Earlier this week Robinhood announced they would be offering a 3% APY checking & savings account. Given that this is almost 0.5% higher than the next best high yield savings account there was a lot of interest. The issue was that this account didn’t come with the regular FDIC or NCUA insurance you see on most checking/savings accounts but with SIPC insurance instead. The head of SIPC came out and said that SIPC insurance wouldn’t cover this type of account.
Since then Robinhood has deleted the original blogpost and social media posts regarding the new product and issued a new blog post stating that they plan to work closely with regulators and that marketing materials, including the name of the account will be changed. The Robinhood website now also states that there is a cash management account coming soon, so it’s safe to say that the rebrand will be cash management instead of checking/savings. ‘
