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Interest rates are historically high — this is bad news if you carry a credit card balance, but if you’re saving money right now, interest rates can help you reach your goal even faster.
That’s why it’s important to be smart about where you stash your cash while you’re saving for something big, like a new piece of music equipment or studio space. A cash sweep program can be a great option for this money. It’s available when you need it, but earns way more than it would if it were sitting in a traditional bank account — or as crumpled twenties in a cash box (IYKYK). Here’s how to make sure your cash sweep program works for you — and why Robinhood Gold is a smart fit for whatever your financial strategy may be.
Not All Cash Sweep Programs Are Created Equal
A cash sweep program can offer more interest on your savings than a traditional savings account. But it’s important to compare your options. Some cash sweep programs require an account minimum, or else you might have to pay a fee. Others might make it tough to withdraw your money, or offer limited additional financial products. All of these barriers can make it tough to use your uninvested brokerage cash.
Robinhood, the investment and trading platform, offers Robinhood Gold, which provides a full suite of financial products you need, with the flexibility you require. And most importantly, it offers 4.5% APY on cash deposits — one of the highest interest rates available.
Interest That Adds Up
Interest rate matters because interest compounds, meaning that you earn interest on interest. Over time, that can help supercharge your savings. This is in addition to the interest you’re earning on your savings. You’ll get a boost from money you deposit, a direct deposit, wires, and even a Zelle or PayPal transfer.
Utilizing Robinhood Gold can help you know the money you earn — whether it’s from your day job, your gig work, or a combination of everything — is working as hard as you are.
Growing Your Money With Robinhood Gold
When it comes to your money, where you place it makes a huge difference. Investing can be great for longer-term goals, like finally buying a house or saving for retirement. But when you need money in the short term, it’s a good idea to park it somewhere it’s easily accessible. Utilizing a cash sweep program through Robinhood Gold allows you to keep your savings with other accounts you use, like for investing, so you have your money in one place.
Robinhood Gold differs from other cash sweep programs because the platform is also an investing app, with the flexibility you need to ensure your money is where it can grow the most. Beyond saving, you can also use Robinhood Gold to invest and even maximize your retirement goals with extra money from Robinhood Retirement — the only IRA with a boost on every eligible dollar. All of these tools can help you make the most of your money now, and for the future. Because, when you’re cobbling together gigs and saving for the next big dream, you need a savings solution as committed and creative as you are.
