What is Cash Management?

Note

Cash Management is no longer accepting new customers at this time. Existing users from Cash Management can sign up for the waitlist to apply for a migration to the Robinhood Money spending account.

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Overview

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 1.00% annual percentage yield (APY)³.

Keep in mind that the 1.00% APY is as of May 10, 2022 and can change at any time at the discretion of the program banks⁴.

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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

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Debit card, you say?

When you upgrade to Cash Management, you’ll get a debit card issued by Sutton Bank. You can pick from four beautiful designs:

  • Green
  • Black
  • White
  • American Flag

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.

Interested in signing up for Cash Management? Learn how you can get started here.

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 1.00% as of May 10, 2022. APY may change at any time at the program banks’ discretion. Neither Robinhood Financial LLC nor any of its affiliates are banks.

Reference No. 2085641
Still have questions? Contact Robinhood Support