Stock-trading unicorn Robinhood is reviving its checking solution and this time it has insurance to cover it.
That was not the case when it announced the first iteration of the solution in December last year. Back then, Robinhood Checking was supposed to be insured by the Securities Investor Protection Corporation. However, the institution had never agreed to insure users’ funds. As a result, it declared Robinhood’s solution ineligible and the company was forced to roll back the service and delete every mention of it on its website.
But now its back and the unicorn kicked off the announcement with a mea culpa, stating that it “made mistakes with that announcement, which led us to hit the reset button and start over from scratch.”
The new version is named Cash Management and provides more flexibility for users in how they use their money, enabling them to invest, spend and earn interest. And yes, this time the unicorn has been able to insure the money through the Federal Deposit Insurance Corporation.
Uninvested money will now be moved to banks that pay the users a 2.05% annual percentage yield. Interest will also be paid monthly on the uninvested money.
The Cash Management also comes complete with a customized debit card, enabling customers to tap into their brokerage account anywhere and to use it at more than 75,000 ATMs. Customers can pick card that are either green, black, white or painted as the American flag.
Robinhood increased its valuation this summer to $7.6bn after it raised a $323m Series E round.
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