Robinhood Markets Inc launched its “Cash Management” service to a select base of customers on Wednesday.
The Cash Management service will allow the users to move their uninvested cash in their brokerage account to an interest-earning account which they can access through Robinhood debit cards.
The financial services company is offering an annual percentage yield of 1.8% for these accounts.
Last year, it promised a 3% interest rate for what was then called the Checking & Savings service.
The Cash Management service is a significantly toned-down version of the Checking & Savings program Robinhood introduced December last year.
The financial services company had said at the time that the ambitious service offered through its brokerage arm would be covered by the Securities Investor Protection Corporation’s insurance.
The SIPC soon busts the bubble, saying that Robinhood’s service won’t be covered through its program – forcing the company to rework the details.