Fresh after the Federal Reserve bumped interest rates higher by 25 basis points on Wednesday, Robinhood Markets Inc HOOD , a commission-free trading platform, announced it would increase its Robinhood Gold rate to 4.65% APY on May 4.
What Happened: The new rate is 19 times more than the national average savings rate. Customers can earn on their idle and uninvested cash thats swept into deposit accounts covered by the FDIC for up to $2 million. Interest compounds daily at 4.65% APY and is paid out monthly.
For $5 a month, Robinhood Gold comes with a range of benefits, including bigger instant deposits of up to $50,000, margin investing at 7.75%, real-time market data, and professional research by financial analysts at Morningstar Inc MORN . Users not enrolled in Robinhood Gold can still earn 1.5% interest for all their uninvested brokerage cash.