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Is Robinhood FDIC and SIPC Insured?
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Is Robinhood SIPC and FDIC Insured?
Points to Know:
• Robinhood customers can have both SIPC and FDIC protection.
• The insurance that applies at Robinhood depends on the account type and where the cash is held.
• Robinhood’s brokerage cash sweep can provide up to $2.5 million for individual investing accounts and up to $5 million for joint investing accounts.
SIPC Insurance at Robinhood
Like most brokerage firms, Robinhood belongs to the Securities Investor Protection Corporation (SIPC). That protection applies to securities accounts. Assets held through Robinhood Derivatives or Robinhood Crypto do not receive SIPC coverage. Securities include investments such as stocks, options, and funds.
Securities and cash at Robinhood are protected by SIPC up to $500,000, including up to $250,000 for cash, for each account type. Robinhood explains that accounts in the same type are combined for SIPC purposes, while examples of different account types include individual investing accounts, joint investing accounts, Traditional IRAs, and Roth IRAs.
Robinhood also offers managed accounts through Robinhood Strategies in addition to its regular brokerage accounts. As with other investment accounts, the protection framework depends on whether assets are being held as securities and brokerage cash or have already been swept to partner banks.
It’s important to understand that SIPC protection covers customer securities and cash in the event of broker-dealer failure; it does not insure against market losses.
If standard SIPC protection were ever exhausted, Robinhood also carries excess SIPC coverage through Lloyd's of London. Like regular SIPC coverage, this extra policy protects securities and cash, not investment losses from market decline. The policy has an aggregate limit of $1 billion, with coverage of up to $50 million in securities per customer, including up to $1.9 million in uninvested cash.
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FDIC Insurance at Robinhood for Spending Accounts
A Robinhood spending account may qualify for FDIC pass-through insurance. Cash in a Robinhood spending account that is held at or transferred to JPMorgan Chase Bank, N.A. is insured by the FDIC up to $250,000. The Robinhood Cash Card account through Sutton Bank can also be eligible for FDIC insurance up to $250,000, subject to program conditions.
An important update here: Robinhood has been shutting down spending accounts and Cash Cards through scheduled closures, and these products are no longer supported for new use.
FDIC Insurance for Robinhood Banking
Robinhood Banking is Robinhood’s newer banking platform. Robinhood says banking services are provided by Coastal Community Bank, Member FDIC, and the product includes features such as checking, savings, and debit card access for eligible users.
Deposits in Robinhood Banking checking and savings accounts can receive FDIC insurance up to $2.5 million through partner banks, according to Robinhood’s Banking FAQ.
Besides Coastal Community Bank, Robinhood uses these banks in its FDIC sweep:
- Fifth Third Bank
- KeyBank
- Morgan Stanley Bank
- Citibank
- Truist Bank
- Plus several more...
Keep in mind that money deposited into Robinhood Banking is not eligible for SIPC protection. In addition, FDIC coverage in the program applies only to covered cash deposits; it does not protect non-deposit services available through Robinhood Banking, such as estate planning or tax advice.
FDIC Insurance at Robinhood for Brokerage Accounts
Normally, brokerage and investment-advisory accounts do not receive FDIC insurance on securities or investments. But Robinhood brokerage customers who opt in to the brokerage cash sweep program can have eligible uninvested cash automatically deposited at program banks, where it becomes eligible for FDIC coverage. Cash that remains in the brokerage account before it is swept is covered by SIPC instead.
Robinhood’s brokerage cash sweep can provide up to $2.5 million in FDIC insurance for individual investing accounts and up to $5 million for joint investing accounts. Robinhood also notes that opting out of one or more program banks can reduce the total amount of FDIC coverage available.
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3% deposit match and FREE stock worth up to $200 at Robinhood.
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Broker Review
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Updated on 3/27/2026.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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