4 ms·

No one knows what Robinhood will do, but no bank can promise a perpetual 3% rate. The rate is probably a teaser. Even if it is perpetual, it may be "on the firs

No one knows what Robinhood will do, but no bank can promise a perpetual 3% rate. The rate is probably a teaser. Even if it is perpetual, it may be "on the first $10,000, with a minuscule rate on larger sums...something that allows them to advertise 3% but offer much less on larger sums.

nodesocket 8y ago
Their FAQ states no caps, though it can vary depending on what the fed does with rates. With the current 2 year treasury being 2.76%, they must making money on fees. I am seriously considering moving my savings from a Capital One money market account that earns 2% to this that earns 3%. That extra percent is decently significant.
- theartfuldodger 8y ago
  You should look into their recent problems. Locking option traders out of their accounts ( potentially millions lost) They have no customer service and a decently easy collection of horror stories related to their lack of customer service.
sireat 8y ago
Kind of funny but I remember 3% rate being kind of normal for a checking account in the early 90s. Of course inflation and Fed was higher back then too. What I don't understand is those people who willingly park their money in CDs at under 1% and the banks proudly advertising these rates. This era of seemingly permanent low(or even negative) rates just somehow seem unnatural. What happened to banker's 6-3-3 rule? "Lend at 6%, borrow at 3% and go golfing at 3:00PM"
- buttcoinslol 8y ago
  > What happened to banker's 6-3-3 rule? "Lend at 6%, borrow at 3% and go golfing at 3:00PM" The Bretton Woods agreement ended.
jonknee 8y ago
> No one knows what Robinhood will do, but no bank can promise a perpetual 3% rate. It's not too crazy, rates have gone up a ton without most bank accounts adjusting from being near 0%. The 10-year is currently just under 3% with the whole curve being really flat and lots of online banks offer over 2%. I currently get 2.05% with my Marcus account and Goldman Sachs isn't exactly known for giving things away (and with 3 month t-bills paying 2.41% they certainly aren't giving anything away!).

nodesocket 8y ago

Their FAQ states no caps, though it can vary depending on what the fed does with rates. With the current 2 year treasury being 2.76%, they must making money on fees. I am seriously considering moving my savings from a Capital One money market account that earns 2% to this that earns 3%. That extra percent is decently significant.

theartfuldodger 8y ago
You should look into their recent problems. Locking option traders out of their accounts ( potentially millions lost) They have no customer service and a decently easy collection of horror stories related to their lack of customer service.

sireat 8y ago

Kind of funny but I remember 3% rate being kind of normal for a checking account in the early 90s. Of course inflation and Fed was higher back then too. What I don't understand is those people who willingly park their money in CDs at under 1% and the banks proudly advertising these rates. This era of seemingly permanent low(or even negative) rates just somehow seem unnatural. What happened to banker's 6-3-3 rule? "Lend at 6%, borrow at 3% and go golfing at 3:00PM"

buttcoinslol 8y ago
> What happened to banker's 6-3-3 rule? "Lend at 6%, borrow at 3% and go golfing at 3:00PM" The Bretton Woods agreement ended.

jonknee 8y ago

> No one knows what Robinhood will do, but no bank can promise a perpetual 3% rate. It's not too crazy, rates have gone up a ton without most bank accounts adjusting from being near 0%. The 10-year is currently just under 3% with the whole curve being really flat and lots of online banks offer over 2%. I currently get 2.05% with my Marcus account and Goldman Sachs isn't exactly known for giving things away (and with 3 month t-bills paying 2.41% they certainly aren't giving anything away!).