What is a Robinhood spending account?

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Overview

The Robinhood spending account¹ is an account that lets you spend, opt into round ups and bonuses, and get paid early. You’ll also get a Robinhood Cash Card² issued by Sutton Bank. You can use your Robinhood Cash Card and routing and account numbers to buy groceries, pay bills, send checks, and more.

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Robinhood Cash Card, you say?

When you open a Robinhood spending account, you'll get a Robinhood Cash Card issued by Sutton Bank.

If you don't want a physical debit card, you can opt for a virtual debit card only. You can use the virtual card online and through Apple Pay, Google Pay, or Samsung Pay. If you ever change your mind, we'll mail you a card.

Interested in opening a Robinhood spending account? Get started here.

¹The Robinhood spending account is provided by Robinhood Money LLC (“RHY”)(NMLS ID: 1990968), a licensed money transmitter. RHY is not a bank.

²The Robinhood Cash Card is issued by Sutton Bank, member FDIC, pursuant to license by Mastercard®.

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If I am using Cash Management today, what would change if I signed up for a Robinhood spending account?

Cash Management is a feature of your Robinhood brokerage account, offered by Robinhood Financial LLC. The Robinhood Spending account is a separate account, offered by Robinhood Money LLC, a licensed money transmitter, and does not require having a brokerage account.

Question: What do I have through Cash Management today?

Answer: Cash Management is offered through your brokerage account, and you have access to the following features.

  • Interest on uninvested brokerage cash held in the account, provided through the brokerage cash sweep program
  • FDIC Insurance for up to $1.25M provided by the brokerage cash sweep program banks
  • Routing and account number that you can use for direct deposit
  • Debit card
  • Fee-free ATMs
  • Pay by check

Question: What happens when I open a Robinhood spending account when I already have a Cash Management account? What’s different about it?

Answer: Here are some things that will change for you when you already have Cash Management and you open a Robinhood spending account.

  • Your brokerage account will be downgraded from having Cash Management to a brokerage account with access to the brokerage cash sweep program.
  • A spending account is created, separate from your brokerage account
  • Cash held in your spending account will not earn interest
    • Eligible uninvested cash held in your brokerage account will continue earning interest.
  • Cash held in your spending account is FDIC insured up to $250,000
    • Your uninvested swept cash balance will continue having FDIC insurance up to $1.25M
  • You may be issued new routing and account numbers that you can use for direct deposit
    • If you are issued new numbers, old account and routing numbers from Cash Management will no longer work
  • You’re sent a new Robinhood Cash Card
    • Your old debit card from Cash Management will no longer work
  • You’ll have the option to opt into round up and rewards on your Robinhood Cash Card
  • You’ll have the option to opt into getting paid up to 2 days early
  • You’ll have the option to opt into paycheck recurring investments into equities in the brokerage account and crypto in the crypto account

Note: If you’re currently enrolled in the brokerage cash sweep program, where you earn interest on your uninvested brokerage cash balance, you won’t lose this feature once you transition to the Robinhood spending account. You can continue to track your interest earnings in the Investing section of the Account tab.

FeaturesCash ManagementSpending Account
Accepts new customersNoYes
Account structureFeature of brokerage account with same balanceSeparate account for spending; brokerage account is not required to open
Interest earned on cashYes, through the brokerage cash sweep programNot earned on spending balance but earned on uninvested brokerage cash balance*
FDIC InsuranceYes (Up to $1.25M)Yes (Up to $250K)
Debit cardYesYes (Robinhood Cash Card, supports contactless payments)
ATMsFee-free at 90,000 ATMsFee-free at 90,000 ATMs
Sending checksYesYes
Round ups and rewardsNoYes
Direct depositYesYes, with a new number
Early direct depositNoYes
Paycheck recurring investments into equities in the brokerage account and crypto in the crypto accountNoYes

* if you are opted into the brokerage cash sweep program

Brokerage accounts are offered through Robinhood Financial, LLC, ("RHF") a registered broker dealer (member SIPC) and Robinhood Securities, LLC, ("RHS") a registered broker dealer (member SIPC). Cryptocurrency accounts are offered through Robinhood Crypto, LLC ("RHC") (NMLS ID: 1702840). Spending accounts are offered through Robinhood Money, LLC ("RHY") (NMLS ID: 1990968), a licensed money transmitter. RHF, RHY, RHC and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC and RHS are not banks. Securities products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. Cryptocurrencies held in RHC accounts are not FDIC insured nor SIPC protected. RHY products are not subject to SIPC protection but funds held in the spending account and card account may be eligible for FDIC pass-through insurance.

Your spending account is offered through Robinhood Money, LLC ("RHY") (NMLS ID: 1990968), a licensed money transmitter. RHY is not a bank. The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard®.

Round-ups and rewards are sent from your spending account with, and are a service of, Robinhood Money . You authorize the transfer of round-ups from your spending account with Robinhood Money to your Affiliate accounts. You must separately place a recurring trade order with Robinhood Financial, LLC to invest in securities, or with Robinhood Crypto, LLC to invest in cryptocurrencies through this program. For round-ups and rewards to be available to you, you need to have a brokerage account with Robinhood Financial, LLC . All brokerage products and services are provided by Robinhood Financial. Robinhood Crypto, LLC provides cryptocurrency trading pursuant to applicable state money transmission and virtual currency licenses.

Out-of-network ATM fees and other fees may apply. See the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement.

Reference No. 2085641
Still have questions? Contact Robinhood Support