Robinhood Backs Down

Last week, Robinhood announced a new checking and savings account which pays 3% interest on money in either accounts and has no fees.

Despite working on the product “for over two years,” regulators were caught by surprise which forced Robinhood to change the name of the new service from “Checking & Savings” to “Cash Management,” while removing all marketing materials and wording describing the banking service.

It is unclear what the new “Cash Management” feature will include, but rest assured – Robinhood will be working closely with regulators: “As a licensed broker-dealer, we’re highly regulated and take clear communication very seriously. We plan to work closely with regulators as we prepare to launch our cash management program, and we’re revamping our marketing materials, including the name. Our promise is unwavering—we always put our customers first—whether it’s deciding which features to build, keeping your cash and securities protected, or offering products that allow everyone to participate in and benefit from the financial system.”