Robinhood takes on Apple with a 4.65% savings account

Robinhood has introduced a new instant access savings account paying an interest rate of 4.65 per cent.

The move, which comes a day after the latest Fed interest rate hike, will be for Robinhood’s Gold Members, who pay $5 per month for membership.

It is also three weeks since Apple launched its own highly competitive savings account launched offering 4.15 per cent, which brought in $1bn in its first four days.

Robinhood says the rate is 19x more interest when compared to the national average savings rate.

“At Robinhood, we want our customers to feel confident and secure when they use our products. All eligible customers who opt in to brokerage cash sweep have their uninvested brokerage account cash automatically “swept,” or moved, into deposit accounts at a network of program banks.” 

The cash deposited to these banks is covered by FDIC insurance up to $1.5m (up to $250,000 per program bank, inclusive of deposits customers may already hold at the bank in the same ownership capacity). On June 1st, this maximum will increase to up to $2m. 

Non-subscriber Robinhood accounts earn 1.5% interest for all uninvested brokerage cash.