What!? Robin Hood is giving 3% APY on it's checking and savings accounts with no
fees man have we got some stuff to talk about today. Stay tuned.
What's up guys? Welcome back to the Jeremy Kersten show where every episode we show you
something different on business, entrepreneurship, investing, and personal
growth. If you're new to the channel go ahead and hit that subscribe button and
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a new video. Today we're talking about the investing app Robin Hood and how
yesterday Thursday December 13th they introduced their new no fee 3% APY which
is annual percentage yield checking and savings account through their app. Now I
don't know the last time you looked at your APY, you know interest rate at
your bank but trust me it's probably .01, .02, maybe if
you're lucky .03 meaning that Robin Hood's new APY is thirty
times the national average. This is huge! This is going to throw banks for a
whirlwind. They are gonna have to find a way to compete. This is what we call a
disruption in the industry. We've been waiting a little while for the
financials, for the banks, you know, to do something a little bit more incentive
for us to put our money in because for the past couple of years, almost decade
or more, it's been pretty low and there's really been no financial incentive to
put your money in there. In fact, it's been pretty much you've had a
disadvantage in keeping your money in a savings account because the rate of
inflation is outpacing the rate of savings or interest that you're gaining
even in a regular checking money market account. Now that Robinhood is giving
three percent APY this changes everything.
Finally there's an incentive to actually save and put some money in the bank and
finally banks national banks are gonna have to do something to compete. Now I
don't know why you wouldn't want to put money in there. This is a no-brainer
You're gonna be getting thirty percent (actually 30X) more on your money than you would at
your regular bank. I don't care if that's Wells
Fargo, Bank of America, Chase, you name it, even the smaller cuttings are nowhere
near 3% APY. If you don't know about Robin Hood already they've been an app
primarily focused on selling individual stocks, equities, and also stock options
to the user and that's already been a game changer in and of itself because
traditionally for you to go by these single stocks you'd have to contact
broker set up account kind of took a while and then there were fees on top of
it all kinds of fees but Robinhood you could buy a single stock with no fees at
all and we'll go into that entire app on a whole nother video but today I
just wanted to share with you the unbelievable news that Robinhood is
doing 3% APY on its checking and savings account. There is no minimum amount of
money to start your account and there's also no fees associated with it.
Now they're gonna be issuing you a debit card through MasterCard. That's been the
chosen partner I suppose or the partner that's agreed to this
instead of Visa so that does bring up a little bit of a problem because from
what I understand MasterCard is not exactly accepted as many places as Visa
but I'm sure that yeah it'll be alright. Another key difference to pay attention
to or just know I guess for peace of mind is that instead of the money in
your account being insured by the FDIC like it is traditionally in bank
accounts up to two hundred and fifty thousand your money is going to be
insured by the SIPC which is a type of insurance that insures brokerage
accounts because that's what Robinhood is. Robinhood is not a bank per se, it is
a brokerage account but either way the money's there, it's easily accessible to
your debit card that you'll get. I don't know about you but I'm gonna be
switching over my money as soon as possible. Like I said there's no reason
not to. So keep your ears and eyes open for the next couple of months you're
gonna be hearing a lot about this and you're gonna be seeing a lot of
competition coming from the banks that you already used because they've got to
do something if they think that they're gonna be able to keep millions of users
from switching over to get 30 times more money you know by keeping their money
with those banks. Well thank you for watching guys this was another short
video. I just wanted to bring that to your attention.
Hopefully it brought some value to you. Tell me what you think in the comments
below. Are you gonna be putting your money over into Robinhood app? if so, let
me know. I'll put a link down in the description below. Leave a comment also
about just what you thought of the video. If you haven't already subscribed, go
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with a friend, give it a good thumbs up, and until next time, guys, take care.