How does the FDIC insurance apply to Robinhood accounts?

3 answers

• chand basha shaik koraguntapalJul 24, 2020 · 6 years ago
  Absolutely! The FDIC insurance applies to Robinhood accounts in a slightly different way compared to traditional bank accounts. While Robinhood is not a bank, they work with partner banks to hold your funds. These partner banks are FDIC-insured, which means that your cash balance in your Robinhood account is protected up to $250,000 in case the partner bank fails. It's important to note that only the cash balance is covered by FDIC insurance, not the investments you hold in your Robinhood account.
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• Low ShengDec 10, 2025 · 2 months ago
  Yes, your funds in Robinhood accounts are protected by the FDIC insurance, but there are some limitations. The FDIC insurance only covers the cash balance in your Robinhood account, up to $250,000. This means that if the partner bank holding your funds fails, you will be reimbursed up to $250,000. However, it's important to remember that investments in your Robinhood account, such as stocks or cryptocurrencies, are not covered by the FDIC insurance. So, while your cash balance is protected, your investments are subject to market risks.
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• Sean Sok AnApr 09, 2022 · 4 years ago
  Sure thing! When it comes to FDIC insurance and Robinhood accounts, it's important to understand that Robinhood itself is not a bank. Instead, they partner with banks to hold your funds. These partner banks are FDIC-insured, which means that your cash balance in your Robinhood account is protected up to $250,000 in case the partner bank fails. This insurance coverage is similar to what you would have with a traditional bank account. However, it's worth noting that investments in your Robinhood account, such as stocks or cryptocurrencies, are not covered by the FDIC insurance.
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