How Does the Robinhood Debit Card Work?

If you wish to turn your online brokerage account into an offline wallet, the Robinhood debit card is what you need. It allows you to spend the money you get as interest on investments.

However, you can choose to leave the funds untouched, and it will yield
interest every month. In this article, we will look at the features of the
Robinhood Debit card and how the card works.

At the end of this article, you
will also understand the debit card features of Robinhood and how it can help you manage your funds. 

With a Robinhood card, investment is much easier. When you open a Robinhood cash management account, you can also get a Robinhood debit card.

The debit card allows you to enjoy all the interests directly as you do with wallets. 

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Robinhood Debit Card—What is it?

Perhaps you’re already familiar with the folklore Robinhood, who steals from the rich and gives to the poor? It was a fascinating story while growing up, but that’s not what we will be discussing today.

A Robinhood brokerage account is an account that allows investors to buy
and sell stocks directly on their phones. It eliminates the need for a broker when you want to buy stock. 

To create a Robinhood brokerage account; there are basic requirements you need, and they include: 

  • Applicants should be 18 years or more to be eligible to open a Robinhood brokerage account. 
  • Only United States Citizens, permanent residents or valid visa holders are eligible to open an account. 
  • People living in the legal US residential address in Puerto Rico and within the US 50 states are also eligible for an account. 

Application confirmation is via email and usually takes a few days to arrive. Note that you may be required to submit additional documents as the case may be. Application confirmation can take 5 to 7 days to arrive.

Therefore, patience is a virtue you should apply after application. 

Once you complete the registration process, the next step is to download the Android or iOS App. You can also access your Robinhood Wed using your internet web browser.

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Some of the supported browsers include Chrome, Edge, and Firefox. 

Once your App is installed and set up, you are ready to begin trading on your mobile phone. There are over 5,000 shares to choose from, and they include a majority of the US exchange-traded (ETFs) and equities. You can also buy cryptocurrency using your Robinhood
account.

However, there are higher risks involved. Some of the coins available
for the Robinhood platform include Bitcoin (BTC), Bitcoin SV (BSV), Bitcoin
Cash (BCH), Dogecoin (DOGE), Etherium (ETH, ETC), and Litecoin (LTC).

At the onset, the platform may appear a little confusing. But with time, you will get used to it. For more features from Robinhood, you might consider getting a gold upgrade. 

Customers who upgrade to Robinhood Gold enjoy some of the following
features: 

  • Expert stock research information from Morningstar 
  • High instant deposit of up to $50,000 
  • Level two market information 
  • Margin access 

If you are interested in upgrading to gold, the platform allows you a 30-day free trial and charges a monthly fee of $5 after. 

Robinhood Cash Management

Robinhood Cash Management system ensures that even uninvested funds will earn you some percentage at the end of the
month. Funds in your account can earn as much as 0.3% annual percentage yield (APY).

Note that the percentage yield is subject to change. Several banks work with Robinhood, and they include:  

  • Wells Fargo Bank NA 
  • Bank of Baroda 
  • US Bank 
  • AMERANT Bank NA 
  • Citibank NA 
  • HSBC Bank USA NA 
  • Goldman Sachs Bank USA 

Features of Robinhood Cash Management  

Some of the features of Robinhood include the Robinhood debit card, Google Pay access, and access to Samsung Pay.

Other features of Robinhood cash management are routing and account numbers for ACH and replacement of lost or stolen cards. 

Robinhood Cash Management Fees  

One of the best advantages of Robinhood is that you will not have to deal with multiple fee charges. Below are the conveniences you will enjoy when you sign up with Robinhood: 

  • There are no transfer fees for moving funds from your bank account to your Robinhood account. 
  • There are no charges for card replacement in case you misplacement or theft.  
  • Enjoy free transactions on ATM when you use one of the 75,000 ATMs in the Allpointor Moneypass network. However, using an ATM outside the network may attract some charges from the provider. 
  • There are no foreign transaction fees when you purchase stock from abroad. However, if your stock payment is in USD, you might be charged a conversion fee. 
  • There are no monthly maintenance fees. You can open and close your account for free. 
  • Not using your debit card for a long time does not attract a fee with Robinhood. 
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For more information about Robinhood fees, follow the link for access to Robinhood’s Fee Plan. 

Robinhood Debit Card

Some of the benefits of Robinhood cash management include access to Robinhood checking and savings account.

A Robinhood debit card is also an additional benefit. You can use your Robinhood debit card to purchase products and services like other cards.

In collaboration with Sutton Bank, you can transfer your uninvested funds into your Robinhood debit card like your credit card. 

With a Robinhood debit card, you don’t need to bother about minimum balances or fees. There are four designs available for the Robinhood debit card. They are green, black, white, and the American flag design. 

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Pros

  • There is no minimum opening deposit 
  • Excellent APY 
  • There is no monthly service fee
  • There are no foreign transaction charges (however, you might pay a conversion fee) 
  • No charges for overdraft  

Cons

  • Requires a Robinhood account 
  • There is no physical office for verification 
  • Robinhood does not cover out-of-network ATM provider charges 
  • The possibility to overdraw is zero 
  • Wire transfer is not possible with a Robinhood debit card 
  • You cannot deposit cash directly into your Robinhood debit card 

How to get a Robinhood Debit Card  

  • To get a Robinhood debit card, you need to download the Robinhood smartphone App. 
  • Open your Robinhood mobile app and click the flag icon below. 
  • Click “Join the waitlist” to be added to the waitlist.  
  • A Robinhood debit card will be mailed to your residential address once the waitlist gets to your turn. 

Is Robinhood Debit Card Good for You?

If you already own a Robinhood account, it might be necessary to get the Robinhood debit card too.

If you wish to earn interest on funds you did not invest, then you might want to consider a Robinhood debit card to keep your uninvested funds. It is a good choice for those who travel a lot and love to shop overseas. 

If you are okay with operating an online bank account, they will be comfortable with Robinhood.

With a Robinhood debit card, you can spend your uninvested funds directly. What is even more? You can use your card abroad. For those that love to keep their finances offline, a Robinhood debit card is not the best.

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Also, without a cash management account, Robinhood debit card is not interesting to use. 

How to Deposit Funds into Your Robinhood Account

You can deposit funds into your Robinhood by visiting the Robinhood website or using the Robinhood mobile app.

Visit the Robinhood website and click on account, and then select banking.

Fill in the required fields. Select the bank account you wish to transfer funds from and click submit. 

On the Robinhood Mobile App, select bank account, then click on the menu. Next, click Transfer and select Transfer to Robinhood. Select your preferred bank account and click submit. 

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Frequently Asked Questions About Robinhood

What is the meaning of Robinhood Cash management? 

It is an optional feature you may enjoy when you open a Robinhood Brokerage account. The cash management feature may also come with a debit card that enables the payroll direct deposit functions. Cash management also allows you to earn interest on uninvested funds. Cash management is similar to a traditional checking account. 

Is Robinhood cash management insured under FDIC? 

Yes. Robinhood works in partnership with several banks. Funds you deposit into Robinhood go into these accounts after a few days. Therefore, funds up to 1.25 million dollars (per depositor) are FDIC insured? 

How do I Get Robinhood cash Management?

You can apply for cash management using the Robinhood mobile app. On your Mobile App, click the Cash tab and fill in the required information. If you are new to Robinhood, you need to open a brokerage account first before applying for a cash management account. 

How safe is Robinhood cash management?  

Robinhood cash management is safe. Funds swept to partner banks are FDIC insured (up to 1.25 million dollars). Funds you keep in your cash management account will not be invested. 

Conclusion

Robinhood debit card functions as a
secondary wallet and allows users more freedom to spend their uninvested cash.
Users also enjoy up to 0.3% interest on their uninvested funds. For those who
trade in cryptocurrency, Robinhood can be your friendly neighborhood for
trading and investment.  

Reference  

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