Earlier this month, Robinhood announced its new savings rate of 2.05% which was the highest in the market at the time - relative to 1.90% for Marcus, and Varo Money for 2.02%. This week, Robinhood lowers its APR by 25 points to 1.80% from the original 2.05%.
While most traditional bank savings rates have staggered along at near zero thus representing no real rate of return. For example, Chase offers a paltry 0.04% return (as of October 29). Some digital banks, which benefit from a lower cost structure in contrast to old banks, have promoted far higher savings rates to encourage new accounts Earlier this month, Fintech Robinhood announced new savings accounts that earned 2.05% interest – one of the highest in the market. The rate was designed to lure more users to its bank-like service.