The investing app Robinhood is making headlines with the announcement of the Robinhood Gold Card. This credit card features a minimum of 3% cash back on all purchases and there's even a limited-edition 10-karat gold version. When compared to other cards, that rewards rate is typically capped after a certain amount of spending or to a specific category of purchases (i.e. gas or dining), but with this card you'll be able to earn 3% cash back on all purchases — with no limit on the amount you can earn.
It's not open for applications yet, but you can add yourself to the waitlist. While it's technically a no-annual-fee card, it's only open to Robinhood Gold members, which costs $5/mo or $50 a year.
Below, CNBC Select has the details on what you need to know about the card's features and benefits.
Robinhood Gold Card
Rewards
5% cash back on travel purchased through the Robin travel portal; 3% cash back on all other purchases
Welcome bonus
None
Annual fee
Requires a Gold membership which costs $5 a month or $50 a year
Intro APR
None
Regular APR
20.24% - 29.99% variable
Balance transfer fee
None
Foreign transaction fees
None
Terms apply.
Pros
- High cash-back rate on everyday purchases
- No foreign transaction fees
Cons
- Robinhood Gold subscription required
Robinhood Gold Card benefits
On top of the 3% cash back everywhere, cardholders also receive 5% cash back on travel purchases made through the Robinhood travel portal. Other benefits include:
- Trip interruption protection
- Travel and emergency assistance
- Roadside Dispatch
- Visa Signature Concierge
- Rental car collision damage waiver
- Purchase security
- Return protection
- Extended warranty protection
- No foreign transaction fees
If you're on the Robinhood Gold Card waitlist and refer 10 people to both sign up for a Robinhood Gold subscription and join the Gold Card's waitlist too, you are eligible to receive a 10-karat gold version of this card. Learn more at Robinhood.
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Robinhood Gold membership benefits
Robinhood offers a 1.5% APY on uninvested cash sitting in your brokerage account, but once you upgrade to a paid Gold membership you'll receive a 5% APY on those balances. Gold members also receive a 3% match on eligible contributions to a Robinhood IRA. If you can take advantage of these perks, the Gold subscription fee may be worth it, and the benefits you receive from a Robinhood Gold Card are icing on the cake.
Robinhood Retirement
Minimum deposit and balance
There is a $20 minimum to invest in the portfolio Robinhood recommends to you
Fees
Robinhood doesn't charge any management fees or commission fees for the IRA account. However, an IRA Match Early Withdrawal Fee may apply in some circumstances
Bonus
The Robinhood IRA offers a 1% match on eligible contributions up to IRA contribution limits. Limitations apply.*
Investment vehicles
Traditional IRA and Roth IRA
Investment options
Stocks and ETFs (users can invest in Robinhood's selection of 5–8 recommended ETFs, pick their own, or do a combination of both). According to the website, eligible users will soon be able to trade options in their IRA
Educational resources
Robinhood offers education materials on their website
Terms apply. Does not apply to crypto asset portfolios.
*The IRA Match is automatically added after eligible contributions from an external bank account. Keep the contributions in your IRA for at least 5 years from the date you contribute. IRA Match FAQ. Other fees may apply. See Fee Schedule for more details.
This membership tier also comes with a handful of other features such as larger instant deposits and access to Morningstar research and NASDAQ Level II market data.
Alternate cards to consider
If you don't want to wait for the Robinhood Gold Card to open for applications or you aren't interested in joining Robinhood Gold, these alternate cards can help you start earning rewards right now.
The Wells Fargo Active Cash® Card earns an unlimited 2% cash rewards on purchases and new card members can earn a $200 cash rewards bonus after meeting the card's spending requirement (spend $500 in purchases in the first 3 months). This card earns 1% less than the Robinhood Gold Card on non-bonus spending, but it has no annual fee and you have to pay at least $50 a year for a Robinhood Gold membership. To earn $50 in rewards at 1%, you have to spend $5,000, so you'll get a head start on earning cash rewards back with the Active Cash Card, especially when you factor in the welcome bonus.
Wells Fargo Active Cash® Card
Rewards
Unlimited 2% cash rewards on purchases
Welcome bonus
Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual fee
$0
Intro APR
0% intro APR for 15 months from account opening on purchases and qualifying balance transfers; balance transfers made within 120 days qualify for the intro rate
Regular APR
20.24%, 25.24%, or 29.99% Variable APR on purchases and balance transfers
Balance transfer fee
3% intro for 120 days from account opening then BT fee of up to 5%, min: $5
Foreign transaction fee
3%
Credit needed
Excellent/Good
See rates and fees, terms apply.
The Discover it® Cash Back earns 5% cash back on up to $1,500 in combined purchases in rotating quarterly categories (when you activate), then 1% cash back (which you also earn on all purchases outside of the quarterly categories). The welcome offer makes this card even more enticing because it matches the cash back new cardmembers earn for the first year. With this offer, you're effectively earning 10% cash back from spending that qualifies for the rotating bonus categories for the first year, and then 2% cash back on all purchases for the remainder of that year.
Discover it® Cash Back
Rewards
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases-automatically.
Welcome bonus
Discover will match all the cash back earned for all new cardmembers at the end of your first year.
Annual fee
$0
Intro APR
0% for 15 months on purchases
Regular APR
17.24% to 28.24% Variable
Balance transfer fee
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Foreign transaction fee
None
Credit needed
Good / Excellent
*See rates and fees, terms apply.
Read our Discover it® Cash Back review.
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Bottom line
Robinhood has announced a new cash-back credit card that will be available for its Gold members. The Robinhood Gold Card will earn at least 3% cash back on all purchases, which is an exceptional return for everyday purchases. A Robinhood Gold membership is relatively affordable compared to most credit card annual fees, which will make this card one of the best cash-back credit cards once it opens for applications.
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For rates and fees of the Discover it® Cash Back, click here.
