UPDATE: Robinhood backs down on its checking and savings account promise

A day after announcing its new dreamy checking and savings account program, the mobile stock trading app walked back its plan after running into legal trouble

That was quick. Turns out Robinhood’s too-good-to-be-true-sounding no-fee, 3% interest checking and savings accounts was exactly that.

On Thursday we wrote about Robinhood’s checking and savings accounts, which it promised would be protected by the SIPC. But, on Friday, the SIPC said it was all news to them, and frankly is not down to back the product.

After the mess, the founders acknowledged in a blog post there may have been some “confusion” and said they will rebrand the service. In the meantime as they put in the blog, “stay tuned for updates.”

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