Brokerage sweep program | Robinhood

Brokerage sweep program

Customers who opt in to the brokerage cash sweep program (the IntraFi Network Deposit (IND) Sweep Service) will have their eligible uninvested brokerage cash automatically swept or moved into deposits at a network of program banks.

Cash deposited to these banks will be eligible for FDIC insurance of up to $2.5 million as of June 20, 2024 inclusive of deposits you already hold at banks in the same ownership capacity. While the FDIC insurance coverage limit at each bank is $250,000, $2,000 is reserved for accrued interest at each bank. If you choose to opt out of one or more program banks, your maximum FDIC insurance coverage may be reduced.

Example

Let’s say you have a $260,000 cash balance that is eligible to be swept. You’ll have the first $248,000 swept into the first bank on the program bank list, and the next $12,000 will be swept into the second bank on the program bank list (subject to any capacity limitations at the banks).

You’re responsible for monitoring the amount of your deposits with each program bank (including deposits made through the brokerage cash sweep program or in other accounts at the program bank held in the same ownership capacity) to determine whether the amount on deposit exceeds the limit of available FDIC insurance.

Which banks are in our network?

The following are our FDIC-insured program banks as of September 2024. Keep in mind, Robinhood may change the network of program banks at any time. If a change is made, we’ll let you know in advance.

  • Goldman Sachs Bank USA
  • HSBC Bank USA, N.A.*
  • Wells Fargo Bank, N.A.
  • Citibank, N.A.
  • Bank of Baroda
  • U.S. Bank, N.A.
  • Bank of India
  • Truist Bank
  • M&T Bank
  • First Horizon Bank
  • EagleBank
  • CIBC Bank USA
  • BNY Mellon*
Note

*We’re adding BNY Mellon and removing HSBC Bank USA, N.A. on or after October 31, 2024.

Contact us if you have any questions or want to exclude a specific bank from your sweep options. Keep in mind, you can ask to exclude a bank only after it’s been added. Review the IntraFi Network Deposit Sweep Program Agreement for more information.

Is Sutton Bank also a program bank?

No. Although Sutton Bank issues the Robinhood debit card, it’s not a program bank in our brokerage cash sweep program. Your money won’t be swept to Sutton Bank for the purposes of earning interest while you wait to invest.

How does a bank get picked for swept cash?

We choose the banks your cash gets swept to using a predetermined order. If you’d like to exclude a specific bank from your sweep options, contact us.

Example

Let’s say you already have deposits at one of the program banks that, when combined with the cash swept to that bank through the brokerage cash sweep, make your cash at that bank go over $250,000. Then you might want to exclude that bank from your sweep options.

Do I have access to the swept cash?

Yes! Your uninvested brokerage cash in the program banks is available for withdrawing and investing through your non-retirement, investing account and the cash balance is visible in your account.

Pattern day trading

If you've been flagged as a pattern day trader (PDT), you can still sign up for the brokerage cash sweep program, but you won’t be eligible to earn interest until your PDT flag is removed.

If you're flagged as a PDT while enrolled, your enrollment will be paused from the brokerage sweep program and your cash swept back from the program banks. Any accrued interest will be paid to your investing account, but you won’t accrue any additional interest until your PDT flag is removed. For more details, review Brokerage cash sweep and PDT.

Disclosures

The brokerage cash sweep is an added feature to your Robinhood Financial, LLC individual investing account. Robinhood Gold is offered through Robinhood Gold, LLC. For more information, review the Robinhood Gold User Agreement.

Interest is earned on uninvested cash swept from your non-retirement, investing account to program banks. Program banks pay interest on your swept cash, minus any fees or charges paid to Robinhood. The Annual Percentage Yield (APY) 4.5% for Robinhood Gold members as of Sept 19, 2024. The APY might change at any time at the program banks' discretion. Additionally, any fees or charges Robinhood receives may vary and are subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks.

With the brokerage cash sweep program, the eligible uninvested cash in your investing account (unrestricted cash intended for investing that you haven’t 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 investing account which is protected by SIPC. Once funds are swept to a program bank, they are no longer held in your investing 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 IntraFi Network Deposit Sweep Program Agreement for more information.

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.

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Brokerage services are 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).

Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840).Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Please review a list of RHC's licenses for more information. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.

The Robinhood spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Please review a 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® International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

Robinhood Gold Card is subject to credit approval and underwriting. Robinhood Gold Card is offered by Robinhood Credit, Inc., and is issued by Coastal Community Bank, pursuant to a license from Visa U.S.A. Inc. Robinhood Credit, Inc. (“RCT”), is a financial technology company, not a bank.

Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC (“RHG”).

RHF, RHY, RHC, RCT, RHG, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC, RCT, RHG, and RHS are not banks. Investing products offered by RHF are not FDIC insured and involve risk, including possible loss of principal.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

The risk of loss in trading futures can be substantial. Carefully consider if it’s appropriate for you in light of your financial circumstances. Please read the Futures Risk Disclosure Statement prior to trading futures products. Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC) and are not Federal Deposit Insurance Corporation (FDIC) insured. Prior to trading virtual currency Futures products, please review the NFA Investor Advisory & CFTC Advisory providing more information on these potentially significant risks. Futures trading and options on futures trading are offered by Robinhood Derivatives, LLC (“RHD”), a registered futures commission merchant with the Commodity Futures Trading Commission (CFTC) and Member of National Futures Association (NFA) (NFA ID 0424278).

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All Investing involves risk.

Brokerage services are 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).

Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840).Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Please review a list of RHC's licenses for more information. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected.

The Robinhood spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Please review a 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® International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

Robinhood Gold Card is subject to credit approval and underwriting. Robinhood Gold Card is offered by Robinhood Credit, Inc., and is issued by Coastal Community Bank, pursuant to a license from Visa U.S.A. Inc. Robinhood Credit, Inc. (“RCT”), is a financial technology company, not a bank.

Robinhood Gold is a subscription-based membership program of premium services offered through Robinhood Gold, LLC (“RHG”).

RHF, RHY, RHC, RCT, RHG, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC, RCT, RHG, and RHS are not banks. Investing products offered by RHF are not FDIC insured and involve risk, including possible loss of principal.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

The risk of loss in trading futures can be substantial. Carefully consider if it’s appropriate for you in light of your financial circumstances. Please read the Futures Risk Disclosure Statement prior to trading futures products. Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC) and are not Federal Deposit Insurance Corporation (FDIC) insured. Prior to trading virtual currency Futures products, please review the NFA Investor Advisory & CFTC Advisory providing more information on these potentially significant risks. Futures trading and options on futures trading are offered by Robinhood Derivatives, LLC (“RHD”), a registered futures commission merchant with the Commodity Futures Trading Commission (CFTC) and Member of National Futures Association (NFA) (NFA ID 0424278).

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Robinhood, 85 Willow Road, Menlo Park, CA 94025.© 2024 Robinhood. All rights reserved.