Streamlining all things personal finance, family, and lifestyle.

Why Robinhood’s New Gold Card is a Killer

Posted:

Last Updated:

Summary

  • Robinhood launched its first credit card called Gold Card on March 26, 2024.
  • The Gold Card boasts an unlimited 3% cash back across all categories, no foreign transaction fees, no annual fee, and many more attractive features.
  • For existing Robinhood Gold members, this is a no-brainer; for non-Gold members, it’s a must try.
Source: Robinhood website

What is the Gold Card?

The Gold Card is Robinhood’s new and first credit card product for its Gold members. You need to be a Robinhood Gold member ($50 membership fee annually or $5 a month) to utilize the Gold card but don’t have to be to get on the waitlist for the Gold Card.

Below is a comprehensive list of all the features.

  • Cash back: 3% unlimited across all categories. 5% on travel
  • Redemption: can transfer as cash to bank or brokerage account, book travel through travel portal, shop at retailers, or purchase gift cards.
  • No foreign transaction fees
  • No annual fee (other than the membership fee for Robinhood Gold)
  • Virtual card access
  • Additional cardholders: can also add additional cardholders without SSN
  • Issuer: Visa
  • Referral bonus: if you refer 10 people. you are eligible for a physical card that is made with real 10K gold (while supplies last)

Why is It a Great Deal?

Since the Gold Card is a Visa card, the card should be usable at Costco.

Currently I use Chase Freedom Unlimited to get 1.5% back (and if you pair it with chase Reserve, these should be worth at least 2.25% when you redeem for travel and get the 50% bonus on Chase Reserve points) and I know you get 2% back on the Costco cobranded Citi card.

Now, if you spend over $3333 at Costco with your Chase Freedom Unlimited ($5,000 if you use the Citi card), the card really pays for itself ($50 / 1.5% or 1% depending on the card you use).

Plus, you’re getting the added bonuses from the Robinhood Gold membership listed below.

  • High APY on cash: 5.25% (existing for Gold members) + 1% (new boost on deposits with no caps, announced today)
  • Match for IRA: 3% for contributions; 1% for transfers and rollovers

I was aware of the 3% match that Robinhood was promoting but I wasn’t really convinced by it because I get good benefits from Chase and Interactive Brokers for holding my IRA funds at both brokerages.

But with the boost in Gold benefits and the very generous Gold Card, I think this pushes me over the fence.

How am I Taking Advantage of This?

Below is what I am planning on doing.

  • Open a Robinhood account.
  • Pay for Robinhood Gold.
  • Contribute up to the contribution limit for traditional IRA at Robinhood and get the 3% match (I already contributed up to the employer match in 2024 but haven’t maxed out the full annual limit to qualify for a deduction).
  • Transfer my Roth IRA from Interactive Brokers to Robinhood Roth IRA
  • Transfer my Traditional IRA from Chase to Robinhood Traditional IRA, just enough to maintain my Private Client benefits.
  • Move some of my cash from other high yield savings accounts to Robinhood.
  • Consider whether I want to take advantage of the 6.25% effective APY by directing my direct deposit to Robinhood instead of SoFi (I’m still undecided about this although the APY spread is very high at 1.65%).

Final Remarks

It sucks that I just applied for a SoFi card because I’ll have to wait at least 3 months and up to 6 months to be conservative (check out my previous post Easy Guide to Applying for a New Credit Card).

Having said that, I’m excited by this offer to start utilizing Robinhood more and really figuring out how the company has grown up from its roots as a trading app.

As someone who’s been excited about SoFi in the past, this is a warning sign for SoFi though, not to mention traditional brokerages like Charles Schwab. I’ll be sure to update my thoughts as I level up as a Robinhood user.

Resources

(2) Robinhood Presents: The New Gold Standard / X (twitter.com)

Robinhood Gold Card waitlist | Robinhood

New Robinhood Credit Card Will Earn 3% Back on Most Purchases – NerdWallet