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.
Through Cash Management, cash deposited at these banks is eligible for 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 also pay interest on the swept cash, and the current annual percentage yield (APY)* you will receive is 0.30%. 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.
No. Robinhood offers the Cash Management feature as part of a brokerage account and in conjunction with program banks. The Robinhood debit card is issued by Sutton Bank.
*The Annual Percentage Yield (APY) is 0.30% paid by program banks as of March 16, 2020. APY might change at any time at the program banks’ discretion.