Investing Simple Logo
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.
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 Cho Evelína on February 20, 2023
FTC Disclosure

Robinhood Brokerage Cash Sweep Program Explained In 2023

Robinhood is a popular brokerage firm that offers a cash sweep program known as the IntraFiNetwork Deposit (IND) Sweep Service.

This program automatically moves uninvested cash in brokerage accounts to a network of program banks to earn interest and be eligible for FDIC insurance.

Uninvested cash is still covered through SIPC with Robinhood, though.

Robinhood Program Banks

Currently, there are six program banks that participate in Robinhood's brokerage cash sweep program:

  1. Goldman Sachs Bank USA
  2. HSBC Bank USA, N.A.
  3. Wells Fargo Bank, N.A.
  4. Citibank, N.A.
  5. Bank of Baroda
  6. U.S. Bank, N.A.

Cash deposited to these banks is eligible for FDIC insurance up to a maximum of $1.5 million, with each bank having an insurance coverage limit of $250,000 (inclusive of deposits you may already hold at the bank in the same ownership capacity).

Balances Under $250,000

If a customer's cash balance is less than $250,000, the entire amount will be swept into the first program bank on the list.

Balances Over $250,000

However, if the cash balance is greater than $250,000, Robinhood will sweep the excess funds to the other linked program banks in addition to the first.

It is the customer's responsibility to monitor the amount of their deposits with each program bank to ensure that the total amount does not exceed the FDIC insurance coverage limit.

If a customer already has deposits at a program bank that, when combined with the cash swept to that bank through the brokerage cash sweep, take their cash at that bank over $250,000, they can contact Robinhood Support to exclude that bank from their sweep options.

How To Access Your Cash

Customers still have access to their cash that has been swept to the program banks and can withdraw, spend, or invest it through their brokerage account.

Interest is paid by the program banks monthly, and customers can keep track of how much interest they've earned in the Investing section of the Settings in the app.

It's important to note that Robinhood may change the network of program banks at any time, and customers can opt out of any program banks at any time by contacting support.

For more information, customers can refer to the IND Disclosures provided by Robinhood.

This article was generated using automation technology, and thoroughly edited and fact-checked by an editor on our editorial staff.

Article written by Cho Evelína

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 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
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™

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.

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