Update 1/13/24: According to this fee schedule the monthly fee is now $6.99
Update 12/13/23: It’s now 5%
Update 12/16/22: Increased to 4%
(Update 11/7/22: Now 3.75%)
Robinhood announced today a new benefit of the Robinhood Gold subscription:
Get 3% APY on uninvested funds in your Robinhood cash account.
Robinhood Gold membership costs $5 per month, and comes with a free 30 day trial. There are a few other benefits other than the higher APY rate for things like margin investing and few more, details here.
3% APY is a very good rate on cash, at the top of what’s currently available at time of this writing. Hopefully Robinhood will continue to increase the rate if rates trend higher.
The $5/month can be worth it for someone who trades a lot with Robinhood and lands up with large cash balances at times. Perhaps some will find it worthwhile the nice interest rate alone, though there are other accounts with similar or nearly similar rates which don’t have a monthly fee.
Hat tip to readers Josh M and Erik