What's a Robinhood spending account? | Robinhood (2024)

FAQs

What's a Robinhood spending account? | Robinhood? ›

The Robinhood spending account is an account that lets you spend, pay and request money from friends, opt into round-ups, and get paid early. You can also get a Robinhood Cash Card issued by Sutton Bank. You can use your Robinhood Cash Card and routing and account numbers to buy groceries, pay bills, and more.

If you move to an unlicensed state, your Robinhood spending account and Robinhood Cash Card will be closed within 30 days of your residential address change.

Unfortunately, we can't accept debit cards that function as checking accounts. You'll know it's a valid checking account if it provides monthly statements addressed to you, the account holder. Make sure you have sufficient funds in your account to prevent a bank overdraft fee.

If for any reason we can't sell your contract, and you don't have the necessary buying power or shares to exercise it, we may attempt to submit a DNE request to the Options Clearing Corporation (OCC), and your contract should expire worthless.

After confirming your profile information and tax status with us, you can request to reactivate your Robinhood account directly within the app or on the web: Select Account → in the app, Menu (3 bars) Select Reactivate account. If you're eligible, you'll be prompted to submit this reactivation request.

The Robinhood spending account is an account that lets you spend, pay and request money from friends, opt into round-ups, and get paid early. You can also get a Robinhood Cash Card issued by Sutton Bank. You can use your Robinhood Cash Card and routing and account numbers to buy groceries, pay bills, and more.

Settlement period

Following a sale in your investing or retirement account for equities or options, the transaction usually needs to settle before you can withdraw the proceeds to your bank account.

Robinhood imposes withdrawal limits based on your account type. Standard accounts have a $50,000 per business day limit, while Robinhood Gold accounts can withdraw up to $1 million per business day.

Our Instant Deposit feature can give you immediate access to trade with up to $1,000 when you initiate a deposit.

Is the Robinhood gold card worth it? ›

For heavy spenders and people who plan on using all of the membership's benefits, the $5 monthly fee for Robinhood Gold is worth it when you factor in its high earning power and benefits. The Robinhood Gold Card is available through waitlist only.

If you're already a Robinhood user (especially if you have a Robinhood Gold account) this card may offer some major savings. After all, the minimum 3% cash back is more than other flat cash-back credit cards available today with a max of 1.5% or 2% on every purchase. But there are potential limitations.

An option contract, in contrast to stock, has an end date. It will lose much of its value if you can't buy, sell, or exercise your option before its expiration date. An option contract ceases trading at its expiration and is either exercised or worthless.

Perhaps the biggest shortcoming of Robinhood is the fact that it does not offer a simulated trading account of any kind. This would be especially helpful for option traders as an educational resource, but despite the fact that competitors have done so, Robinhood is still without this feature.

Non-recourse financing

If you don't have enough money to self-fund the exercise of your stock options and loans are too risky, your next best option could be non-recourse financing. Non-recourse financing is a cash advance that covers the cost of exercising plus any tax burden that exercising incurs.

If Robinhood discontinues your Account or any services related to your Account, you agree that Robinhood is authorized to (i) liquidate any Property in your Account and send you any net proceeds (after satisfying any Obligations), and (ii) close your Account.

Banks may close your account if you have a negative balance and show no signs of making a deposit to rectify it. Excess overdrafts. Overdrafts occur when debit transactions exceed your available balance, leaving you with a negative balance.

Your Robinhood investing account might be restricted for a number of reasons, including the following: Company control person. Bank transfer reversals. Incorrect or outdated account information.

To verify in the app whether you're restricted from day trading or not on any given day, check your Day trade counter.