Robinhood Launches Banking Services

Fintech startup Robinhood Financial LLC today announced that customers can sign up for access to a Checking & Savings product, which will be available as part of their free-trades brokerage services. The company makes money primarily from interest on customer cash balances.
Upon logging in to the app, customers are now greeted with an invitation to apply for the banking capabilities. The accounts pay a 3% annual interest rate, which is certainly a loss leader at the present time, and there are no fees for the customer.
Robinhood says it can offer the high rate of interest due to splitting the revenue it receives from MasterCard whenever a debit card is used.

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