New York (CNN Business)Robinhood, the incredibly popular investing app, unveiled new checking and savings accounts Thursday that have no fees, access to 75,000 free ATMs and here’s the kicker an interest rate that earns 3% for consumers who put money in the product.
But there may be a big problem with Robinhood’s offerings: They may not be insured.
The Securities Investor Protection Corporation, a Washington-based nonprofit organization that protects investors from losses at member brokerage firms, said Friday that the new Robinhood products would not be protected.
“SIPC protects cash that is deposited with a brokerage firm for one limited purpose … the purpose of purchasing securities,” said Stephen P. Harbeck, president and CEO of SIPC, in a statement to CNN Business.
“Cash deposited for other reasons would not be protected. SIPC does not protect checking and savings accounts since the money has not been deposited for a protected purpose,” Harbeck added.
In other words, if Robinhood goes belly up and you have money in their checking or savings accounts, you may be out of luck.
In a statement on its website, Robinhood said: “As a licensed broker-dealer, we’re highly regulated and take clear communication very seriously. We plan to work closely with regulators as we prepare to launch our cash management program, and we’re revamping our marketing materials, including the name.”
Robinhood has made waves in the financial services industry, prompting many big banks and brokerage firms to start making lower-cost accounts available to Millennials. Vlad Tenev, the company’s co-founder, wrote in a blog post in October that Robinhood now has more than six million customers.
But Robinhood is not registered as a bank. So any deposits that customers make with the company would not be protected with the Federal Deposit Insurance Corporation either.
Robinhood is offering the checking and savings customers a debit card, but it is in partnership with Ohio-based Sutton Bank.
According to the help center section of Robinhood’s web site, the company says that it is not a bank and it is offering its checking and savings account through a brokerage account. That seems to be why Robinhood thinks it’s eligible for SIPC protection.
The company added in its help center section that SIPC insurance covers checking, savings and investments up to a total of $500,000 — half in cash and the other half in securities.
But Robinhood also pointed out that the SIPC insurance only provides protection if Robinhood fails financially. It would not cover investment losses for any assets that people have in their Robinhood accounts.
ThemeMaker Live VIP MasterclassEXCLUSIVE 4 Week LIVE VIP Masterclass. Ask Me Questions, Exclusive Tips and Watch Me Build Sites With You In This Live Masterclass!
CryptoSuite.CRYPTOSUITE IS THE WORLDS
and ONLY CRYPTOCURRENCY
that automates all the manual processes seasoned crypto experts do manually to make you serious money, puts all the tools needed into 1 simple,easy digestible suite while removing all guesswor
Playtraffic Elite YearlyThe secret to effective YouTube video marketing lies in playlist marketing. Implement this strategy with Playtraffic and rank like never before.
Playtraffic can easily find tons of perfect Playlist ready keywords and corresponding YouTube videos from any
List Janitor AGENCYThe List Janitor Pro Version will give you the capability to maintain other’s email lists. Email cleaning and management service providers charge large sums for these services.
Charge a monthly fee or a one time cost and provide the same set of services
ATL - GOLD Upgrade - LITEThe Affiliate Traffic Lab is a 100% cloud based software that creates traffic getting videos that you can rank on Google and Youtube in minutes to get you free traffic, leads and sales.
LeadPrimo StarterWorld’s ONLY All-In-One Email Marketing Platform That Creates Beautiful Lead Pages and Send UNLIMITED Emails Directly into Inbox to Get You More Clicks and Open Rates Without Paying Any Monthly Fees FOREVER.
Peter's Home Video Studio TourGet a tour of Peter's home video studio and see the exact equipment, mics, lighting etc needed to create pro looking videos that power a 7 figure business.
ATL - GOLD Upgrade - PROThe Affiliate Traffic Lab is a 100% cloud based software that creates traffic getting videos that you can rank on Google and Youtube in minutes to get you free traffic, leads and sales.
One Time Hosting Triple Up Nickel 12Upgrade your One Time Hosting Nickel 4 Plan to Nickel 12 Plan includes hosting for 12 websites with 12 GB storage. (Note: this is an upgrade to the One Time Hosting Nickel 4 Plan - this is not a standalone product)
Enlightened Millionaire Mentorship (Level 3) Payment 1/2Enlightened Millionaire Intensive - Personalized mentoring for meeting specific goals for both business owners and their team to maximize productivity w/ cutting-edge personal development and unique business growth acceleration strategies for reaching 7-f
BlogaShop Pro (Charter Members Discount)Blogashop PRO is a WP plugin that allows users to search from our db of over 60K articles, spin them (with a free Spinner Bros account), add royalty free images, YT vids, push posts to their Shopify Store Blogs, and manage all Shopify posts from a central
XNiche360XNiche360 is a Bundle of Most Demanding Top 10 Local Niches
10 Niche Websites
10 Social Media Banners
10 Unique Logos
10 Email Swipes
10 VSL embeded in Websites
The APS Captipic SuiteCaptiPic The ULTIMATE Image Personalisation Tool For Emails and Websites!
Capitpic is a saas platform that allows you to personlaise images inside websites AND emails you send out.
People can personalise their APS pages/Delivery pages and MORE to create a
MailZingo Starter PlanGive Your Subscribers the World's No.1 and Most Powerful Email Marketing Software to make them STOP Loosing their Leads, STOP Paying Heavy Monthly Fees and Generate More Leads,
Gets them Better Delivery, More Opens and Clicks completely hassle free...
Mobiflux Agency EliteWith WP Mobiflux you can set up a profitable business even before you run it on your site or campaign.
WP Mobiflux is a powerful traffic multiplication system, that will provide your clients with the seed mobile traffic easily. So, just sell WP Mobiflux
Fan AutomaterRun Fully AUTOMATED UNLIMITED FanPages in ANY NICHE
Get 100s of NEW REAL FANS Every Week
Huge VIRAL Organic REACH for all posts
Auto Content Curation – Links, Images, Videos
Comes with REAL PROOF and RESULTS
EasyTracks Mega BundleEasyTracks Super Bundle contains a library of "elastic" soundtracks that you can use with Easy Audio Lab (included with each bundle) to create professional soundtracks that match the duration of your video quickly and easily! All EasyTracks are
Livecaster 3 Pro MonthlyGet on top of rankings and traffic with Livecaster3 Pro Version. It comes with several compelling capabilities and has absolutely no caps. Livecast on unlimited pages, profiles and YouTube channels
This upgrade lets you Livecast multiple videos simultane
Loop Vidio PROUnique Desktop Software for Ranking YouTube Videos on Google.
ScriptReel - VidCuratorFX2 PROVidCuratorFX2 PRO is a powerful video creator that creates 100s of videos using just a keywords. This special ScriptReel offer comes with Agency license and all the PRO features currently valued at $134.
ShopABot Covert Commissions Monthly - VIPAutomatically monetize every new lead with our done for you, fully hosted and managed email subscription service. We'll create campaigns and send on your behalf day in, day out - earning you 100% handsfree affiliate income from every subscriber who joins
Tuberank Jeet 3 PROPowerful features that you’ll find in Pro are superior analysis with support for up to 100 competitor videos. Automatic posting to Facebook and Twitter social media accounts. As soon as a video is uploaded, Tuberank Jeet will post to respective social med
Stealth CommissionsEXPOSED! The Stealth Method Which Gives You A Proven, Passive and Automated System For Profiting On YouTube Within Your First 24 Hours!
The Big Three Indicator Trading SoftwareTHE BIG THREE INDICATOR IS THE ONE OF THE BEST TRADING SOFTWARE TOOLS AVAILABLE. This trading tool works with Cryptocurrency, Stocks, Options, and Forex! Available on the most POPULAR trading platforms. Remove all the guesswork and start learning to trade
Octosuite - PLR rights for 10 accountsOCTOSUITE allows you to replace the need for a social media manager by having ALL of your fan pages and groups posting the most viral trending content daily for you instantly, sending your organic reach’ through the roof, your posts viral while automating t
IM VIP TRAINING - MONTHLYIM VIP Training - Access to over 240 lessons, software, templates, plugins, live webinars and much more.
Converzly Template Club (Monthly)We know that EVERY BUSINESS needs a website… so yes this is a page builder, but it’s far superior than any other out there..
What if you could fill out a form or a questionnaire about you,, your business, your customers and the type of result you wanted.
Leadzbuilder Stock Media Monster Special DS 2Are You Ready To Equip Yourself With THE MOST COMPLETE STOCK MEDIA ASSET LIBRARY EVER! Get Instant Access To Over 5,000 (70 + Gig) High Definition 2015 Styled Stock Videos, Video Motion Backgrounds, Stock Photos, Web Images, Marketing Graphics, Background
Social Media Marketing AgencyYES, I'd like to join the Social Media Marketing Agency Program, learn how to start a wildly profitable 6-figure consulting business and get my first client within 42 days.
Humalytics Starter PackageHumalytics is the all-NEW Innovative “Human Metrics” technology that measures the emotional response, facial expressions and reactions from REAL people who watch your videos to help you PREDICT and CONVERT more viewers into paying customers and save TONS
TubeTraffic : TRJ + TJGet more powerful YouTube marketing with good quality optimization. This is the key to success to LONG TERM YouTube profitablity, get this TubeTraffic OTO to better you video optimization.