Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options trading entails significant risk and is not appropriate for all customers. RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement). RHC is not a member of FINRA and accounts are not FDIC insured or protected by SIPC. Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. RHF, RHY, RHC and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated. The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard®. A list of our licenses has more information. The Robinhood spending account is offered through Robinhood Money, LLC (RHY) (NMLS ID: 1990968), a licensed money transmitter. Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency services are offered through Robinhood Crypto, LLC (RHC) (NMLS ID: 1702840). Review the IND Disclosures for more information.īrokerage services are offered through Robinhood Financial LLC, (RHF) a registered broker dealer (member SIPC) and clearing services through Robinhood Securities, LLC, (RHS) a registered broker dealer (member SIPC). However, these funds are eligible for FDIC insurance through the Program Banks subject to FDIC insurance coverage limits and any capacity limitations at the banks. Once funds are swept to a program bank, they are no longer held in your brokerage account and are not protected by SIPC. Until funds are swept to a program bank, they're held in your brokerage account which is protected by SIPC. If you opt out of one or more program banks, your FDIC insurance coverage may be reduced. With the brokerage cash sweep program, the eligible uninvested cash in your brokerage account (cash intended for investing but that you have not yet invested or spent) is swept to program banks, where it becomes eligible for FDIC insurance up to $2.25 million or $250,000 per program bank, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. Neither Robinhood Financial LLC nor any of its affiliates are banks. Additionally, any fees Robinhood receives may vary and is subject to change. The APY might change at any time at the program banks' discretion. The Annual Percentage Yield (APY) is 1.5% as of Augor 5% for Robinhood Gold members as of Nov 15, 2023. Program banks pay interest on your swept cash, minus any fees paid to Robinhood. Interest is earned on eligible uninvested cash swept from your brokerage account to program banks. For more information, see the Robinhood Gold User Agreement. Robinhood Gold is offered through Robinhood Financial LLC. The brokerage cash sweep is an added feature to your Robinhood Financial, LLC brokerage account. When the rate goes down, mortgage rates and other loan rates often do as well. Keep in mind, the impact of a fed funds rate decrease isn’t all bad. We'll announce these changes so you're aware before it happens. This also means that the rate would go up if the Federal Reserve announces an increase to the federal funds rate. When the federal funds rate fluctuates, the rate you receive through the brokerage cash sweep may also change. These banks pay interest rates that are determined in part by the federal funds rate, which moves up and down as mandated by the Fed. When you opt your brokerage account into the brokerage cash sweep program, your money is held at one or more of the banks in our program. The Fed uses various tools it uses to meet these goals, but interest-rate changes often get the most attention because they directly impact on how much interest you can earn and how much it costs to borrow. In short, the Federal Reserve Bank (or “the Fed”) and market conditions are the biggest factors in APY fluctuations.Ĭongress assigns 3 main goals to the Fed: maximum sustainable employment, stable prices, and moderate long-term interest rates.
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