Earn 1.5% Interest on Uninvested Brokerage Cash at Robinhood (Updated)
The reimagined brokerage cash sweep program allows customers to put their money to work
Update on August 15, 2022: As of August 11, 2022 the brokerage cash sweep interest rate increased from 1% to 1.5%. The original blog post has been updated below to reflect this rate change.
We’re introducing our revamped brokerage cash sweep program, which lets all eligible brokerage customers earn 1.5% interest on uninvested cash and helps them earn extra income. With brokerage cash sweep, customers can currently earn 11x more in interest than the national average and can invest or request to withdraw cash whenever they want.*
After depositing funds or selling and settling a given stock, customers will earn 1.5% interest on that cash with the interest compounding daily. Interest is then paid out monthly, and customers can keep track of how much they’ve earned directly within the app.
Brokerage cash sweep is another example of how we’re empowering customers to put their money to work for them.
How to Enroll
Before the initial interest rate change in May, brokerage cash sweep (formerly deposit sweep) offered an interest rate of 0.5% and was only available to customers enrolled in Cash Management. Those previously enrolled were automatically transitioned into the new brokerage cash sweep program with their interest rate increasing to 1% in May and now 1.5% due to higher rates available in the market.
New eligible customers can opt in to brokerage cash sweep after updating to the latest versions of the Robinhood app (v2022.17.0 and 2022.18.0). Once installed, customers may receive a prompt to enroll, or they can tap the Account icon in the bottom right corner, navigate to the Investing tab in the top left menu, and select Enable cash sweep.
How it Works
All eligible customers who opt in to brokerage cash sweep will have their uninvested brokerage account cash automatically “swept,” or moved, into deposit accounts at a network of six program banks.
Cash deposited to these banks will be covered by FDIC insurance up to a total maximum of $1.25 million (up to $250,000 per program bank, inclusive of deposits customers may already hold at the bank in the same ownership capacity). These banks will pay interest on the swept cash, and the current APY customers will receive from these banks is 1.5% as of August 11, 2022.**
Availability
Brokerage cash sweep updates are available to all eligible brokerage customers. To learn more about the program please visit our Help Center.
*As of August 10, 2022 based on data from Bankrate the average rate was 0.13% and is subject to change. Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. Savings account interest rates vary from bank to bank and may be lower or higher than the stated average.
**The program banks may change the APY at any time at their discretion. Please see the Insured Network Sweep Program Disclosures (IND Disclosures) for more information regarding the FDIC insurance coverage available for funds swept to the program banks.
Disclosures: Robinhood is not responsible for monitoring the amount of your deposits in any program bank, whether these deposits are made through the brokerage cash sweep program or otherwise, to determine whether the amount on deposit exceeds the limit of available FDIC insurance. You are responsible for monitoring the total amount of your assets on deposit with each program bank (including amounts in other accounts at the program bank held in the same ownership capacity) in order to determine the extent of deposit insurance coverage available to you on those deposits.
The Cash Sweep Program is an added feature to your Robinhood Financial LLC brokerage account. Interest is earned on uninvested cash swept from your brokerage account to program banks. The Annual Percentage Yield (APY) paid by program banks is 1.5% as of August 11, 2022. APY might change at any time at the program banks’ discretion. Neither Robinhood Financial LLC nor any of its affiliates are banks.