Earlier this week, stock-trading app Robinhood announced that it would offer a new feature to users in early 2019: a checking and savings account that didn’t have any fees attached to it.
Earlier this year, it launched a new feature that allowed users to trade cryptocurrencies, and reportedly began speaking with regulators to offer other banking products, like savings accounts.
Earlier this week, Robinhood launched its new feature: a tantalizing savings and checking feature that came with a Mastercard debit card and no ATM, membership, overdraft, transaction, or other fees.
Robinhood also said that the feature would be insured by the Securities Investor Protection Corporation, rather than the Federal Deposit Insurance Corporation.
Following the backlash, Robinhood deleted their introductory blog post, and issued a new one from cofounders Baiju Bhatt and Vlad Tenev, saying that while they were “Excited and humbled” about the response to the product, they “Realize the announcement may have caused some confusion,” and said that they plan to “Work closely with regulators as we prepare to launch our cash management program,” and “Revamp” how the program is marketed.
Robinhood spokesperson Lavinia Chirico has not responded to repeated requests for comment and clarification as to what the future of the feature might look like, or which regulators the company is speaking with.
The fine print on the sign-up e-mail simply says that it will be an added feature to its brokerage account and “And will not be a separate account or a bank account,” and says that it will “Provide additional information on the cash management program once it is operational.”