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 Sam Pennington on March 26, 2023
FTC Disclosure

Does Robinhood Pay Interest Monthly?

Robinhood, the popular commission-free trading app, allows users to earn interest on their uninvested cash.

However, unlike traditional banks, Robinhood does not pay interest directly to its customers.

Instead, it moves the uninvested cash into a network of FDIC-insured program banks that hold and invest the cash on behalf of customers.

The program banks then pay interest on the deposits, minus any fees paid to Robinhood, and the customers receive the interest as part of the brokerage cash sweep program.

How To Earn Interest On Robinhood

To start earning interest, users need to sign up for the brokerage cash sweep program.

To do so, go to the account section on the app, select menu, choose investing, scroll down, and select enable cash sweep. Follow the prompts to complete the sign-up process. Once signed up, users will start earning interest on their uninvested cash.

Daily Accrual, Monthly Payout

Interest on uninvested cash is accrued daily based on the end-of-day balance at the program banks.

The interest rate is derived from the annual percentage yield (APY) of 1.5% or 4.4% for Robinhood Gold members.

Robinhood customers are not paid interest daily but receive their interest once a month on the last business day of the month, which includes interest through the end of the month.

In summary, Robinhood doesn't pay interest directly to its customers, but it offers a brokerage cash sweep program that allows users to earn interest on their uninvested cash.

Interest is accrued daily based on the end-of-day balance and paid monthly on the last business day of the month.

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

Article written by Sam Pennington
Sam is a personal finance writer. While in college, he dedicated his spare time to learning about personal finance, investing, and real estate. Sam currently works as a business analyst for one of the top food manufacturers in the world.

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