Robinhood Wants to Be Your Bank Too With New High-Yield Checking

Robinhood is expanding beyond stock trading with a new high-yield checking account, part of a broader effort to become what the company calls a financial super app.

The company recently emailed customers announcing that Robinhood Banking now offers 3.50% APY on both checking and savings accounts, allowing paychecks to begin earning interest as soon as they settle. The accounts also include up to $2.5 million in FDIC insurance, access to more than 75,000 fee-free ATMs, and instant transfers to Robinhood brokerage accounts.

Speaking in a recent interview, Robinhood Chief Technology Officer Shiv Verma said the company's vision is to become the place where customers can manage every aspect of their financial lives.

"Anything you want to do for your financial lives, Robinhood should be able to do that for you," Verma said.

That vision extends well beyond commission-free stock trading. Robinhood now offers checking and savings accounts, credit cards, retirement accounts, a crypto wallet, prediction markets, and Trump Accounts designed to help children begin investing.

Robinhood's customer base has also matured. According to Verma, the company's median customer is now 35 years old, compared with 27 or 28 when he joined eight years ago. As those customers have gotten older and accumulated more wealth, many have expanded beyond investing into retirement accounts, Robinhood Gold, credit cards, and now banking products.

Verma said the company continues to take market share from traditional financial institutions while also attracting first-time investors. About half of Robinhood's brokerage customers are new to investing, while the other half are switching from other firms.

Robinhood's latest banking push signals that the company is aiming to compete with more than online brokerages. It wants customers to think of the app as a single destination for everyday banking, investing, and managing their finances.