Robinhood cash sweep program

Robinhood Cash Sweep Rates


2022 Robinhood cash sweep program (brokerage, FDIC-insured bank account, money market funds). Robinhood cash interest rates.


Robinhood Cash Sweep Options


If you have uninvested funds at Robinhood, you might be looking for ways to make the most of your cash balance. If so, you are in luck. Robinhood has a generous cash sweep program that you can take advantage of.

In fact, you can earn more cash sweep interest at Robinhood than you can at most other brokers.


How to Activate and Cancel Cash Sweep in a Robinhood Account


Cash Sweep at Robinhood is not active by default. If you would like to take advantage of the program, you must let Robinhood know that you want to use the feature.

Here is how to activate Robinhood’s cash sweep option.

You can view your cash sweep status on the Robinhood website, but changes (including switching the feature on and off) must be made on the app.

To find the Cash Sweep toggle on the app, navigate to the account tab (person icon at the bottom of the app interface) and then access the menu (three horizontal lines on the top-left of the screen).


Robinhood Cash Sweep Activation


From there, select ‘Investing’ and scroll down to ‘Cash Sweep Program.’

You will see a button that allows you to either enable or deactivate cash sweep.


Robinhood Cash Sweep Activation


Robinhood Cash Sweep Rates


Robinhood offers very attractive cash sweep rates. Regular brokerage account holders get one rate, and Robinhood Gold members get another. Both are good, but Gold members get a much better deal.

Standard account holders receive 1.5% APY in interest, paid every month.

Robinhood Gold members get 3.75% APY in interest, also paid monthly.


Robinhood Promotion


Up to $200 in FREE stock + transfer fee reimbursement.

Open Robinhood Account


Is Cash Sweep at Robinhood Safe?


Robinhood is partnered with several major banks, and all funds in the sweep program are FDIC-insured.

As far as safety is concerned, Robinhood’s cash sweep program is comparable to a regular bank account.


Robinhood Cash Sweep Banks


For the cash sweep program, Robinhood’s FDIC insurance protects up to $1.5 million in client funds. Each bank in the program offers FDIC insurance for up to $250,000, and any client funds above $250K are swept to the following bank on the list.

So, if you have 500,000 in uninvested cash, Robinhood would sweep your funds into two separate bank accounts.


Withdrawing From Robinhood’s Cash Sweep Program


Withdrawing money from a Robinhood brokerage account is the same for clients who have opted into the sweep program as it is for those who have not.

Cash sweep activity is not reflected on the cash balance of the trading account. You can invest or withdraw ‘swept’ funds just as you would if your funds weren’t tied to the sweep program.


Cash Sweep Alternatives at Robinhood


If you are looking for cash sweep alternatives at Robinhood, you won’t find many.

Robinhood is relatively simple in its approach to investment vehicles. There is access to U.S. exchange-listed stocks and ETFs, as well as options contracts for each asset class.


ETFs


Despite the relative lack of alternatives to the cash sweep program, there are some interesting ETFs that could serve the purpose.

It is important to note that bond ETFs do not always yield positive returns. Sometimes it makes more sense to ‘average into’ the broader market over time. To make the most of bond ETFs, awaiting appropriate market conditions is essential.

Here are some popular choices:

iShares BB Rated Corporate Bond ETF (HYBB)
ProShares High Yield Interest Rate Hedged ETF (HYHG)
Goldman Sachs Access Hi Yld Corp Bd ETF (GHYB)
SPDR Portfolio High Yield Bond ETF (SPHY)


Robinhood Cash Management


Another way to access the Cash Sweep features is to activate cash management.

Cash management comes with many features. You get access to a checking account, a debit card, free ATM access, and the cash sweep program.

Since cash sweep comes as a default feature of cash management, there would be no need to activate the program as a standalone feature.


Robinhood Promotion


Up to $200 in FREE stock + transfer fee reimbursement.

Open Robinhood Account

Updated on 10/5/2022.


Ben Wright
About the Author
Ben Wright is an investor, a trader, an educator, and something of an explorer. He spends his days in the markets when he is not teaching or spending time with his family. Ben writes about stockbrokers, markets, investment vehicles, promotional offers, and tools that help investors make the most of their time in the markets.