Robinhood announced this week they will be offering a savings and checking account with a 3% interest rate in early 2019. If you are familiar with the current bond rates, that is an insane number. Signing up for email updates displayed this screen:
However this was short lived as they took down the page today. From what Yahoo is reporting, the Securities Investor Protection Corporation (SIPC) was not aware of this and their insurance is only meant to cover accounts that are used for the intention of investing in securities and not for general checking and savings accounts. I will be curious to see what ends up happening and if they will pull the plug. Apparently their trading service also had a major outage today.
If this does happen, using their savings account for an emergency fund might be a great option. But it doesn’t seem like they have done enough preparation before the announcement, so who knows what is going to happen. If it does go through, I will definitely consider putting our emergency fund into this account when we get to that stage. It is a lot less risky than investing the money, would provide quick access to the funds and would grow a significant amount.
In any case, it still is worth getting on their email list for this service if you haven’t already. You can use my share link and it will bump me up on their priority list.
Update (12/18/18): They posted a blog entry addressing some of the
Have you heard about this? Do you think this is a good emergency fund option?
Chris Roane is a financial blogger who loves to be transparent about money-related issues. He’s paid off massive amounts of credit card debt and is the blog author of Money Stir. His main focus on Money Stir is talking about how money relates to our relationships, personal development, and how to plan for the future we want. He’s been quoted on Market Watch, The Ladders, and other publications.