Robinhood Will Offer Checking Service Promising 3% Interest
- New product will not be insured like a typical bank account
- The fintech startup is the latest to offer debit cards
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Robinhood Financial LLC, one of the most valuable private companies in the financial technology space, is rolling out its take on the traditional bank account starting on Thursday.
The new offering from the Menlo Park, California-based startup is called Robinhood Checking & Savings, and promises a 3 percent interest rate, a sky-high payout in today’s low-yield environment. Robinhood is pitching the service as akin to a checking or savings account, though there are some key differences in how the product was created -- including how it’s insured.