Robinhood Launches New Debit Card With Innovative Features
On Tuesday, Robinhood Markets launched a new debit card that allows users to invest spare change amid a move to expand beyond trading into more consumer finance verticals.
According to Robinhood, users of its new card, which will be offered by a new subsidiary of the company, Robinhood Money, can round up their change to the nearest dollar and invest this sum in assets of their choice. Robinhood will also reward users of this new feature with a weekly bonus, the company has said.
Other consumer finance apps, such as Chime, already allow spare change investing. This is a feature proven to be popular with younger consumers in particular.
The new card will allow users separate accounts for investing and spending and will come to replace Robinhood’s existing cash management product. Customers will have the option to receive cheques up to two days in advance via direct deposit. If users wish to do so, they can also choose to automatically invest a portion of their cheques.
Robinhood has said that these new features will all be offered to users free of charge.