Robinhood (HOOD) is targeting large banks and their ATMs for deposits.
The trading platform, which has transitioned into a quasi-bank and wealth management service, introduced two new offerings aimed at competing with major American banks such as JPMorgan (JPM), Citigroup (C), and Bank of America (BAC).
Robinhood Banking will offer traditional checking and savings accounts with a 4% annual percentage yield, exclusively for members of the platform’s Gold service. This service comes with FDIC insurance through Robinhood’s partnership with Coastal Community Bank.
Read more: 10 top high-yield online checking accounts for March 2025 (up to 7.00% APY)
Additionally, the company pledges to deliver “cash to your door” via an app akin to Uber’s (UBER) for its banking customers.
Robinhood co-founder and CEO Vlad Tenev shared with Yahoo Finance that the goal is to create a one-stop-shop for wealth management (see video above).
He mentioned the increasing demand for home cash delivery to help people evade various ATM-related crimes, “especially in San Francisco.” According to Tenev, cash will arrive at one’s home in a large, plain envelope.
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Tenev did not dismiss the possibility of pursuing a bank charter in the future. The company initially considered this option in 2019 but found it too expensive.
Robinhood Strategies is positioned as a wealth management solution with an annual fee of 0.25%, capped at $250, for premium Gold members. Users can start with as little as $50 to access portfolios composed of exchange-traded funds (ETFs) managed by investment professionals, referred to as “private bankers.” A $500 minimum unlocks access to individual stocks within those portfolios.
Read more: Robinhood Gold Credit Card review: 3% cash back for investors
Tenev and Robinhood maintain a rapid pace of product innovation following last year’s developments.
Recently, the company launched a prediction markets hub within its app, allowing users to bet on events ranging from future Fed rates to NCAA tournament outcomes.
In October 2024, event contracts were introduced for the presidential election, enabling platform customers to trade on “who will win the 2024 presidential election.”
The platform also recently added features for futures and index options trading.
Moreover, it has unveiled Robinhood Legend, described as a more streamlined platform tailored for advanced traders.
Robinhood Legend enables users to open up to eight charts simultaneously in a single window, and will enhance various technical indicators like Bollinger Bands.
