Fintech investing platform Robinhood has introduced new checking and savings products that earn 3 percent, much more than what traditional banks offer and higher than online banks. Robinhood charges no fees and requires no minimum balance.
But there’s an important distinction: Robinhood’s checking and savings features are not traditional bank accounts. They are simply separate balances held within a Robinhood brokerage account. That means your funds are not FDIC-insurance, but instead protected by insurance from the Securities Investor Protection Corporation, or SIPC.
Here’s what you should know about the FDIC and SIPC.