The Robinhood Spending Account is a digital account designed to simplify payments, transfers, and investments directly within the Robinhood platform. It allows customers to send and receive money between friends, enable early paycheck deposits, set up round-ups on purchases to automatically invest spare change, and even gain access to a prepaid card called the Robinhood Cash Card, issued by Sutton Bank. Here’s everything you need to know about how this account works!
Structure and Main Features
When you open a Robinhood Spending Account, you automatically receive an account and routing number linked to its partner bank, JPMorgan Chase N.A. Deposited funds are FDIC-insured up to $250,000 per account holder, offering an important layer of protection in case of bank failure.
With an active account, you can enable the Robinhood Cash Card, which works as a prepaid card. It is available virtually through Apple Pay, Google Pay, Samsung Pay, or physically anywhere that accept Mastercard.
The available balance is automatically loaded based on twice the daily average spending of the previous month. Each purchase reduces the balance, which is then replenished from the linked spending account.
Users can also activate features like early paycheck access, receiving their salary up to two days sooner, depending on the employer’s schedule, and set up recurring investments directly from their paycheck or from round-ups into stocks or cryptocurrencies, fully integrated with Robinhood’s brokerage accounts.
Costs, Limits, and Security
Robinhood does not charge monthly maintenance or service fees for the Spending Account. There are no inactivity, activation, or minimum balance requirements either. However, certain fees apply: ATM withdrawals cost $2.50, which has reimbursement if you’ve received at least $300 in direct deposits in the previous 34 days.
Instant transfers to external banks carry a 1.75% fee (minimum $2). Card usage is capped at $3,000 per day and $10,000 per month for purchases, while ATM withdrawals are limited to $510 per day and $5,000 per month. International usage is supported on the Mastercard® network with no fees from Robinhood, though ATM operators or currency conversion may still apply. Always confirm the most up-to-date fees with the bank before using the account.
Standout Benefits
One of the most popular features is the round-up investing system, where spare change from purchases is automatically invested, and Robinhood gives you a bonus between 10% and 100% of the rounded-up amount in free stock or cryptocurrency. This feature creatively encourages consistent saving and investing habits.
The combination of early paycheck access and the ability to split income between spending, savings, and investments also stands out, promoting financial discipline and seamless money management.
Who Is It Best For?
The Robinhood Spending Account is particularly valuable for existing Robinhood users who want to consolidate their finances and investments in one place. It also appeals to frequent travelers and digital-first users who prefer managing money entirely through an app.
It’s ideal for those looking for a flexible, straightforward prepaid card with clear limits, no annual fees, and the ability to invest automatically with added bonuses. Eligibility requirements are not overly strict, making the account accessible even to individuals with an average credit profile.
How to Open an Account
If you already have a Robinhood account, opening a Spending Account is simple. Just log into the app, go to the “Spending” tab, and start the process. The account links to your existing profile and only requires a few personal details to activate. Once approved, you can request a physical card or use the virtual card right away.
In some cases, having an existing relationship with the bank may be necessary. You can follow the registration steps directly in the app or through Robinhood’s website to activate the Spending Account.
Is the Robinhood Spending Account Worth It?
The Robinhood Spending Account is an innovative solution for those who value digitally integrated finances. It enables smooth money movement, automatic investments with bonus rewards, and a prepaid card, all without recurring fees. For those who embrace convenience and financial technology, it offers strong value.
It’s especially appealing to individuals already engaged in the Robinhood ecosystem and comfortable with moderate risks. Alongside its modern features, it makes starting and growing investments simple, with just a few clicks.
All information in this and other US PIXIN articles is subject to change over time. Please check for updates directly with the institutions and companies mentioned. Approval is subject to the institution’s review.
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