MENLO PARK, Calif.—Zero-fee stock-trading app Robinhood is launching Cash Management, a new feature that earns users 2.05% APY interest on uninvested money in the account with the ability to spend it through a special Mastercard debit card.
It will offer a network of 75,000 ATMs. Each user's funds will be covered by the FDIC up to $1.25 million, Tech Crunch said.
Robinhood earns money by taking a chunk of the interchange fees from transactions on its debit card run in partnership with Sutton Bank, and from a fee paid by banks, Tech Crunch said