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.

Cash deposited to these banks will be eligible for FDIC insurance up to a total maximum of $1.5 million (will go up to $2 million on or after June 1, 2023). That’s 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.

Example

Let’s say you have a $250,000 cash balance. You’ll 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 phone program bank list.

Keep in mind

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.

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Which banks are in our network?

The following are our FDIC-insured program banks as of May 17, 2023. 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

Cash deposited to these banks will be covered by FDIC insurance up to a total maximum of up to $1.5 million (will go up to $2 million on or after June 1, 2023). That’s 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.

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 Insured Network Deposit Sweep Program Disclosures for more information.

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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.

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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.

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Do I have access to the swept cash?

Yes! Your uninvested brokerage cash in the program banks is available for withdrawing, spending, and investing through your brokerage account.

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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 brokerage account, but you won’t accrue any additional interest until you are unflagged as a PDT. For more details, review Brokerage cash sweep and PDT.

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Disclosures

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 May 4, 2023, the Annual Percentage Yield (APY) that you will receive is 1.5%, or 4.65% 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. Starting on or after June 1, 2023, FDIC insurance will increase to $2 million. 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. Review the IND Disclosures 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.

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).

Reference No. 2912957
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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 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. The Robinhood spending account is offered through Robinhood Money, LLC (RHY) (NMLS ID: 1990968), a licensed money transmitter. A list of our licenses has 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. RHC is not a member of FINRA and accounts are not FDIC insured or protected by SIPC. 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.

Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Check out Robinhood Financial’s Fee Schedule for details.

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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 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. The Robinhood spending account is offered through Robinhood Money, LLC (RHY) (NMLS ID: 1990968), a licensed money transmitter. A list of our licenses has 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. RHC is not a member of FINRA and accounts are not FDIC insured or protected by SIPC. 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.

Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Check out Robinhood Financial’s Fee Schedule for details.

© 2023 Robinhood. All rights reserved.