Robinhood Cash Card Review 2024 (2024)

The Robinhood Cash Card is a debit card that incentivizes customers to invest extra money in their Robinhood brokerage account. Cardholders can enroll in Round-up Rewards to have Robinhood round up their transactions to the nearest dollar and transfer the spare change to a linked brokerage account. While you do not need a Robinhood brokerage account to hold this card, you must have a Robinhood brokerage or cryptocurrency account to qualify for Round-up Rewards.

Cardholders can then use the spare change to buy shares of ETFs, stocks, crypto and more. There is a $100 weekly round-up limit. Only transactions that cost more than $1 will be eligible for round-ups.

Robinhood will reward customers who sign up for Round-up Rewards by applying an extra bonus to their account, worth between 10% and 100% of the weekly round-up total. There is a $10 total weekly bonus limit. Robinhood says the typical bonus is 40%. The bonus can then be invested via your Robinhood brokerage account.

Cardholders can earn up to 2% cash back on eligible gas and grocery payments when they set up a direct deposit of at least $300 a month into their spending account.

Cardholders can also earn cash back with the card when shopping at specific merchants. These cash-back offers will be activated automatically. Common offers include:

• Nike: 6% cash back
• Wayfair: 6% cash back
• Kohl’s: 6% cash back
• Chevron: 1% cash back

Cardholders can choose between a virtual or physical debit card. The virtual card can be added to a Google Wallet, Samsung Pay or Apple Pay account.

The Robinhood Cash Card functions like a rewards debit card, and it’s funded by the Robinhood Spending account, which replaced the brokerage’s previous cash management account.

The Robinhood Spending account doesn’t earn interest. However, the Cash Card makes investing easy by letting you automatically transfer your rewards to a linked brokerage account. You can also opt to automatically invest a portion of your paycheck.

Money in the Robinhood Spending account is insured by the Federal Deposit Insurance Corporation (FDIC). This only applies to money in your Spending account and not your Robinhood brokerage account—unless you’ve opted into brokerage cash sweep, in which case, uninvested cash in your brokerage account is also eligible for FDIC insurance up to the maximum.

Payments, Withdrawals and Deposits

The Robinhood Cash Card is accepted by most retailers that accept Mastercard. However, if you travel abroad, know that you cannot use the Robinhood Cash Card in more than 80 countries, including popular destinations like Brazil, Belize, the Czech Republic and Thailand. Before taking the card on vacation, make sure to review the list to see if your card will be accepted.

The Robinhood Cash Card has a daily spending limit of $3,000 and a monthly spending limit of $10,000. There is an ATM withdrawal limit of $510 per day and $5,000 per month. Customers have access to a vast fee-free ATM network with more than 75,000 ATMs in the U.S. and 15,000 ATMs overseas.

You can fund your account via debit card, direct deposit or an ACH transfer from a linked bank account. Customers cannot deposit cash or checks with the Robinhood Cash Card. If you need to deposit cash or checks regularly, you should have another debit card or bank account that accepts cash and check deposits.

You can apply online for a Robinhood Cash Card, but you’ll need to be a Robinhood customer to do so. If you don’t have a Robinhood account, you’ll need to download the Robinhood app or visit the company’s website and create one. After that, you’ll sign up for a Robinhood spending account—you can do this in the app under the “Spending” tab.

Your spending account comes with a Robinhood Cash Card, and you can opt for a virtual card during the application process or a physical one, which will arrive by mail. You can get started right away by activating your Robinhood Cash Card in the app and funding your account with a debit card or money from a linked checking account.

The Robinhood Cash Card is a unique product. While it doesn’t offer cash back on all purchases like some traditional cash-back debit cards, its round-up rewards program can help you boost your investment account balance. Here’s how the card compares to similar products.

Acorns Visa Debit Card vs. Robinhood Cash Card

The Acorns Visa debit card is offered by robo-advisor Acorns and is similar to the Robinhood Cash Card. If you open a checking account with Acorns, you can round up your transactions and invest the difference. Unlike Robinhood, Acorns will not offer an extra bonus on round-up transactions.

The Acorns checking account has no monthly maintenance fees and no minimum balance requirements. Customers have access to more than 55,000 fee-free ATMs. Acorns will process direct deposits up to two days early, just like Robinhood.

Fidelity® Rewards Visa Signature® Credit Card* vs. Robinhood Cash Card

The Fidelity® Rewards Visa Signature® Credit Card* isn’t a debit card, but it’s one of the best options for consumers who want rewards they can apply to the stock market.

The credit card offers 2% cash back on every eligible net purchase, and you can deposit the cash back in an eligible Fidelity account, including a Roth or traditional individual retirement account (IRA).

The biggest difference between this card and the Robinhood Cash Card is that this is a credit card, so you can incur hefty interest charges if you don’t pay off your balance in full each month. However, an IRA comes with many tax benefits that brokerage accounts lack, so it might be a better option if you’re saving for retirement and have yet to max out your IRA.

Bottom Line

If you already have a brokerage account through Robinhood, adding the Robinhood Cash Card can help you increase your nest egg through your everyday spending. The card has its limitations, but it also comes with generous rewards for a debit card with no extra fees.