[yieldcrv]

> Sure, the Robinhood Gold membership fee will act as a cushion, but at $5/month, it will only take cardholders around $2,000 to recoup their money. Not a high amount. On top of that, Robinhood is on the hook for 5% APY on uninvested cash. Yes, the uninvested balance is cash that Robinhood can invest and profit from, but will they clear the 5% hurdle every time? I am not sure. Oh, did I mention that they would give 1% back on uninvested balance, in addition to the 5% APY? And 3% IRA matching? Whatever plan they have but don’t share, unsurprisingly, must be really good to make the maths work.

I mean it can easily just be a ponzi, but Robinhood is in the business of selling data, Citadel being their top client

Having spending data to sell is a natural diversification or expansion, as Payment for Order Flow may get regulated away

but even without that, many banks do the expensive thing for a few years and then just change the terms on the account/card, they tend to keep the customers

[mrep]

Yeah, Ubers credit card had good cash back for a while and then they nerfed it.

[gorlilla]

It's part of the marketing budget spend.