What is Cash Management?
Cash Management is a feature offered through your brokerage account where you'll receive a debit card² issued by Sutton Bank. You can use your debit card and routing and account numbers to buy groceries, pay bills, send checks, and more. Your uninvested brokerage cash is swept to our network of program banks where it starts earning 1.5% annual percentage yield (APY)³.
Keep in mind that the 1.5% APY is as of August 11, 2022 and can change at any time at the discretion of the program banks⁴.
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.
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.
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.
|Features||Cash Management||Spending Account|
|Accepts new customers||No||Yes|
|Account structure||Feature of brokerage account with same balance||Separate account for spending; brokerage account is not required to open|
|Interest earned on cash||Yes, through the brokerage cash sweep program||Not earned on spending balance but earned on uninvested brokerage cash balance*|
|FDIC Insurance||Yes (Up to $1.25M)||Yes (Up to $250K)|
|Debit card||Yes||Yes (Robinhood Cash Card, supports contactless payments)|
|ATMs||Fee-free at 90,000 ATMs||Fee-free at 90,000 ATMs|
|Round ups and rewards||No||Yes|
|Direct deposit||Yes||Yes, with a new number|
|Early direct deposit||No||Yes|
|Paycheck recurring investments into equities in the brokerage account and crypto in the crypto account||No||Yes|
* if you are opted into the brokerage cash sweep program
When you upgrade to Cash Management, you’ll get a debit card issued by Sutton Bank. You can pick from four beautiful designs:
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 debit card.
¹Cash Management is an added feature to your Robinhood Financial LLC brokerage account
²The Robinhood debit card is issued by Sutton Bank, member FDIC, pursuant to license by Mastercard® International Incorporated.
³The brokerage cash sweep Annual Percentage Yield (APY) paid by program banks is 1.5% as of August 11, 2022. APY may change at any time at the program banks’ discretion. Neither Robinhood Financial LLC nor any of its affiliates are banks.