Is Robinhood Gold Worth It?
Let’s take a step back and look at what Robinhood Gold is.
What is Robinhood Gold?
Check this post out for more info on what Robninhood Gold is.
This post is about is Robinhood Gold worth it.
Let’s dive into the top 5 reasons on is Robinhood Gold worth it:
1. Interest on Uninvested Cash
One of the best benefits of Robinhood Gold is that you’ll have a higher interest rate on uninvested cash. Typically, without Gold, the interest rate would be 1.5%, but with Gold, you can boost this percentage up to 4.9%. Still not impressed? Say you had $1,000 in uninvested cash, you’d only get is $15 for the year. However, with 4.9%, you would get $49! That’s more than 3x the return for cash that you would’ve had sitting there anyway!
2. Professional Research
Having access to professional research can provide more insight to your decisions involving your investments. This is all the more valuable in aiding your decision making process. This is quite possibly one of the reasons that pushes people to open brokerage accounts with certain brokerages rather than others.
3. IRA Match
Another benefit to Robinhood Gold is getting a 3% IRA match on eligible IRA contributions. There’s also the potential for an additional 2% match if the following condition is met: you remain a Gold subscriber for at least (consecutive) 1 year from the date of your first 3% match. This might be an interesting benefit to consider if the match is higher than what you’re receiving elsewhere.
4. Active Trader
Being a Robinhood Gold subscriber also has the benefit of margin investing where you can invest at a lower rate than those who do not subscribe. The rate for a Gold member is at 8%, whereas a non-Gold member is at 12%. This, in conjunction with the added access to professional research could be imperative for active traders and their investing decisions.
5. Cost vs Benefit
Robinhood Gold costs $5 per month to partake in the benefits. Some benefits are easier to quantify than others. The most simple way to determine whether Robinhood Gold’s worth it, is if you have enough uninvested cash where the amount you receive in interest is at least $5. That being said, the amount of uninvested cash you’d need deposited to receive at least $5 is $103. If you have that amount deposited, but not invested, you’ll break even.
To reiterate, the top 5 reasons on is Robinhood Gold worth it are:
- Interest on Uninvested Cash
- Professional Research
- IRA Match
- Active Trader
- Cost vs Benefit
There you have it! Interested in learning more about Robinhood Gold? Check this post out for what is Robinhood Gold.
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