Fintech investing platform, Robinhood has raised the competition for checking and savings by forgoing brick-and-mortar branches. It has launched its own no-fee checking and savings account features that earns 3% interest rate. Robinhood is investing to impress its customers by using the scalability of software. With interesting perks to customers and a claim of more US ATMs than the five biggest banks combined, the company has leveled up its strategies to offer an alternative to the high-fee, low-yield savings accounts offered by the traditional banking giants.
"We believe you should earn more on your money, and shouldn’t be charged fees to access it," quoted co-founders Baiju Bhatt and VladTenev.
Robinhood launches its checking and savings account feature witha debit card(MasterCard)which is issued through Sutton Bank. The company doesn’t charge any monthly fees or overdraft fees and it doesn’t require any minimum balance. Robinhood is offering pretty good deal considering other leading banks that charge some or the other of such fees and also pays much lower interest rates. One of the best features that the company is offering is getting access to 75,000 ATMs in places like Walgreens, 7-Eleven etc.
As the company understands brick-and-mortar locations are expensive, and the company’s goal is to build a completely digital experience and hence they can reduce their overhead expenditure and pass more value back to the customer.