Robinhood's New Debit Card Turns 'Spare Change' Into Investments
Posted On March 24, 2022
Image source: Getty Images
Robinhood’s new debit card helps you invest your spare change when you shop.
- Robinhood has launched a new debit card with which customers can round up their purchases to the nearest dollar and invest the difference.
- This summer, Robinhood plans to also launch an “instant savings” program that offers rewards and cash back at certain stores.
Robinhood changed the investment landscape by offering commission-free trading. They have now taken their offerings a step further by introducing the Robinhood Cash Card. It’s from Robinhood Money, and gives customers rewards for spending.
How it works
Robinhood Cash Card customers can round up their purchase amounts to the nearest dollar for every debit card transaction. If you spend $4.80 on a latte, Robinhood will round the payment up to $5, and the extra $0.20 can be used to buy a stock or crypto you choose.
To help encourage Cash Card customers to use this feature, Robinhood is giving weekly bonuses on round-ups. To “support … customers’ investing goals,” Robinhood Money will give a bonus of 10% to 100% (capped at $10) on their weekly round-ups.
There are no monthly or subscription fees to use this new feature. In addition, the card has no (in-network) ATM, overdraft, or account minimum fees. Cash Card customers get access to 24/7 phone support and in-app educational resources, and can access a wide range of investment assets through the Robinhood app.
More benefits to come
Robinhood states that starting this summer, it will offer Cash Card customers instant savings at H&M, Chevron, and Chipotle, and plans to add others to the list. Robinhood says it wants this instant savings program to help offset the higher prices that people are paying due to inflation.
Robinhood will also offer customers access to paychecks up to two days early if they set up direct deposit of those paychecks. Customers can also use their “split your paycheck” feature to automatically invest a portion.
The new Cash Card replaces the existing Cash Management product. With Cash Management, spending came from investors’ brokerage accounts. The Cash Card works with a separate account from their Robinhood brokerage account.
For those looking for rewards programs, this new program could not only help you earn benefits, but also help you build wealth. Those interested in the Cash Card can sign up for the waitlist on Robinhood’s website.
Top credit card wipes out interest into 2023
If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR into 2023! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read The Ascent’s full review for free and apply in just 2 minutes.