Robinhood is offering 1.5% and 4.9% APY for "un-invested" or "Free" cash that is in your regular and Gold Membership accounts respectively. That's great, I don't need to commit to a CD or anything, it's just a savings account. Is 4.9% APY a lot? Are there other brokers doing this and are offering more? If Robinhood is doing this, wouldn't other brokers be offering similar services? https://robinhood.com/us/en/support/articles/cash-sweep-program-interest-rate/ Gold Membership is $5 a month. I might just move all the money from my checking account in there. My Bank isn't offering a lot of interest on their savings accounts.
Fidelity's current rate they are paying in their "SPAXX" money market fund is 4.98%. They don't charge $5 a month and you're dealing with Fidelity not Robinhood.
Robinhood Interest Rate ---- 4.9% Webull Interest Rate ---- 5% Webull has Better Offer than any so far
But all your funds would be tied up in said money market fund, whereas with IB or Robinhood you still can use the funds that earn interest as collateral for trading.
I am 4-week t-bill and chill investor on long term money here and 4.9% in and out is good enough. I don't have a Robinhood account but it is interesting. It is a compelling reason to open an account and tactically short crypto.
Then that's definitely not a real money market fund. Link please to the claim Fidelity accepts funds invested in SPAXX as collateral for other risk positions.
My account at Fidelity lists the money I have in SPAXX as non margin buying power, and twice that amount as margin buying power. SPAXX is one of their sweep accounts which all uninvested cash goes in. They also list the money in SPAXX as "held in money market"