Fashionable funding app Robinhood is launching its first bank card, promising an industry-leading 3% money again on most purchases.
The waitlist is open for the Robinhood Gold Card, issued by Coastal Group Financial institution. It will not have an annual payment, however to get the cardboard you should be a Robinhood Gold member, which prices $5 a month as of this writing. A Robinhood Gold subscription presents numerous perks, together with a 5% APY on uninvested money, a 3% match on Robinhood retirement IRA contributions and extra.
As a part of the announcement, Robinhood additionally launched a brand new profit for Gold members: a 1% limitless deposit increase on all incoming brokerage deposits beginning in early Could 2024. Phrases apply.
Robinhood will start slowly rolling prospects off of the waitlist and transport playing cards inside the subsequent few weeks, stated Deepak Rao, normal supervisor of Robinhood Cash, in an e mail.
Right here’s extra on what the cardboard will supply.
The Gold Card’s options
The Robinhood Gold Card could have an abundance of incentives for many who can qualify. A minimal credit score rating of 690 is required to order a spot on the waitlist.
Future cardholders can count on:
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No annual payment: Technically, the cardboard’s annual payment is $0 — however the required Robinhood Gold subscription prices $5 monthly, that means you will pay $60 a yr to carry the cardboard.
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Rewards: Cardholders will earn 3% money again on all purchases, aside from journey reserving accomplished via Robinhood’s new journey portal, which can earn 5% money again.
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Versatile redemption choices: Rewards are issued as factors that may be redeemed at 1 cent a bit for journey, reward playing cards, buying with eligible retailers or as money that may be immediately transferred to the cardholder’s Robinhood brokerage account.
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Journey perks and protections: The cardboard will supply advantages like journey interruption reimbursement, an auto rental collision harm waiver, prolonged guarantee safety, return safety, roadside dispatch, journey and emergency help, Visa Signature concierge service and buy safety.Â
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Digital playing cards: Cardholders could have entry to digital playing cards with disposable numbers as an added safety possibility when buying on-line. You may additionally be capable of request a brand new card within the app if the bodily card is misplaced.Â
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Choices to simplify free trials and subscriptions: The cardboard will allow you to simply cancel subscription funds, finish free trials robotically and authorize playing cards for one-time use.
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Household-friendly options: You can add as much as 5 members of the family to the account as cardholders, no matter their age. Each cardholder will obtain their very own card, and the first cardholder might set spending limits, monitor customers’ spending and lock misplaced playing cards immediately.Â
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A brand new app: The cardboard will probably be managed in an app separate from Robinhood’s app. The brand new app will present a monetary overview of spending patterns, real-time spending insights and extra.Â
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A referral incentive: Cardholders who refer 10 pals who join the Robinhood Gold Card will get a model of the bodily card that’s constituted of actual 10K gold.Â
Phrases apply for all of those options and advantages.
Is it a very good deal?
Sure. On some ranges, it is an excellent deal, even. Amongst bank cards that provide a flat rewards price on all purchases, the {industry} normal hardly ever exceeds 2% again, particularly for bank cards from main corporations.
On this case, sure, you will should pay a month-to-month subscription payment for a Robinhood Gold membership. But when that payment stays $5 a month, you then’ll break even with the Robinhood Gold Card by spending simply $2,000 per yr — and that is earlier than considering the cardboard’s 5% price on eligible journey bookings or the assorted different perks {that a} Gold membership presents, impartial of the bank card.
You’ll, nevertheless, should decide to the Robinhood ecosystem to get essentially the most out of the Robinhood Gold Card. (For example, it is unclear what choices cardholders might count on from Robinhood’s new journey portal.) However the card does supply each redemption flexibility and regular level worth whatever the redemption you select, which is not all the time the case with different rewards bank cards.