Robinhood, the online stock trading platform that enjoyed explosive growth during the early days of the COVID-19 pandemic when meme stocks were the rage, has announced plans to offer banking services.
It plans to launch a new platform called Robinhood Banking. Users can access their accounts and engage in other banking services, such as sending and receiving money. Even though it’s a virtual bank, Robinhood says account holders will be able to have cash withdrawals “delivered on demand right to your doorstep.”
Depositors can earn interest of up to 4% APR and enjoy insurance on deposits. While Robinhood is not a bank that can qualify for FDIC insurance, the company said it is partnering with a third-party bank that will provide that guarantee.
Robinhood Banking, which will offer checking and savings accounts to Robinhood Gold customer, will launch later in 2025, the company said.
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