Robinhood, the mobile investment app company, announced Thursday (Dec. 13) that it has launched Robinhood Checking & Savings, a new feature aimed at expanding its mission to overhaul the financial system in America.
In a blog post, Robinhood said its checking and savings product is a departure from traditional accounts that cost more for people who make less money and have unfair and hidden fees associated with them. “We believe you should earn more on your money, and shouldn’t be charged fees to access it,” Robinhood said in its blog post. As a result the Robinhood Checking & Savings account earns people 3 percent interest, which it said is the highest rate available in the market, has no fees attached to it and provides access to 75,000 free ATMs, 24 hours a day along with 24/7 customer support and a debit card that can be personalized. What’s more, Robinhood said the interest compounds and is paid out daily, resulting in an extra $240 each year for a household with $8,000 in the bank.
“You shouldn’t be charged fees to access, save, and invest your own money. Robinhood Checking & Savings has no minimum balance, no monthly fees, no overdraft fees, and no foreign transaction fees. With Robinhood Checking & Savings, you can save hundreds of dollars in fees,” wrote the company.
Robinhood’s foray into banking shouldn’t come as too much a surprise given Bloomberg reported back in June the startup was in talks with regulators about launching banking services. It wasn’t clear then if anything would come of the talks. Robinhood went live in 2014 and since then it has amassed more than 4 million users. Customers are drawn to its minimalist app that lets people invest in stocks without paying fees. In February it rolled out no-fee cryptocurrency trading, garnering a lot of interest before the cryptocurrency market imploded. Robinhood resonates with millennials because of its no-fee structure, full transparency and use of a mobile app.