The service, named Robinhood Banking, will enable users to manage their accounts and transfer funds using the Robinhood Credit Card app. Despite lacking physical branches, the platform aims to provide convenience by offering cash delivery directly to users’ homes. Although specifics on this feature are sparse, Robinhood mentions that the availability will vary depending on the user’s location.

Robinhood Banking is set to offer a competitive 4 percent annual percentage yield (APY) and FDIC insurance coverage up to $2.5 million. The company clarifies that it isn’t an FDIC-insured bank, thereby offering “pass-through” insurance via FDIC member Coastal Community Bank. This method involves safeguarding people’s deposits by holding them in an FDIC-insured bank through a third-party arrangement, as described by the FDIC.

The service will offer individual and joint banking accounts at launch, along with options to create children’s accounts. Deepak Rao, Robinhood Money’s general manager and vice president, says the platform is designed to “solve many of the challenges presented by legacy banks.”

In addition to a bank account, Robinhood is launching a new wealth management platform called Robinhood Strategies. It will offer access to a mix of single stocks and exchange-traded funds (ETFs), which “are actively managed to provide access to more opportunities.” The funds have a 0.25 percent annual management fee, with a yearly cap of $250 for Robinhood Gold members.

Robinhood Strategies is available to Robinhood Gold members today, but it’s coming to all customers next month. Robinhood Gold is the company’s $5 per month (or $50 per year) subscription program that offers features like margin investing and larger instant deposits.

Later this year, Robinhood also plans to launch an AI-powered investment tool called Cortex for Gold subscribers. It will provide analyses and insights about the current market, such as why a particular stock is going up or down, as well as which stocks to consider trading.

Over the years, Robinhood has transformed itself from a simple investing app into an all-in-one hub for users’ finances. The company launched a credit card in 2024 as part of efforts to encourage people to keep their money within the widening Robinhood ecosystem, where they’ll now be able to store and withdraw cash to make investments on the app, too.