What You Need to Start a Robinhood Savings Account

Robinhood offers a savings account through a partnership with banks like Sutton Bank and Customers Bank. To open one, you need a Robinhood brokerage account first — you cannot create a savings account directly without it. The process takes about 10 minutes if you have the required documents ready.

You will need a valid government-issued ID (driver's license, passport, or state ID), your Social Security number, and a funding method like a bank account or debit card. Robinhood will verify your identity electronically during signup. You must be at least 18 years old and a U.S. citizen or resident alien with a valid tax ID.

The savings account itself has no minimum balance requirement and no monthly fees. Interest rates change based on market conditions — Robinhood publishes the current rate on their website and updates it regularly. You can link multiple external bank accounts to move money in and out.

Key Takeaways

  • You must open a Robinhood brokerage account before you can create a savings account, even if you never plan to trade stocks.
  • The entire process — brokerage account plus savings account — takes about 15 to 20 minutes and requires only your ID, Social Security number, and a bank account to fund it.
  • Robinhood's savings account has no minimum balance, no monthly fees, and no withdrawal limits, but the interest rate fluctuates and is published on their website.
  • Money transfers between your external bank and your Robinhood savings account typically clear within one to three business days.

Step-by-Step: Creating Your Brokerage Account First

Download the Robinhood app or visit robinhood.com on a web browser. Tap or click "Sign Up" and enter your email address. Robinhood will send you a verification code — check your email and enter it to confirm.

Next, you will enter your full name, date of birth, and Social Security number. Robinhood uses this information to verify your identity through third-party services. You will also create a password and set up two-factor authentication (usually a code sent to your phone). This step protects your account from unauthorized access.

Answer questions about your employment status, annual income, and investment experience. These are standard regulatory questions — Robinhood is required to collect them. Your answers do not prevent you from opening the account; they help Robinhood understand your financial situation for compliance purposes.

Upload a photo of your ID using your phone camera or computer. Make sure the ID is clearly visible and not expired. Robinhood's system reads the ID electronically and compares it to your face using your phone's camera. This usually takes less than a minute.

Linking a Bank Account and Funding Your Savings

Once your brokerage account is active, go to the "Account" or "Transfers" section (the exact name varies between the app and website). Select "Add a Bank Account" or "Link Bank Account." You will enter your bank's name, your account number, and your routing number.

Robinhood will make two small deposits (usually under $1 each) to your linked bank account within one to two business days. Check your bank statement for these deposits and return to Robinhood to confirm the amounts. This verification step proves you own the bank account and prevents fraud.

After verification, you can transfer money from your bank to Robinhood. Transfers typically take one to three business days to appear in your Robinhood account. You can also transfer money back to your bank account at any time with no fees or withdrawal limits.

Activating the Savings Account Feature

Once your brokerage account has been open for at least a few days and you have verified a bank account, the savings account option becomes available. In the app, look for a "Cash" or "Savings" section in your account menu. On the website, this is usually under "Account Settings" or "Cash Management."

Tap or click to enable the savings account. Robinhood will show you the current interest rate and explain that your cash balance will automatically earn interest. You do not need to do anything else — any money sitting in your Robinhood account will begin earning interest immediately.

Your interest is calculated daily and paid monthly. You can see your interest earnings in your account activity or statements. The rate Robinhood offers changes periodically, and they notify account holders when it changes.

Understanding Robinhood's Interest Rate and How It Works

Robinhood's savings account interest rate is not fixed — it changes based on what the partner banks decide to offer. As of early 2024, rates have ranged from around 4% to 5%, but this varies over time. Check Robinhood's website or app for the current rate before you fund your account.

Interest is compounded daily, meaning you earn interest on your interest. The total amount is deposited into your account once per month, usually on the first business day of the month. You can withdraw your money and interest at any time without penalty.

The savings account is separate from any brokerage investments you might make. Money in savings earns interest; money in stocks or other investments does not. You control how much of your cash balance sits in savings versus being available for trading.

Transferring Money In and Out

To move money from your bank to Robinhood, go to the Transfers section and select "Deposit." Choose the bank account you linked, enter the amount, and confirm. The money will arrive in your Robinhood account within one to three business days. Robinhood does not charge deposit fees.

To move money from Robinhood back to your bank, select "Withdraw" in the Transfers section. Choose your linked bank account, enter the amount, and confirm. This also takes one to three business days. There are no withdrawal fees or limits on how often you can transfer.

If you want to transfer to a different bank account than the one you originally linked, you will need to add that new account first and verify it using the same two-deposit method. Plan for an extra two to three days if you are adding a new bank account for the first time.

What Happens If Verification Fails

If Robinhood cannot verify your identity during signup, you will see an error message in the app or on the website. Common reasons include a blurry ID photo, a mismatched name or date of birth, or an expired ID. Take a new photo of your ID in good lighting and try again.

If the problem persists, contact Robinhood's support team through the app or website. They can review your submission manually and may ask for additional documents like a utility bill or bank statement to confirm your address. This process usually takes one to three business days.

If your bank account verification fails (the two small deposits do not arrive or you cannot confirm the amounts), double-check that you entered your account number and routing number correctly. If the numbers are right, contact your bank to make sure they are not blocking small deposits from Robinhood. Then try linking the account again.

Frequently Asked Questions

Do I have to trade stocks to use the savings account?

No. You can open a Robinhood brokerage account and use only the savings feature without ever buying or selling stocks. The savings account is a standalone product within your brokerage account.

Is my money insured if something happens to Robinhood?

Yes. Robinhood's savings accounts are held at partner banks (Sutton Bank and Customers Bank), which are FDIC-insured. Your deposits are covered up to $250,000 per bank per account holder. If you have accounts at multiple partner banks through Robinhood, each is insured separately.

Can I set up automatic transfers from my bank?

Robinhood does not currently offer automatic recurring transfers. You must initiate each transfer manually through the app or website. However, the process takes less than a minute once you have linked your bank account.

What if I want to close my savings account?

You can disable the savings feature at any time through your account settings. Your money remains in your Robinhood account but stops earning interest. You can withdraw it to your bank account or re-enable savings later with no penalty.

How do I report interest income for taxes?

Robinhood sends a 1099-INT form to the IRS and to you if you earn $10 or more in interest during the tax year. You will receive this form by January 31 of the following year. Report the amount shown on your tax return as interest income.