Brokerage sweep program
Brokerage customers who opt in to the brokerage cash sweep program (the IntraFiNetwork Deposit (IND) Sweep Service), will have their uninvested brokerage account cash automatically “swept” or moved into deposits at a network of program banks. There are currently six program banks that participate in our brokerage cash sweep program. Cash deposited to these banks will be eligible for FDIC insurance up to a total maximum of up to $1.5 million (up to $250,000 per program bank, inclusive of deposits you may already hold at the bank in the same ownership capacity). While the FDIC insurance coverage limit at each bank is $250,000, $2,000 is reserved for accrued interest.
A customer with a $250,000 cash balance will have the first $248,000 swept into the first bank on the Program bank list, and the next $2,000 will be swept into the second bank on the Program bank list.
If the sweep amount exceeds $250,000, in certain situations, we may sweep the excess funds to the linked program banks.
You’re responsible for monitoring the amount of your deposits with each program bank. This includes deposits made through the brokerage cash sweep program or otherwise, to determine whether the amount on deposit exceeds the limit of available FDIC insurance. This also includes amounts in other accounts at the program bank held in the same ownership capacity that determines the deposit insurance coverage available to you on those deposits.
The following are our FDIC-insured program banks as of January 31, 2022. 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.
Cash deposited to these banks will be covered by FDIC insurance up to a total maximum of up to $1.5 million (up to $250,000 per program bank, inclusive of deposits you may already hold at the bank in the same ownership capacity). While the FDIC insurance coverage limit at each bank is $250,000, $2,000 is reserved for accrued interest.
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.
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 Robinhood Support.
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, take your cash at that bank over $250,000. Then you would want to exclude that bank from your sweep options.
Yes! Your uninvested brokerage cash in the program banks is available for withdrawing, spending, and investing through your brokerage account.
The brokerage cash sweep is an added feature to your Robinhood Financial, LLC brokerage account. Robinhood Gold is offered through Robinhood Financial LLC. For more information, see the Robinhood Gold User Agreement.
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. As of December 16, 2022, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 4% for Gold customers. The APY might change at any time at the program banks' discretion. Additionally, any fees Robinhood receives may vary and is subject to change. Neither Robinhood Financial LLC nor any of its affiliates are banks.
With the brokerage cash sweep program, the uninvested cash in your brokerage account (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 $1.5 million or $250,000 per program bank, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. Please note that until funds are swept to a program bank, they are held in your brokerage account which is protected by 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. Please see the IND Disclosures for more information.
Robinhood Financial LLC (member SIPC) is a registered broker dealer. Robinhood Securities, LLC (member SIPC) is a registered broker dealer and provides brokerage clearing services. All are subsidiaries of Robinhood Markets, Inc. (Robinhood).