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?
No
It still says Cash Management coming soon in the app. Where did you get the information?
Update the app and cash management disappears
No
So 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.
What's the difference between SIPC insurance of cash on a brokerage account vs FDIC of cash on checking? Besides the limit
I just use Robinhood to buy dem weed stocks. Would never ever put my savings there.
No. In fact I’m pulling money out of it. Only leave play money there.
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
Fyre was not SIPC insured
Sarcasm sir. Overpromising and underdelivering a myth.
I think bcoz of regulations they r going to withdraw
The fact they announced this feature without speaking to regulators first should tell you all you need to know.
No