Financial services company Robinhood has unveiled afor its new debit card, the Robinhood Cash Card. This debit card encourages investments in stocks and cryptocurrency, and can be considered an early pioneer of both types of rewards. Unlike traditional debit cards and you’ll need to go beyond transactions to earn rewards.
With the Cash Card, you will have the option of rounding up your purchases to the nearest dollar and investing the difference, i.e. the “reserve currency”, in crypto or stocks. This approach is reminiscent of that of the financial services company, which automatically invests the currency of rounded transactions. But the Robinhood Cash Card won’t require a fee to maintain the account like Acorns does. And at the end of each week, Robinhood will give you a bonus of 10% to 100% of your rounded investments – up to a maximum of $10 per week – making it a more valuable program than Acorns.
You will be able to choose to invest and earn rewards in one of the seven cryptocurrencies currently offered by Robinhood: bitcoin, bitcoin cash, bitcoin SV, dogecoin, ethereum, ethereum classic and litecoin.
Robinhood is currently rolling out the ability to move crypto from the platform to your own wallet. According to a representative of the company, 250,000 users have already signed up for the crypto wallet program. The popular stock and cryptocurrency trading app is expecting 500,000 users in the coming weeks.
The Robinhood Cash Card will have its own “spending account” in the app, separate from your brokerage account, so it doesn’t require you to open a separate bank account. You can add funds by transferring money from linked savings or checking accounts. Alternatively, you can have your paychecks deposited directly into your Robinhood account. There is no minimum balance requirement for your spending account to obtain or maintain the Cash Card. And because it’s a debit card, there’s no credit check.
There are no ATM or overdraft fees associated with the Cash Card. The Robinhood brokerage account is FDIC insured up to $250,000, which minimizes the risk associated with other crypto cards. You will also be able to send checks from this account. The cash management card – Robinhood’s former debit card – has been discontinued in preparation for the launch of the payment card.
Robinhood told us in an email that, starting this summer, the company plans to enable cash back and savings functionality at specific brands and retailers. We’ll keep you posted with more details as we learn them.
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