Investing Simple Logo
Menu
Get 1 Free Stock Worth Up To $200 From Robinhood!
Sign up with Robinhood, deposit any amount and get 1 Free Stock. It takes less than 3 minutes to sign up and claim your Free Stock Bonus.
Earn 5.00% APY with M1 High-Yield Savings Account
M1 Plus members can earn 5.00% APY on their deposits with no minimum balance required.
Webull free stock promotion
Get Up To 5 Free Stocks From Webull
Open a new Webull brokerage account today and deposit any amount of money to receive 5 free stocks. Webull offers commission free stock, ETF, option and crypto trading.
Written by J. Thomas on March 1, 2023
Category: 
FTC Disclosure: Some of the links on this site are affiliate links. Read our full disclaimer here.

Updated Robinhood APY On Uninvested Cash In 2023

Robinhood is a financial services company that offers investment tools and services to its users.

One of the services provided by the company is a brokerage cash sweep program that enables users to earn interest on their uninvested cash that is swept to banks in the Robinhood network.

This article will answer some common questions about the current APY for Robinhood, including how to sign up, how you can earn interest, how a rate change can affect your interest, and other pertinent information.

Interest Earned On Uninvested Cash

Users do not earn interest directly from Robinhood.

Instead, the company sweeps their uninvested cash into its network of FDIC insured program banks that hold and invest their money.

This enables users to earn interest on their uninvested brokerage cash swept to the banks in the network.

How Does Cash Sweep Work?

Users can find their swept cash balance under “Brokerage cash sweep program” in the Investing section of Settings in the app.

The swept cash balance is any available cash that users have in their brokerage account that they have not yet invested or spent.

Customers with a margin debit balance would not earn interest through the cash sweep program because a cash balance is needed.

Additionally, if a user has been flagged as a pattern day trader (PDT), they can still sign up for the brokerage cash sweep program, but they won't be eligible to earn interest until their PDT flag is removed.

There is no minimum or maximum amount that users can earn interest on.

Users will start earning interest on their first cent swept. However, cash deposited to these banks will only be covered by FDIC insurance up to a total maximum of $1.5 million, up to $250,000 per program bank, inclusive of deposits they may already hold at the bank in the same ownership capacity.

Interest is accrued daily based on the end of day balance at the program banks. The balance is multiplied by the daily interest rate.

Users are paid interest by the program banks monthly, and they can keep track of how much interest they’ve earned in the Investing section of Settings in the app.

How To Sign Up For Cash Sweep

To sign up for the brokerage cash sweep program, follow these steps:

  1. Click on the Account (person icon) in the Robinhood app.
  2. Select Menu (three bars) and click on Investing.
  3. Scroll down and select Enable cash sweep.
  4. Follow the prompts to complete sign up.

Current APY Rates

  • As of August 11, 2022, the brokerage cash sweep annual percentage yield (APY) is 1.5%.
  • For Robinhood Gold members, the APY is 4.15% as of February 3, 2023.

Rates Subject To Change

The APY is subject to change and is affected by the Federal Reserve Bank and market conditions.

The Fed uses various tools to meet its goals, and interest-rate changes often get the most attention because they directly impact how much interest users can earn and how much it costs to borrow.

A rate change of 1% means that for every $1,000 held at the program banks for a year, users would earn a difference of $10 in annual interest.

In conclusion, the brokerage cash sweep program offered by Robinhood is a way for users to earn interest on their uninvested cash.

Don't forget to grab your free stock worth up to $200 from Robinhood today!

Article written by J. Thomas
JT graduated with a degree in Personal Finance from a Big Ten university. Since then he has worked as a Financial Planner with a nationally recognized RIA. In his free time, he enjoys playing basketball, spending time outdoors, and traveling abroad.

Read more

Power Your Investing

Choosing the right product and service is essential for your investing. Here are some of the tools and services to help your portfolio grow.
Robinhood
Robinhood provides an easy-to-use free trading platform for beginner investors. Robinhood has $0 account minimums. Get a free stock when you open an account below.
Try Robinhood
M1 Finance
M1 Finance offers a free investing platform where users can build portfolios of stocks and ETFs. Users can also choose from a variety of pre-built portfolios offered for free.
Try M1 Finance
Fundrise
Passively invest in private real estate deals with as little as $10. Fundrise allows you to own residential and commercial real estate across the U.S. starting at a 1% annual fee.
Try Fundrise
Copyright © 2018 – 2023 Investing Simple LLC. All Rights Reserved.
Investing Simple is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that investment markets have inherent risks, and past performance does not assure future results. Investing Simple has advertising relationships with some of the offers listed on this website. The information on Investing Simple could be different from what you find when visiting a third-party website. All products are presented without warranty. For more information, please read our full disclaimer.
Website managed by Stallion Cognitive™
magnifiermenuchevron-downcross-circlechevron-down-circle

Get 1 Free Stock Worth Up To $200 From Robinhood!

Don't Miss This Opportunity!

Investing Simple readers can claim a free stock from Robinhood worth up to $200 when they open a brokerage account and deposit any amount.

For US Residents only. Investing Simple is affiliated with Robinhood, and we may earn a commission when you sign up for Robinhood.

18749
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram