Deposit Sweep Program
Brokerage customers who opt in to Cash Management elect to participate in a deposit sweep program (the Insured Network Deposit (IND) Sweep Service), and will have their uninvested cash automatically “swept,” or moved, into deposits at a network of program banks. There are currently six program banks that participate in our deposit sweep program. Cash deposited to these banks will be covered by FDIC insurance up to a total maximum of $1.25 million (up to $250,000 per program bank, inclusive of deposits you may already hold at the bank in the same ownership capacity). These banks will pay interest on the swept cash, and the current annual percentage yield (APY) you will receive from these banks is 0.30% as of March 16, 2020. The program banks may change the APY at any time at their discretion. Please see the Insured Network Deposit Sweep Program Disclosures (IND Disclosures) for more information regarding the FDIC insurance coverage available for funds swept to the program banks.
Robinhood is not responsible for monitoring the amount of your deposits in any program bank, whether these deposits are made through the Cash Management deposit sweep program or otherwise, to determine whether the amount on deposit exceeds the limit of available FDIC insurance. You are responsible for monitoring the total amount of your assets on deposit with each program bank (including amounts in other accounts at the program bank held in the same ownership capacity) in order to determine the extent of deposit insurance coverage available to you on those deposits.
Robinhood Financial 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.
Please note that until funds are swept to a program bank, they are covered by SIPC protection. They are not covered by SIPC protection when on deposit at a program bank.
The following are our FDIC-insured program banks as of July 30, 2020. Please keep in mind, Robinhood may change our network of program banks at any time. If a change is made, we’ll let you know in advance.
No. Sutton Bank issues the Robinhood debit card and also provides the affiliated routing and account number, but it’s not a program bank in our Deposit 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 bank(s) your cash gets swept to using a predetermined order. If you’d like to exclude a specific bank from your sweep options (for example, if you already have deposits at one of the program banks that when combined with the cash swept to that bank through Cash Management take your cash at that bank over $250,000), please contact support.
Yes! Your uninvested cash in the program banks is available for withdrawing, spending, and investing through your brokerage account.