood Securities, LLC 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 upon request or at www.sipc.org. Robinhood Securities, LLC (member SIPC) is a registered broker-dealer and provides brokerage clearing services.