I love it when the universe makes a good thing even better. Earlier this week, Robinhood made good on its promise. The promise: 1% bonus to all non-IRA deposits made by Robinhood Gold members.
Sounds familiar? CEO Vlad Tenev announced it in the Robinhood Presents: The New Gold Standard earlier this year. Robinhood already matches all user IRA deposits by 1% (Robinhood Gold members get 3% match). The broker has extended this 1% bonus to taxable accounts.
The caveat: you must be a Robinhood Gold member to get 1% match on non-IRA deposits.
I'm excited. That's more money for doing my usual thing -- putting money into my Robinhood account. But is it worth the upgrade to Robinhood Gold? Let's consider when the perks outweigh the costs, plus see how the 1% bonus stacks up to other brokers.
Robinhood Gold is worth it if you deposit more than $6,000 a year
Getting a 1% match on deposits means you can earn more than the cost of a Robinhood Gold membership. Some quick math: one year of monthly Robinhood Gold membership payments costs $60. If you deposit $6,000 as a Robinhood Gold member, you get a $60 return. Anything extra is bonus money.
There are caveats. It takes two years for your 1% bonus to vest. If you cancel your Robinhood Gold membership before the money vests, you lose future payouts. In short, this perk is only worth using if you plan to keep Robinhood Gold for the long term.
Combined with other Robinhood Gold perks, the 1% deposit bonus can earn you more than you spend. For many, that makes a Robinhood Gold subscription worth it.
What if you deposit less than $6,000 per year?
Robinhood Gold offers more than 1% back on taxable deposits.
Robinhood Gold is worth it when you:
- Keep an average balance of $1,200 in uninvested cash for a year
- Deposit $6,000 into your brokerage account
- Deposit $2,000 into your IRA
- Spend $2,000 with your Robinhood Gold Card
- Borrow $1,000 of margin
Any one of these moves can earn you more than you spend on a Robinhood Gold membership. That said, it's not for everyone. If you invest little, deposit little, avoid margin, and don't give a fig about the Robinhood Gold Card, the $5 monthly Robinhood Gold membership has little to offer.
Robinhood is the only broker with a 1% deposit match
As of this writing, Robinhood is the only broker that matches non-IRA deposits 1%, with no cap. That makes the perk unique. However, you must pay the $5 monthly or $60 annual membership fee to take advantage of it. Other brokers offer great perks with no fees.
But what if we compare Robinhood vs. SoFi? SoFi, a bank and brokerage, doesn't offer a 1% deposit bonus to non-IRAs. However, SoFi Plus members get premium perks with no fees. To get SoFi Plus, you need to set up qualifying direct deposits for SoFi Checking and Savings (member FDIC). Through December 2024, SoFi users get 1% match on all IRA deposits, just like Robinhood users.
Employers often match your deposits like Robinhood does. So, you can open a 401(k) to earn bonus money on your investments. It's an alternative to opening a Robinhood brokerage account and splurging on a Robinhood Gold membership.
Should you open a Robinhood brokerage account for 1% match?
Open an account for 1% match if you:
- Deposit lots of money into your brokerage account
- And plan on remaining a Robinhood Gold member long term
Or, open a free Robinhood account to get 1% match on your IRA deposits. All Robinhood users get that 1% match on IRA deposits, regardless of membership status.
Robinhood is one of the best stock brokers for no-frills investing. You get a lot of perks and very few fees compared to competitors. But Robinhood is missing some investment types and accounts, including mutual funds, SEP IRAs, and bank accounts.
Don't like Robinhood Gold? Feel free to let the new 1% deposit match pass you by.
Robinhood is a great broker, but so are top competitors like SoFi and Fidelity. They are all racing to unlock new perks for investors like you. You have options -- so shop around for the broker that meets your needs.
