Is Robinhood FDIC Insured? A Comprehensive Guide

If you’re a Robinhood user or considering opening an account with them, you may be wondering about the safety of your funds. In this article, we’ll dive deep into the question of whether Robinhood is FDIC insured and how your money is protected.

Understanding FDIC Insurance

The Federal Deposit Insurance Corporation (FDIC) is a government agency that provides deposit insurance to protect customers’ funds in case a bank fails. When a bank is FDIC insured, the FDIC guarantees that depositors will get their money back, up to a certain limit, should the bank go out of business or become insolvent.

Currently, the FDIC insures deposits up to $250,000 per depositor, per insured bank, for each account ownership category. This means that if you have multiple accounts at the same bank, such as a checking account and a savings account, the combined balance of those accounts is insured up to $250,000.

Is Robinhood FDIC Insured?

Robinhood is not a bank, and therefore, it does not directly provide FDIC insurance. However, Robinhood offers a cash management account that uses a deposit sweep program to provide FDIC insurance coverage for your funds.

How the Deposit Sweep Program Works

When you deposit cash into your Robinhood cash management account, the funds are automatically “swept” into one or more program banks that are FDIC insured. These program banks are as follows:

  • Goldman Sachs Bank USA
  • HSBC Bank USA, N.A.
  • Wells Fargo Bank, N.A.
  • Citibank, N.A.
  • Bank of Baroda
  • U.S. Bank, N.A.

Each of these program banks provides FDIC insurance coverage up to $250,000 per depositor. By spreading your deposits across multiple program banks, Robinhood’s deposit sweep program ensures that your funds are eligible for FDIC insurance coverage up to a maximum of $2.25 million.

It’s important to note that Robinhood does not monitor your existing deposit totals at each partner bank. If you already have deposits at one of the program banks, your combined balance (including the funds swept from Robinhood) could exceed the $250,000 limit at that particular bank. To ensure that all your funds are fully FDIC insured, it’s crucial to keep track of your total deposits across all banks.

Additional Protections

In addition to the FDIC insurance coverage provided through the deposit sweep program, Robinhood cash management accounts are also protected by the Securities Investor Protection Corporation (SIPC) until the funds are swept into the partner banks.

The SIPC protects customers of SIPC members (like Robinhood) against the loss of cash and securities held by the member, up to $500,000 in cash and securities per customer, with a $250,000 limit for cash claims.

Advantages of Robinhood’s Cash Management Account

While Robinhood’s cash management account may not provide direct FDIC insurance like a traditional bank account, it offers several advantages:

  1. Competitive Interest Rates: Robinhood’s cash management account typically offers competitive interest rates on your cash balance, similar to high-yield savings accounts offered by online banks.

  2. No Account Minimums or Fees: There are no account minimums or monthly maintenance fees associated with the Robinhood cash management account.

  3. Debit Card and ATM Access: You can receive a complimentary debit card and access to a large network of ATMs for withdrawals and deposits (although Robinhood charges a $2.50 fee for ATM withdrawals unless you meet certain criteria).

  4. Integrated with Brokerage Account: If you already have a Robinhood brokerage account, the cash management account is seamlessly integrated, allowing for easy transfers between your investment and cash accounts.

Ensuring Your Funds Are Fully Insured

While Robinhood’s deposit sweep program provides substantial FDIC insurance coverage, it’s essential to monitor your total deposits across all banks to ensure that your funds are fully insured. Here are some tips to help you stay on top of your FDIC coverage:

  • Keep track of your existing deposits at each of Robinhood’s partner banks.
  • Consider spreading your funds across multiple banks if your total deposits exceed the $250,000 limit at any one bank.
  • Regularly review your account statements and balances to ensure that your funds are appropriately distributed across the partner banks.
  • If you have concerns about your FDIC coverage, don’t hesitate to reach out to Robinhood’s customer support for clarification.


However, it’s crucial to monitor your total deposits across all banks to ensure that your funds are fully insured within the FDIC limits. By understanding how Robinhood’s cash management account works and taking the necessary steps to protect your deposits, you can enjoy the benefits of this account while maintaining the safety of your funds.

Is Robinhood SIPC And FDIC Insured?


Is my money safe in Robinhood account?

Your securities and cash are protected by SIPC Robinhood Financial LLC and Robinhood Securities, LLC are both members of SIPC, which protects securities for customers of its members up to $500,000 (including $250,000 for claims for cash).

Is Robinhood FDIC approved?

Is my money insured? Cash in your Robinhood spending account is eligible for FDIC insurance coverage of up to a total maximum of $250,000.

Is Robinhood debit card FDIC insured?

The Robinhood Cash Card is issued by Sutton Bank, member FDIC, pursuant to license by Mastercard®.

Is Robinhood going to survive?

Today, though, Robinhood is still standing. In a new Wall Street Journal profile, Tenev says the company is done with distractions and is focused again on building for the long term. This includes retirement accounts and a credit card business, which will make it less dependent on the highly volatile trading markets.

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