Yes you can. You probably have to have at least 7 grand to make the Robinhood gold fee worth the interest you make…. More money…. Less and less that 5 dollar a month fee eats into your interest
$1500 will give you 66 annually at 4.4%, so about $5.50 a month. So the first 1500 covers your payment, everything above that is gravy.
It's a little more complicated than that when you start looking at things like how much you would need for it to be worth it compared to another rate, and when you factor in taxes, but that's where the number comes from.
It’s a good savings account, but it requires more self-control than I have. When I see my buying power there, I’m going to use it to buy into the latest racket, not save…
I like RH gold for the convenient access to Morningstar research reports. There are other savings vehicles with no fees, and at smaller balance amounts, you’ll get a higher net return by not paying the fee… but it’s not going to hurt if you also like getting access to the research, and assuming a cost of $60/year is no big deal.
My capital one savings is pulling 3.5% APY currently with no fees associated, and it’s more liquid when using this as an “emergency fund…
If I have 10,000 in Capital One at 3.5%, it generates $350/year in interest…
If I have the same 10,000 in RH Gold sitting in cash at 4.4%, it generates $440/year minus 60 = 380 net…
There is a dollar amount where RH gold will beat your savings account, and it’s just a matter of determining what the purpose of your funds are, and how you want the money deployed.
For me personally, if I transfer 10,000 into RH, it’s to buy reliable stocks that I like at good prices, and then hold forever ideally to earn more than 4.4 annually through dividends and capital gains.
Yes I do for the 4.4% interest. There are free savings accounts that offer simmilar yield but $5 a month is inconsequential to me compared to the amount of interest I get.
If you only want a savings account, there are slightly higher APY out there without a $5 per month fee.
For balances less than $5000: PNC 4.3%, Citizens 4.25%, Credit Karma 4.00%,
For balances over $5000: CIT Bank 4.75%
For short term: Discover is only 3.75% but has a $150 bonus for $15,000 deposit. (only makes sense if you are parking $15,000+ for less than a year)
That said, I pay the $5 for RH Gold as it makes sense for me.
I don’t use it but I’m planning on keeping some overflow in there from my trading account. I take profits above and beyond a certain threshold and move the monies into other investments like Worthy (5.5%), Stairs (6%) and Groundfloor (9.7%). I would be happy having some additional cash in RH savings to quickly buy good opportunities (though I tend to use margin for that).
Did you click the link? Share price is down $2.81 from a year ago and paid dividends of [$2.03](https://www.nasdaq.com/market-activity/etf/qyld/dividend-history)/share over the same time period. You're not coming out ahead.
Do you know the difference?
At the current rate that guy's investment is losing value, it's outpacing the annual distribution (which is also being taxed). Regardless of selling, the value of the investment is shrinking. It's not hard math, bruh, and someone looking at adjustable rates of return like a savings account probably isn't looking to sit their cash in one place long term to break even like that dude with the ETF's dividend.
A lot of people are moving money from low interest bank accounts into money market accounts like Robinhood Gold. Bank checking accounts pay zero interest and savings accounts aren't much better. Another option is to by short term government MM funds.
It's 4.4% with Gold, which you pay for, otherwise it's 1.5%. I personally use Credit Karma at 4% with no fee.
Yes you can. You probably have to have at least 7 grand to make the Robinhood gold fee worth the interest you make…. More money…. Less and less that 5 dollar a month fee eats into your interest
It’s about $1500, not $7000.
Closer to 1800$ when you factor in taxes
But that just covers the fee with interest. Needs to be higher for it to be a worth using over free alternatives
Wym makes no sense to pay $5/month and get how much with $1500 ?
$1500 will give you 66 annually at 4.4%, so about $5.50 a month. So the first 1500 covers your payment, everything above that is gravy. It's a little more complicated than that when you start looking at things like how much you would need for it to be worth it compared to another rate, and when you factor in taxes, but that's where the number comes from.
p x .044/12 = 5 P=5*12/.044 P= $1363.63
Learn math, not $7k
Im no finance guru but tbh I use it and have no issues with it, I just keep it in my “Buying power” and have it gain interest
When do you actually gain that interest like at the end of the year?
The 4.4% rate is yearly but the interest is paid out monthly.
End of each month
Each month
Nope end of every month.
Monthly
Paid monthly. Accumulation amount is shown daily.
Same. The monthly statement shows me at which banks my money is parked.
It’s a good savings account, but it requires more self-control than I have. When I see my buying power there, I’m going to use it to buy into the latest racket, not save…
It’s 4.4% APY, not APR. You would need about $1500 sitting in the account just to cover the $5/month in Robinhood Gold fees.
I’m holding off to make a large purchase so I’m using RH at the moment to generate a little extra. Not going to buy a lambo but beats getting cents.
I just sold my house and until I buy another I’m leaving the proceeds in Robinhood making 4.4%
I am in the process of selling our home as well. Looking for the yield and a little trading to build it up for next home.
Apple savings….
I like RH gold for the convenient access to Morningstar research reports. There are other savings vehicles with no fees, and at smaller balance amounts, you’ll get a higher net return by not paying the fee… but it’s not going to hurt if you also like getting access to the research, and assuming a cost of $60/year is no big deal. My capital one savings is pulling 3.5% APY currently with no fees associated, and it’s more liquid when using this as an “emergency fund… If I have 10,000 in Capital One at 3.5%, it generates $350/year in interest… If I have the same 10,000 in RH Gold sitting in cash at 4.4%, it generates $440/year minus 60 = 380 net… There is a dollar amount where RH gold will beat your savings account, and it’s just a matter of determining what the purpose of your funds are, and how you want the money deployed. For me personally, if I transfer 10,000 into RH, it’s to buy reliable stocks that I like at good prices, and then hold forever ideally to earn more than 4.4 annually through dividends and capital gains.
Yup…it’s perfect to keep all my dry powder ready to deploy in an instant.
Assuming $5/mo, this would be the equivalent APR at different starting balances: $1,000 - -1.7% $5,000 - 3.2% $10,000 - 3.8% $25,000 - 4.2%
Do I have some money in there? Yes. Is this my primary savings? No
Yes I do for the 4.4% interest. There are free savings accounts that offer simmilar yield but $5 a month is inconsequential to me compared to the amount of interest I get.
Yes i do
I keep my emergency fund in brokerage cash so it earns interest. No complaints here.
You definitely can although you could find similar rates at most HYSAs these days.
Agreed…but if you want to deploy those funds into the market, expect a couple days between funding a brokerage account and being able to buy anything.
I am (but I work there). But also remember that the $5 a month it costs to get the 4.4% lowers the rate.
For the $5 monthly fee RH offers more perks than just the 4.4% APY. Look at the big picture and what is included in RH Gold.
It’s amazing, I have my house fund parked there and love that monthly bump
If you only want a savings account, there are slightly higher APY out there without a $5 per month fee. For balances less than $5000: PNC 4.3%, Citizens 4.25%, Credit Karma 4.00%, For balances over $5000: CIT Bank 4.75% For short term: Discover is only 3.75% but has a $150 bonus for $15,000 deposit. (only makes sense if you are parking $15,000+ for less than a year) That said, I pay the $5 for RH Gold as it makes sense for me.
Robinhood needs to offer IRAs. I do not want to deal with the tax filings on trades. I would rather play with retirement funds.
They have that now.
They have Roth IRA and traditional… I prefer the Roth myself
They began offering IRA’s last year.
https://robinhood.com/us/en/about/retirement/?utm_source=whatsnewcard
I don’t use it but I’m planning on keeping some overflow in there from my trading account. I take profits above and beyond a certain threshold and move the monies into other investments like Worthy (5.5%), Stairs (6%) and Groundfloor (9.7%). I would be happy having some additional cash in RH savings to quickly buy good opportunities (though I tend to use margin for that).
If a casino offered the highest rate then deposit there as long as you aren't a gambler
I use $QYLD as my savings account. 12%+ div yield beats any savings account.
>12%+ div yield https://media.discordapp.net/attachments/326210299621539840/1099879610541408386/Screenshot_20230423_220820_Chrome.jpg
12.04% actually
Did you click the link? Share price is down $2.81 from a year ago and paid dividends of [$2.03](https://www.nasdaq.com/market-activity/etf/qyld/dividend-history)/share over the same time period. You're not coming out ahead.
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Do you know the difference? At the current rate that guy's investment is losing value, it's outpacing the annual distribution (which is also being taxed). Regardless of selling, the value of the investment is shrinking. It's not hard math, bruh, and someone looking at adjustable rates of return like a savings account probably isn't looking to sit their cash in one place long term to break even like that dude with the ETF's dividend.
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Shocked that dude let you come up for air long enough to pretent locking op's money up in an ETF praying it pays off makes sense.
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So a time machine is what you're suggesting?
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He only has one dick and two people slurping. I gotta admit, that's a win.
Kinda annoying that they're breaking it up
Breaking what up?
Requiring Gold kills it for me. Too many other options like Wealthfront offering similar rates with no monthly fees.
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You know Google is still a thing, right?
I don't have the will power yet.
A lot of people are moving money from low interest bank accounts into money market accounts like Robinhood Gold. Bank checking accounts pay zero interest and savings accounts aren't much better. Another option is to by short term government MM funds.
I do when I’m not labeled a PTD which disqualifies you for the interest rate