Robinhood quietly withdraws ‘Cash Management’, the renamed 3% checking account that they released with so much fanfare. Can you trust the company after pulling a stunt like that? Apparently they didn’t have insurance and lied about having it. Thoughts? Can this company still be trusted to keep your investments safe?
TOP 22 Comments
- General Motors / EngKambuchamoreSo if Robinhood go under, all our investment is lost? No FDIC insured?
- Robinhood is SIPC insured which protects your brokerage account and the funds / value in it. They claimed they were going to offer a checking and savings account and declared that SIPC would protect it as well. The CEO of SIPC immediately said no fucking way, we only insure brokerage accounts and Robinhood said 'oops jk we're gonna do some more research'.
Whole thing was concerning because it was a very stupid mistake to make and they did a whole PR blitz around it.Feb 63
- Our biggest fuck up so far :( at least I can say that it was more of a mistake than a purposeful lie. We're working with regulators to make sure we're compliant.
- Considering it’s a bunch of kids who do not even bother to consult a good SEC lawyer, I would only put money that I am ok losing. They might wake up one day and say oops sorry, fyre festival
- Synchrony Nebula99It still says Cash Management coming soon in the app. Where did you get the information?
- Capital One / ProductXBom05moreThe cash in your brokerage account would be the only part of your Robinhood account that might be at risk if the company fails. It is those cash funds that are SIPC insured. Your stocks are safe no matter what. SIPC is a pretty good safety net as it is a pooled insurance policy that all brokers pay into.