Robinhood fdic limit
Is 250k. Is it not recommended to keep more than that with Robinhood? What are the risks?
Why use garbage like robinhood? Way better brokers out there.
Inability to trade while markets are open and outages come to mind.
Pick one of this
If you keep your money in cash 🤤
Is it only for cash holdings or even stocks? Say if you have 500k stocks in fidelity. Am I covered fully or just the 250k?
FDIC is cash account only. Look for SIPC for stocks.
Thanks 🙏🏻
Just 250k
The risk is if Robinhood “bankrupts”, you’ll only get money back up to $250k
There is another meme type phenom, and the OCC comes for several billion, and they can't remove the buy button
I keep 150K in Robinhood to avoid going over limit due to capital gains, and spread my investments across multiple brokerages, large banks, and credit unions If a situation arises where I want to store more than $250K, I will purchase real estate in affluent communities, and pay a property management company to maintain the residence, and rent it out For me, it's a better parking space for my money when not protected by FDIC
Robinhood fdic limit is $250k per bank they partnered with. They have partnered with multiple banks, so the total fdic limit is $2.25M. They ensure to distribute your money across banks to not hit the ceiling.
our FDIC limit is 2.25m because we split the cash around 9 banks, each with a $250k
Is that something one has to enable or is it automatic? Also can you share any link?
@kg45p cash sweeps are automatic, you can view more here (second paragraph) https://robinhood.com/us/en/support/articles/insurance/
The risk is Google “Silicon Valley Bank” and decide for yourself.
Google the difference between solvency and liquidity issues.
How does that apply to OPs concern?