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


December 17, 2018

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.”

Daily briefings, straight to your inbox

Business and tech news in 5 minutes or less

Join over 1 million people who read The Hustle

Psst

How'd Bezos build a billion dollar empire?

In 1994, Jeff Bezos discovered a shocking stat: Internet usage grew 2,300% per year.

Data shows where markets are headed.

And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?

Join us, it's free.

Look, you came to this site because you saw something cool. But here’s the deal. This site is actually a daily email that covers the important news in business, tech, and culture.

So, if you like what you’re reading, give the email a try.