The Entrepreneurs Weekly
No Result
View All Result
Thursday, July 3, 2025
  • Login
  • Home
  • BUSINESS
  • POLITICS
  • ENTREPRENEURSHIP
  • ENTERTAINMENT
Subscribe
The Entrepreneurs Weekly
  • Home
  • BUSINESS
  • POLITICS
  • ENTREPRENEURSHIP
  • ENTERTAINMENT
No Result
View All Result
The Entrepreneurs Weekly
No Result
View All Result
Home Business

Robinhood CEO: Bank Customers ‘Ripped Off,’ Offers 5% APY | Entrepreneur

by Brand Post
November 16, 2023
in Business
0
Robinhood CEO: Bank Customers ‘Ripped Off,’ Offers 5% APY | Entrepreneur
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter


Robinhood, the stock trading app that made a name for itself during the GameStop frenzy of 2021, is fighting to regain lost ground amid an exodus from the platform and falling stock prices.

The company will now pay subscription customers a 5% annual percentage yield (APY) on uninvested cash — significantly above payments from traditional banks, which Robinhood CEO Vlad Tenev says have long been duping customers, CNN reported.

Image Credit: Getty Images. Robhinhood CEO Vlad Tenev.

Related: Robinhood Has Made More Than $50 Million in Crypto Trades But Won’t Invest Its Own Money. Here’s Why.

“Customers are beginning to wake up and realize that they have been getting ripped off by these traditional financial institutions,” Tenev told the outlet. “These banks are basically generating all of this revenue that they’re not sharing with customers. We see an opportunity to correct that.”

Robinhood’s 5% APY is one of the highest in the industry. Betterment, which offers a 4.75% APY; Wealthfront, which offers up to 5.5% APY; and Empower, which offers 4.7% APY, are among the other top contenders, per Investopedia.

But unlike the others, which have $0 monthly maintenance fees, Robinhood customers can only lock in that 5% rate if they pay $5 per month for a Gold subscription. The rest will have to settle for 1.5% APY — no 5%, but still much higher than the national average of .58% reported by Bankrate.

“It’s sort of like banks have assumed that customers are not savvy or intelligent enough to realize that rates are changing, and they could be generating a higher risk-free rate of return on their funds backed by the US government,” Tenev told CNN.

Related: 13 Easy Investing Apps and Websites for Millennials

When the outlet approached the American Bankers Association for comment, spokesperson Jeff Sigmund noted that “Robinhood can only offer FDIC protection on some of its products because it partners with FDIC-insured banks.”



Source link

Tags: APYBankBusiness NewsCEOCustomersentrepreneurgamestopInvestingMoney & FinanceNews and TrendsOffersPersonal FinanceRippedRobinHoodSavingsStocks

Related Posts

Chuck E. Cheese Is Opening an Arcade Concept for Adults | Entrepreneur
Business

Chuck E. Cheese Is Opening an Arcade Concept for Adults | Entrepreneur

July 2, 2025
13 Jobs Without College or AI: Salaries Can Start at k+ | Entrepreneur
Business

13 Jobs Without College or AI: Salaries Can Start at $70k+ | Entrepreneur

July 2, 2025
How I Built a Multi-Unit Franchise Operation Without Leaving My Day Job | Entrepreneur
Business

How I Built a Multi-Unit Franchise Operation Without Leaving My Day Job | Entrepreneur

July 2, 2025
  • Trending
  • Comments
  • Latest
Meet Amir Kenzo: A Well Known Musical Artist From Iran.

Meet Amir Kenzo: A Well Known Musical Artist From Iran.

August 21, 2022
Behind the Glamour: Bella Davis Opens Up About Overcoming Adversity in Modeling

Behind the Glamour: Bella Davis Opens Up About Overcoming Adversity in Modeling

April 20, 2024
Dr. Donya Ball: Pioneering Leadership Solutions for Tomorrow’s Challenges

Dr. Donya Ball: Pioneering Leadership Solutions for Tomorrow’s Challenges

May 10, 2024
Nasiyr Bey’s Journey from Brooklyn to Charlotte: The Entrepreneurial Path to Owning a Successful Cigar Lounge

Nasiyr Bey’s Journey from Brooklyn to Charlotte: The Entrepreneurial Path to Owning a Successful Cigar Lounge

August 8, 2024
Augmented.City Startup Developers Appeal To US Politicians With An Open Letter

Augmented.City Startup Developers Appeal To US Politicians With An Open Letter

0
U.S. High Court Snubs Challenge To State And Local Tax Deduction Cap

U.S. High Court Snubs Challenge To State And Local Tax Deduction Cap

0
GOP Lawmaker Blames Biden For Russia-Ukraine War: Putin ‘Could never have Invaded’

GOP Lawmaker Blames Biden For Russia-Ukraine War: Putin ‘Could never have Invaded’

0
Brad Winget’s Tips and Tricks on Having a Career in Real Estate

Brad Winget’s Tips and Tricks on Having a Career in Real Estate

0
Chuck E. Cheese Is Opening an Arcade Concept for Adults | Entrepreneur

Chuck E. Cheese Is Opening an Arcade Concept for Adults | Entrepreneur

July 2, 2025
13 Jobs Without College or AI: Salaries Can Start at k+ | Entrepreneur

13 Jobs Without College or AI: Salaries Can Start at $70k+ | Entrepreneur

July 2, 2025
How I Built a Multi-Unit Franchise Operation Without Leaving My Day Job | Entrepreneur

How I Built a Multi-Unit Franchise Operation Without Leaving My Day Job | Entrepreneur

July 2, 2025
Microsoft Layoffs: Another 9,000 Employees Cut | Entrepreneur

Microsoft Layoffs: Another 9,000 Employees Cut | Entrepreneur

July 2, 2025

The EW prides itself on assembling a proficient and dedicated team comprising seasoned journalists and editors. This collective commitment drives us to provide our esteemed readership with nothing short of the most comprehensive, accurate, and captivating news coverage available.

Transcending the bounds of Chicago to encompass a broader scope, we ensure that our audience remains well-informed and engaged with the latest developments, both locally and beyond.

NEWS

  • Business
  • Politics
  • Entrepreneurship
  • Entertainment
Instagram Facebook

© 2024 Entrepreneurs Weekly.  All Rights Reserved.

  • About Us
  • Advertise
  • Contact Us
No Result
View All Result
  • ENTREPRENEURSHIP
  • ENTERTAINMENT
  • POLITICS
  • BUSINESS
  • CONTACT US
  • ADVERTISEMENT

Copyright © 2024 - The Entrepreneurs Weekly

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In