![]() ![]() ![]() Program banks pay interest on your swept cash, minus any fees paid to Robinhood. Interest is earned on eligible uninvested cash swept from your brokerage account to program banks. For more information, see the Robinhood Gold User Agreement. Robinhood Gold is offered through Robinhood Financial LLC. The brokerage cash sweep is an added feature to your Robinhood Financial, LLC brokerage account. When the rate goes down, mortgage rates and other loan rates often do as well. Keep in mind, the impact of a fed funds rate decrease isn’t all bad. We'll announce these changes so you're aware before it happens. This also means that the rate would go up if the Federal Reserve announces an increase to the federal funds rate. When the federal funds rate fluctuates, the rate you receive through the brokerage cash sweep may also change. These banks pay interest rates that are determined in part by the federal funds rate, which moves up and down as mandated by the Fed. When you opt your brokerage account into the brokerage cash sweep program, your money is held at one or more of the banks in our program. The Fed uses various tools it uses to meet these goals, but interest-rate changes often get the most attention because they directly impact on how much interest you can earn and how much it costs to borrow. In short, the Federal Reserve Bank (or “the Fed”) and market conditions are the biggest factors in APY fluctuations.Ĭongress assigns 3 main goals to the Fed: maximum sustainable employment, stable prices, and moderate long-term interest rates. ![]()
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