On-line brokerage Robinhood has introduced a waitlist for a soon-to-launch bank card that they declare will supply a flat 3% again on most purchases (and 5% again on purchases made by means of the Robinhood journey portal). I hesitated about whether or not to jot down a publish about this as a result of I’m considerably skeptical as as to if it’ll launch and the way lengthy it’ll final, however on this weekend’s podcast we referenced it in explaining why we’re not jazzed concerning the prospect of incomes 5 Hilton factors per greenback spent (extra on that instance within the publish under). I hope that this card works out, although I do have my skepticism.
The Deal
On-line brokerage Robinhood has introduced a brand new “Robinhood Gold Card” that may earn 3% money again on all purchases with no limits. The cardboard itself is predicted to be a comparatively heavy stainless-steel card. Extra card particulars are right here.
In an effort to get the cardboard, you’ll must subscribe to Robinhood Gold, which prices $6.99 per thirty days or $75 per 12 months.
Presently, you must be part of a waitlist to get an opportunity to use for the cardboard (it isn’t but publicly out there). Becoming a member of the waitlist doesn’t obligate you to use, it simply places you on the waitlist for a chance to use.
Robinhood is providing a referral promotion whereby you will get an precise 36c 10K Gold bank card or $1,100 with 10 referrals who join Robinhood Gold and pay not less than their first month-to-month or annual subscription charge. That is outlined in additional element within the publish under. See full phrases of the referral supply right here.
In the event you’re involved in signing up for Robinhood Gold to affix the waitlist, think about using considered one of our referral hyperlinks with our thanks (although learn on for extra data earlier than you do that):
Extra card particulars
The Robinhood Gold card is marketed to supply 3% again in all places (and 5% again on purchases through the Robinhood journey portal) each time it launches “quickly”.
In an effort to get on the waitlist for the cardboard, you must be a Robinhood Gold member, which prices $6.99 per thirty days or $75 per 12 months.
Robinhood Gold comes with some small advantages, like 5% APY on money held in your brokerage account and a 3% IRA match (although be aware that this requires holding the IRA with Robinhood for years). These advantages are in all probability price one thing to some folks, however you possibly can get 5% APY on money in your Webull brokerage account with out paying a month-to-month or annual membership charge, so until you’re making the most of the IRA match, I believe it is smart to consider the $75 per 12 months value of Robinhood Gold because the annual charge for the bank card.
I’ve some reservation in recommending this but for a variety of causes.
First, you must be part of Robinhood Gold to get on the waitlist for the cardboard. Which means both ponying up $75 now or $7 per thirty days for nonetheless lengthy it takes for the cardboard to truly launch.
Second, we’ve seen different playing cards supply 3% again for a restricted period of time, however none which have lasted long-term providing that return on all purchases. I’ve a tough time imagining that the three% will final ceaselessly.
Third, I think about this has all come about as a result of Robinhood purchased X1 final 12 months. The X1 card was actually intriguing for some time, however over time they hampered it sufficient that it grew to become under no circumstances fascinating. The truth that X1 didn’t preserve a place as a game-changer for lengthy makes me not assured that the Robinhood Gold card will both.
That stated, I usually say that you must strike whereas the iron is sizzling. The possibility to earn 3% again in all places with no cap for nonetheless lengthy it lasts will in all probability be intriguing sufficient for some.
On the podcast this weekend, I famous that with a card like this available on the market, I might have a tough time paying $195 for the newly-structured Hilton Enterprise bank card. That Hilton Enterprise card provides 5x Hilton factors in all places now on as much as $100K in purchases per 12 months.
Nonetheless, Hilton is nearly all the time providing their factors on sale for 0.5c per level. Subsequently, should you earned 3% again together with your Robinhood card, each greenback you spend would earn 3 cents. You possibly can in flip use your 3 cents to purchase six Hilton factors at a worth of half a cent per level — eclipsing the earn on the Hilton card for a far decrease annual charge (notably should you worth different Robinhood Gold advantages). For the sake of completeness, we additionally talked about utilizing a Financial institution of America card, like maybe the Limitless Money Rewards card, which might earn 2.625% again with no annual charge you probably have Platinum Honors standing with Financial institution of America.
Get a strong gold card with 10 referrals (possibly…..)
Robinhood is attempting to construct curiosity within the card by providing a strong gold card (36g of 10K gold) price $1100 (or an precise $1100 in money as a substitute) for the primary 5,000 prospects who every refer 10 folks to join Robinhood Gold. I’ve to confess that I noticed that and instantly imagined how cool it could be to have an precise strong gold card to plunk down on a tabletop when paying for one thing. It’s fully impractical (What would you do with it as soon as it inevitably expires? Is somebody actually going to pay you notice worth for that and soften it down? It could be a really enjoyable novelty for positive, however not extremely sensible). If in case you have ten associates who’re every keen to throw down $7 to affix Robinhood Gold, the return on spend there might be price it. And the three% again card actually could also be a sensible choice for lots of people. Nonetheless, the referral promotion is form of affected by potential points.
To start with, it’s scheduled to finish as quickly as 5,000 folks hit the goal of 10 referrals — which implies that if you’re at 9 referrals on the day that the 5,000th particular person has scored 10 referrals, you’re not going to get something in any respect. (By the identical token, you gained’t get a second gold card or fee should you get 20 referrals, and so forth).
Second of all, the particular person you refer should make not less than their first month-to-month or annual fee for Robinhood Gold service and be part of the Robinhood Gold Card waitlist. There is no such thing as a requirement that you simply or they apply for the bank card. Your referees simply want to affix Robinhood Gold (they have to be a brand new Robinhood Gold buyer) and be part of the waitlist for a chance to use for the cardboard and pay not less than their first $7 month-to-month cost for Robinhood Gold. On the one hand, that could be a low bar — discovering ten individuals who can throw down $7 every and be part of a waitlist in all probability isn’t awfully powerful. Alternatively, you’re relying on the folks you discuss with take two steps (or actually three): create a Robinhood brokerage account (in the event that they don’t have already got one), pay $7 for Robinhood Gold, and be part of the waitlist. That is perhaps too many steps for extra casually-interested people.
Word that I believe you’ll solely get the strong gold card you probably have a Robinhood Gold card account open on the time while you hit 10 referrals. That stated, I’ve to think about that some folks could hit 10 referrals earlier than they even have a chance to use for the cardboard. In accordance with the total phrases, you’ll obtain a money equal of $1,100 should you don’t have an open Gold card account on the time while you attain 10 referrals.
Apparently, Robinhood will notify you through electronic mail as you get referrals. I don’t but know what that appears like.
Backside line
Robinhood’s new 3% again in all places card actually sounds intriguing. And at what you possibly can successfully think about is a $75 annual charge, getting 3% again on all purchases actually might be fascinating. I’m undecided that I’ve excessive religion that this may final for lengthy, but it surely is perhaps price making the most of it for so long as it does make sense. All that stated, there isn’t any welcome bonus for brand spanking new candidates and the “referral bonus” is a one-time deal that you simply solely get should you obtain not less than 10 referrals (with no bonus for fewer than 10 and no incremental bonus for greater than 10). That every one mixes for a questionable worth proposition for potential prospects. That stated, at $7 to join Robinhood Gold and be part of the waitlist to see if it goes wherever, some will discover it worthwhile.
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