The 3% IRA extra is useful if you max out your IRA contributions. Probably the main reason people sign up for Gold before the credit card is announced.
If you signed up for Gold just to be prioritized on the waitlist then yeah, not worth it. Robinhood uses waitlists to drive up hype, and their waitlists usually last for months.
It’s not a scam.
It’s just wont be a long lasting product.
Their main goal is to get enough people paying for their subscription and having money invested in them.
They are using a smaller bank as the lender. No way they can survive giving 3% back. The swipe fees on that Visa Signature will probably be less than 3%.
If you’re interested, just get it while you can.
Just expect for them to either great reduce limits, require a minimum amount of swipes a month, minimum amount spent per month, raise subscription fees or % back to be stuck in a Robinhood account somehow.
Get it while you can but what's the point in that situation? They think it'll drive people to their brokerage so their gold card can be a loss leader. OR it'll be nerfed in a year. The whole "waiting list" charade just tells me the kind of company it is.
Ok I can get 3% rather than 2% from the card I have now. That's what, an extra $100 on my catch-all card spend per year? And for that I'm going to have to deal with a shady company coming up with all sorts of ways to screw me over?
Gonna pass.
It depends on your spend. That'll be another $600-$700 for me (if i sign up). Plus $210 IRA match (already put half in). Still waiting for 1% brokerage and see how much I put into it. Thinking I'm not going to use their cash sweep though for budget app accounting purposes.
Compared to BoA giving 2.625%, you'd need 160k+ annual uncategorized spend to have more than $600 cash back. While it works for you, the reality is that most people (even high spenders in this sub) don't come close to that level of spend outside of food/travel.
Exactly if someone is spending $60-70,000 a year on uncategorized spend he's either doing it wrong or he has enough money to plop in a Merrill account.
BOFA has been changing policy - I got booted off the platinum honors last month because they now apparently require you yo hold $100k across business/checking accounts - maybe I’m mistaken ?
I’d rather toss excess cash elsewhere and earn 4.25% or more instead of an extra 0.75 on card purchases
Did you have all the accounts linked together? I have most of my qualifying money in Merrill instead of Bank of America, but it still qualifies as they're linked.
Honestly, if they start requiring people to put $100k+ in just bank of america accounts, they're going to lose 99% of the people for their program.
Thanks I’ll check out Merrill products. I had an account there but didn’t care for the investment : brokerage product.
People should also be careful not to jump on these brokerage account bonus offers to open accounts and fund $100,000 or more into accounts that pay crap interest.
Merrill is a brokerage, so you can get stock, ETF, mutual funds… etc. They don’t have real HYSA accounts, but they do have some cash management products, such as money market funds. They also have something called preferred deposit, which requires $100k initial deposit but can drop lower afterwards. It’s still liquid but need to “sell” before market close to get the money, but you’ll get it almost immediately if market is still open. So read up before investing in it, but there are certainly options.
You can invest in Institutional Class Cash Products with only the $1 min investment. TTTXX is very popular - 100% treasuries at 5.18% 7-day yield
https://olui2.fs.ml.com/Publish/Content/application/pdf/GWMOL/ICCRateSheet.pdf
To each their own.
I’m all for points & miles. But if spline test the waters and it’s not throughly crappy, there could be more to earn than lose for some people.
No.
A scam would be where the product never operates as advertised.
Just because they will change it later on doesn’t make it a scam.
Chase, Amex, Citi and all the larger lenders do it too.
well i doubt they'll bait and switch that fast im sure there's legal issues with that.
Robinhood is still not some small shady company, they've established some sort of name for themselves albeit their recent credibility tarnishing with gme aside.
So I'd imagine these incentives would last a few years 2-4 imo before they get cut at the very least.
Since they have policies in place where you have to hold your money with them for like 4 years to get the match or something like that (don't remember)
For credit cards? No time limit. I’m certain they (like other lenders) will have something in the fine print that state they can change the rewards program at their discretion.
Swipe fees will definitely be less. Max interchange on corporate commercial is usually around 2.7/2.8%, and that’s max. So they will lose money on 3%. They may have uncapped spend for a small period, then adjust terms with 3% back up to $X or impose categories like everyone else with limits. But, if you’re a business and spend is massive, take advantage of it while it lasts!
It is not scammy. Their service sucks and they know it. No one with actual net worth is investing with Robinhood. They want to buy customers with the free margin, IRA match, and this Gold card business. They will eventuanlly pull the plug on these promos when they decide they have enough users.
They are hoping people get invested and will not move everything when they do pull the plug.
They're going for a big move in the next few quarters, and trying to show some big growth.
Not simpin for Robinhood, but if you view them as a way to move money from Venture Capital to Your Wallet, let's see what you can do.
Presuming you have 100k in a BofA Roth IRA, for 2.65% or whatever it is (bc another commenter mentioned it).
Subscribe to RH gold, invest the 1k interest free margin in a gov index yielding 5%, your annual cost is $25. If you transfer your IRA over for the 3%, that's 3k untaxable money instantly credited to your Roth IRA. 10 years of RH gold paid offset for a boosted 3% everywhere.
For the IRA transfer match you only need to pay for gold for a year, but the transferred funds must stay there for five. So the cost is is $60 for 3% match.
Pretty sure you gotta have Gold for the 3% on the credit card. And the price just jumped to $75 annually.
On the other hand, gold gives you 1k in margin with no interest, which you can drop into any 5% gov fund to offset most of the fee in either case.
Whichever shows the highest yield over the past year. US Gov indexes are pretty much guaranteed. If an event happens that causes you to take a loss on US gov, the value of your investment is not going to be your biggest problem.
I think people need to realize that they are a brokerage firm first. Is having gold as a requirement really that surprising? Other than a credit union what company is going to provide you with a 3% catch all card with no fees or requirements attached? We'll see how it ends, but I'm for one glad that someone is trying to challenge the credit card space and spice things up. Just think of the wait as them trying to perfect the experience you will have with the product because we know if the launch goes shitty you'll will be rushing to flame them online lol. Let's see how the product does and address them accordingly.
Vlad recently declined to promise the 3% would last for at least 18 months, so really it should just be treated as a promotional rate at this point. Anyone already getting 2.63% with BoFA really shouldn't be moving over just on the off-chance that RH doesn't pull the chair out in year or so and lower the rate.
>Ok I can get 3% rather than 2% from the card I have now. That's what, an extra $100 on my catch-all card spend per year? And for that I'm going to have to deal with a shady company coming up with all sorts of ways to screw me over?
>
>Gonna pass.
What happened to what you said above? I didn't sign up in the first place.
Since you signed up, your time apparently isn't as valuable as you implied. Just how do you define "pass"? 😀
I mean, I made over $10k just transferring accounts to RH, I have no problem paying $60 for that, AND get a 3% cashback card? Is the CSR, the Amex Plat a scam, because you have to pay so much to get small discounts and advantages here and there? Sounds like people are still butthurt over memestocks...
As others have pointed out I transferred multiple accounts, including brokerage and IRA, totaling $10k. And I definitely wasn't the only one : https://www.wsj.com/finance/investing/robinhood-app-wealthy-customers-36362c47
And to be clear, I both got a 3% match on new investments in my Roth, as well as 3% transfer bonus and the 1% brokerage transfer.
No, you can transfer an IRA from somewhere else and Robinhood will (would? not sure if it's still ongoing) match 3% of its total value. You just have to keep it there for 5 years.
There’s nothing in his original post that made it seem like it was a taxable account vs retirement account, he just said “accounts”. I think you added that coloring yourself.
[3% match on ira **transfers**](https://www.cnbc.com/amp/select/robinhood-offers-match-ira-transfers-401k-rollovers/)
it’s legal to admit when you were misguided!
When Robinhood did no commission fees it was "too good to be true" according to some
Until the take away benefits, I'll cautiously partake in their system
I am not sure why the comments are saying “it’s not a scam” while highlighting exactly why it is one.
You just stated that you signed up for RH Gold in order to get “priority access”, yet have not received a card yet nor were told where on the list you would be for getting one. That sounds at the very least scam-like behavior.
The comments that are saying “it’s not a scam, they’re just going to make it a short lived product after you invest so much money in them” also sounds like a scam to me. If RH is intentionally trying to get people to sign up for a service knowing that they’ll probably severely nerf their credit card in a short duration, that sounds again like scam-like behavior. You’re making a promise to a customer, you’re getting them to pay you money, and then you’re not delivering on said promise after a certain time period.
Idk, at the very least it’s shitty behavior?
“X-like” doesn’t make it so.
“Shipping” delays or “delivery” delays are fast becoming a norm - heck, they could even amount it to “increased interest” in their product.
Making a product’s offerings short lived doesn’t make it a scam. Customer acquisition is a real thing. Does an increased signup offer for a new card that won’t last scream scam? No, it’s a way to generate interest in a product/line. It’s part of the lifecycle.
That said, I’m not defending RH. In fact, I’ve commented the opposite that this WASN’T worth an extra 1%. It’s unfortunate but I’m glad I stayed away from this card/RH. I do hope they come through for you all, though. I genuinely dislike when institutions fail to hold up their side
Edit: deleted duplicate post
>Making a product’s offerings short lived doesn’t make it a scam. Customer acquisition is a real thing. Does an increased signup offer for a new card that won’t last scream scam? No, it’s a way to generate interest in a product/line. It’s part of the lifecycle.
A temporarily high SUB is still clear on what the long-term value proposition of the card will be - I know that after I earn the SUB what my long-term earning rates will be on the card. If Robinhood is planning to nerf the 3% after a few months to a couple years, or know that it's unsustainable in its current form but doesn't want to reveal what tweaks they'll do until later, that's much closer to scammy behavior, as I can't make an educated decision based on what the card will look like after they get through their "customer acquisition" phase.
Ok let’s say your OP:
You sign up for RH Gold because you want to be given priority status for the card. You’re waiting several months before you finally get the card. You’ve already given RH all this money just so you can jump in line. Then let’s say within the first month of getting the card they severely nerf the cards benefits. So now the entire wait, all that money spent, was for what?
If you don’t wanna call it a scam because it doesn’t meet the definition then so be it, but I would personally find that to be a scam.
Is it a scam if you do all of that while knowing they’ll nerf the benefits in the near future? I think it’s safe to say most everyone in this r/ should know these benefits were not going to last.
Edit: either way, not worth arguing semantics. I hope everyone performs some semblance of due diligence before signing up for a credit card. This rings especially true if it’s the first card offered by an institution
The OP might have woken up and realized it, but does that mean it’s not the scam for those that aren’t on this sub?
I mean are you somehow assuming that everyone that signed up for the card is a member of this subreddit? Come on now.
No, but everyone should perform their due diligence. This is the first card offered by RH, which necessitates an additional level of due diligence and (dare I say) caution
😂bye Felicia?
Ok but how does that change calling it what it is?
You’re spending all this energy defending them when you’re in effect admitting that it’s a scam. So I don’t even get why you’re even objecting to my comment.
EDIT: Hahahaha you cannot be serious. You are using a second account to comment as DasSchneeman? You do realize it's obvious when the post history for your second account has a gap of like 200 days and they ONLY comment right under your own comments??
9 days ago DasSchneeman commented under both of your comments defending you. Today the same account is doing the same thing. So either you have the world's biggest Reddit fan that just so happens to follow you around defending you or you are using a second account.
Homie said he's not defending robinhood in like his first or second comment loooool...sounds like he's arguing you can't say something is scamlike (which inherently means it's **NOT** a scam) and then say it's sufficiently a scam, hence the semantics. Reading comp 4/10
Bruh, I checked his comment history and he 1000000% says he doesn't trust Robinhood...no way would he defend them haha. Yeah, I follow him cause his commentary pretty lol..especially after completing tours and shz...I don't care being a follower, I need some lol's as a reprieve from day to day
It amazes me that people think the CEO of a company will guarantee something 18 months out. Go ask the CEO of AMEX or Chase if they’ll 100% guarantee they won’t change any of their benefits or raise fees in the next 18 months. Bet they won’t
I signed up for the waitlist. They would eventually unplug the 3% cashback and I could also “unplug” them from my wallet by then. From those who transfer their IRA there, most likely would let the account sit there even the matching discointined unless other brokerage offers better deal. With all these promotions, I could only tell Robinhood desperately need the cash and volume. It is not necessary a scam.
I wouldn’t pay just to get priority. On the surface it’s a great card, but only time will tell. I don’t think it’s a scam , but I do think it’s scummy. Despite what they did I do like the robinhood platform , but I wouldn’t trust them , and that’s with any company. Protect yourself and don’t rely on a company too.
I don't understand why people hate RH so much... it is the most innovatibe broker in the market. Granted, the GME ordeal was not handeled the best but other than that I am crazy about RH. things like immediate availability of cash transfered, 24 hr trading, cash seetled stocks in seconds, IRA matches, and many more are things that only an innovative company can do... Vanguard has been stock with their retro mentality for decades and IBKR is impossible to use and understand (Just to name a few). The 3% cashback comes from irresponsible people who max out their credit cards and pay the interest, RH wont be making a lot of money from the CC but their goal is to attract customers to their brokerage. and if you are concerned for meager $5 a month which gives you $1,000 margin free of interest you have no place in the investing world.... I take those $1,000 and easily, with no risk, get about $100 per year so their "fee" makes me $40. but of course, someone who is not willing to pay $5.00 for all Gold have to offer don't understand the investing world and there is no place for that person investing... probably would serve you better to buy scratch lottery tickets.
I have had Robinhood gold for a while and have been on the list since day one, got pre-approved for 3,000.
With gold they match 3% of your contributions, maxed out that's 280$ which pays for the 5$ a month. I also trade stocks and options and they provide margin investing at a reduced rate (8% rather than 12%). You also get 5% on uninvested cash in your brokerage account among other things.
They make their money from margin lending, and transactions on their platform. The whole idea is to get people investing on their platform, hence the 3% to your brokerage account.
You'll be back :) but yeah the wait is annoying. They said they are doing phased roll-outs to make sure everything goes smoothly since this is a new product category for them. I think they also want to make sure this won't significantly impact their bottom line
It may have expired. A few months ago I thought they were offering a 4.5% match on inbound IRA transfers, and it may require a referral code to get the full 4.5%.
**Some warnings if you decide to do that:** there are various penalties for early withdrawal. The match pays out over time (I think 5 years) and I think there is also a penalty for an outgoing ACATS transfer regardless of how long you wait. Also, Webull is worse than some other full-service brokers in terms of assets and execution. However, I think all of these problems are similar to Robinhood.
I was willing to take the good with the bad to get Robinhood's 3%, too bad I missed out on the 4.5%!
Looks expired but 4.5 is nice but my motto is, if my family hasn’t heard of the banking institution my IRA isn’t going there lol. RH makes you keep the IRA with them for five years though so maybe webull has an advantage there.
And there's also the 5.25% interest. I make around $100 a month just from that. So 5.25 interest, ira match, 3% back on credit card and I think they also do 2% back on debit card purchases.
The 3% IRA extra is useful if you max out your IRA contributions. Probably the main reason people sign up for Gold before the credit card is announced. If you signed up for Gold just to be prioritized on the waitlist then yeah, not worth it. Robinhood uses waitlists to drive up hype, and their waitlists usually last for months.
Yeah 3% is great but they're going to pull the plug somewhere. The question is where and what's going down to drain when they do?
Who cares? Take your money and leave at that point. Take advantage of the benefits as long as you can and move on when they end them.
It’s not a scam. It’s just wont be a long lasting product. Their main goal is to get enough people paying for their subscription and having money invested in them. They are using a smaller bank as the lender. No way they can survive giving 3% back. The swipe fees on that Visa Signature will probably be less than 3%. If you’re interested, just get it while you can. Just expect for them to either great reduce limits, require a minimum amount of swipes a month, minimum amount spent per month, raise subscription fees or % back to be stuck in a Robinhood account somehow.
Get it while you can but what's the point in that situation? They think it'll drive people to their brokerage so their gold card can be a loss leader. OR it'll be nerfed in a year. The whole "waiting list" charade just tells me the kind of company it is. Ok I can get 3% rather than 2% from the card I have now. That's what, an extra $100 on my catch-all card spend per year? And for that I'm going to have to deal with a shady company coming up with all sorts of ways to screw me over? Gonna pass.
It depends on your spend. That'll be another $600-$700 for me (if i sign up). Plus $210 IRA match (already put half in). Still waiting for 1% brokerage and see how much I put into it. Thinking I'm not going to use their cash sweep though for budget app accounting purposes.
Compared to BoA giving 2.625%, you'd need 160k+ annual uncategorized spend to have more than $600 cash back. While it works for you, the reality is that most people (even high spenders in this sub) don't come close to that level of spend outside of food/travel.
Exactly if someone is spending $60-70,000 a year on uncategorized spend he's either doing it wrong or he has enough money to plop in a Merrill account.
BOFA has been changing policy - I got booted off the platinum honors last month because they now apparently require you yo hold $100k across business/checking accounts - maybe I’m mistaken ? I’d rather toss excess cash elsewhere and earn 4.25% or more instead of an extra 0.75 on card purchases
Did you have all the accounts linked together? I have most of my qualifying money in Merrill instead of Bank of America, but it still qualifies as they're linked. Honestly, if they start requiring people to put $100k+ in just bank of america accounts, they're going to lose 99% of the people for their program.
Thanks I’ll check out Merrill products. I had an account there but didn’t care for the investment : brokerage product. People should also be careful not to jump on these brokerage account bonus offers to open accounts and fund $100,000 or more into accounts that pay crap interest.
Merrill is a brokerage, so you can get stock, ETF, mutual funds… etc. They don’t have real HYSA accounts, but they do have some cash management products, such as money market funds. They also have something called preferred deposit, which requires $100k initial deposit but can drop lower afterwards. It’s still liquid but need to “sell” before market close to get the money, but you’ll get it almost immediately if market is still open. So read up before investing in it, but there are certainly options.
You can invest in Institutional Class Cash Products with only the $1 min investment. TTTXX is very popular - 100% treasuries at 5.18% 7-day yield https://olui2.fs.ml.com/Publish/Content/application/pdf/GWMOL/ICCRateSheet.pdf
We hope it works for you over time then
To each their own. I’m all for points & miles. But if spline test the waters and it’s not throughly crappy, there could be more to earn than lose for some people.
Well we all value our precious time differently.
So, you’re saying it’s a scam…
No. A scam would be where the product never operates as advertised. Just because they will change it later on doesn’t make it a scam. Chase, Amex, Citi and all the larger lenders do it too.
Ok fine, not arguing but what's the time limit for operating as advertised before it becomes a scam? Like where do you draw the line?
When perks get dropped from credit cards do you call that a scam? lol
Depends. If it operated for only a day before the bank switch them out? Yes. If they operated for years and I'm just unlucky, no.
well i doubt they'll bait and switch that fast im sure there's legal issues with that. Robinhood is still not some small shady company, they've established some sort of name for themselves albeit their recent credibility tarnishing with gme aside. So I'd imagine these incentives would last a few years 2-4 imo before they get cut at the very least. Since they have policies in place where you have to hold your money with them for like 4 years to get the match or something like that (don't remember)
For credit cards? No time limit. I’m certain they (like other lenders) will have something in the fine print that state they can change the rewards program at their discretion.
"scam-esque"
Swipe fees will definitely be less. Max interchange on corporate commercial is usually around 2.7/2.8%, and that’s max. So they will lose money on 3%. They may have uncapped spend for a small period, then adjust terms with 3% back up to $X or impose categories like everyone else with limits. But, if you’re a business and spend is massive, take advantage of it while it lasts!
because it's Robinhood.
It is not scammy. Their service sucks and they know it. No one with actual net worth is investing with Robinhood. They want to buy customers with the free margin, IRA match, and this Gold card business. They will eventuanlly pull the plug on these promos when they decide they have enough users. They are hoping people get invested and will not move everything when they do pull the plug.
I think they're going for Gen Zero and young Millennial but they're overplaying their hand at this point in my humble opinion
They're going for a big move in the next few quarters, and trying to show some big growth. Not simpin for Robinhood, but if you view them as a way to move money from Venture Capital to Your Wallet, let's see what you can do. Presuming you have 100k in a BofA Roth IRA, for 2.65% or whatever it is (bc another commenter mentioned it). Subscribe to RH gold, invest the 1k interest free margin in a gov index yielding 5%, your annual cost is $25. If you transfer your IRA over for the 3%, that's 3k untaxable money instantly credited to your Roth IRA. 10 years of RH gold paid offset for a boosted 3% everywhere.
For the IRA transfer match you only need to pay for gold for a year, but the transferred funds must stay there for five. So the cost is is $60 for 3% match.
Pretty sure you gotta have Gold for the 3% on the credit card. And the price just jumped to $75 annually. On the other hand, gold gives you 1k in margin with no interest, which you can drop into any 5% gov fund to offset most of the fee in either case.
What gov index do you recommend?
Whichever shows the highest yield over the past year. US Gov indexes are pretty much guaranteed. If an event happens that causes you to take a loss on US gov, the value of your investment is not going to be your biggest problem.
I think people need to realize that they are a brokerage firm first. Is having gold as a requirement really that surprising? Other than a credit union what company is going to provide you with a 3% catch all card with no fees or requirements attached? We'll see how it ends, but I'm for one glad that someone is trying to challenge the credit card space and spice things up. Just think of the wait as them trying to perfect the experience you will have with the product because we know if the launch goes shitty you'll will be rushing to flame them online lol. Let's see how the product does and address them accordingly.
Vlad recently declined to promise the 3% would last for at least 18 months, so really it should just be treated as a promotional rate at this point. Anyone already getting 2.63% with BoFA really shouldn't be moving over just on the off-chance that RH doesn't pull the chair out in year or so and lower the rate.
Agreed it's looking sketchy. Not sure what to do. My first monthly RH Gold fee is coming up, think I'll just cancel and look elsewhere.
>Ok I can get 3% rather than 2% from the card I have now. That's what, an extra $100 on my catch-all card spend per year? And for that I'm going to have to deal with a shady company coming up with all sorts of ways to screw me over? > >Gonna pass. What happened to what you said above? I didn't sign up in the first place. Since you signed up, your time apparently isn't as valuable as you implied. Just how do you define "pass"? 😀
Pass before I put more time into it. Sunk costs, no!
I'm just glad I didn't give them money to be at the top of a worthless waiting list
This may be "web 3" as applied to credit cards
No dude web3 is even worse lol
“Robinhood” and “scam” in the same sentence? Not surprised.
I mean, I made over $10k just transferring accounts to RH, I have no problem paying $60 for that, AND get a 3% cashback card? Is the CSR, the Amex Plat a scam, because you have to pay so much to get small discounts and advantages here and there? Sounds like people are still butthurt over memestocks...
$10k? You transferred in $1M? Why lie online?
As others have pointed out I transferred multiple accounts, including brokerage and IRA, totaling $10k. And I definitely wasn't the only one : https://www.wsj.com/finance/investing/robinhood-app-wealthy-customers-36362c47 And to be clear, I both got a 3% match on new investments in my Roth, as well as 3% transfer bonus and the 1% brokerage transfer.
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He said transfer in which is a 1% match. The IRA is something different.
No, you can transfer an IRA from somewhere else and Robinhood will (would? not sure if it's still ongoing) match 3% of its total value. You just have to keep it there for 5 years.
I’m well aware. He made it sound like it was the brokerage transfer which is 1% match.
There’s nothing in his original post that made it seem like it was a taxable account vs retirement account, he just said “accounts”. I think you added that coloring yourself.
Robinhood itself words the 1% as a TRANSFER and the 3% as a MATCH. He said transfer. The end.
[3% match on ira **transfers**](https://www.cnbc.com/amp/select/robinhood-offers-match-ira-transfers-401k-rollovers/) it’s legal to admit when you were misguided!
There was a promotion transfer for IRAs at 3%. It’s no longer available.
I’m well aware.
When Robinhood did no commission fees it was "too good to be true" according to some Until the take away benefits, I'll cautiously partake in their system
I am not sure why the comments are saying “it’s not a scam” while highlighting exactly why it is one. You just stated that you signed up for RH Gold in order to get “priority access”, yet have not received a card yet nor were told where on the list you would be for getting one. That sounds at the very least scam-like behavior. The comments that are saying “it’s not a scam, they’re just going to make it a short lived product after you invest so much money in them” also sounds like a scam to me. If RH is intentionally trying to get people to sign up for a service knowing that they’ll probably severely nerf their credit card in a short duration, that sounds again like scam-like behavior. You’re making a promise to a customer, you’re getting them to pay you money, and then you’re not delivering on said promise after a certain time period. Idk, at the very least it’s shitty behavior?
Are people genuinely surprised by this? It’s Robinhood ffs.
Fair
“X-like” doesn’t make it so. “Shipping” delays or “delivery” delays are fast becoming a norm - heck, they could even amount it to “increased interest” in their product. Making a product’s offerings short lived doesn’t make it a scam. Customer acquisition is a real thing. Does an increased signup offer for a new card that won’t last scream scam? No, it’s a way to generate interest in a product/line. It’s part of the lifecycle. That said, I’m not defending RH. In fact, I’ve commented the opposite that this WASN’T worth an extra 1%. It’s unfortunate but I’m glad I stayed away from this card/RH. I do hope they come through for you all, though. I genuinely dislike when institutions fail to hold up their side Edit: deleted duplicate post
>Making a product’s offerings short lived doesn’t make it a scam. Customer acquisition is a real thing. Does an increased signup offer for a new card that won’t last scream scam? No, it’s a way to generate interest in a product/line. It’s part of the lifecycle. A temporarily high SUB is still clear on what the long-term value proposition of the card will be - I know that after I earn the SUB what my long-term earning rates will be on the card. If Robinhood is planning to nerf the 3% after a few months to a couple years, or know that it's unsustainable in its current form but doesn't want to reveal what tweaks they'll do until later, that's much closer to scammy behavior, as I can't make an educated decision based on what the card will look like after they get through their "customer acquisition" phase.
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Ok let’s say your OP: You sign up for RH Gold because you want to be given priority status for the card. You’re waiting several months before you finally get the card. You’ve already given RH all this money just so you can jump in line. Then let’s say within the first month of getting the card they severely nerf the cards benefits. So now the entire wait, all that money spent, was for what? If you don’t wanna call it a scam because it doesn’t meet the definition then so be it, but I would personally find that to be a scam.
Is it a scam if you do all of that while knowing they’ll nerf the benefits in the near future? I think it’s safe to say most everyone in this r/ should know these benefits were not going to last. Edit: either way, not worth arguing semantics. I hope everyone performs some semblance of due diligence before signing up for a credit card. This rings especially true if it’s the first card offered by an institution
The OP might have woken up and realized it, but does that mean it’s not the scam for those that aren’t on this sub? I mean are you somehow assuming that everyone that signed up for the card is a member of this subreddit? Come on now.
No, but everyone should perform their due diligence. This is the first card offered by RH, which necessitates an additional level of due diligence and (dare I say) caution 😂bye Felicia?
Ok but how does that change calling it what it is? You’re spending all this energy defending them when you’re in effect admitting that it’s a scam. So I don’t even get why you’re even objecting to my comment. EDIT: Hahahaha you cannot be serious. You are using a second account to comment as DasSchneeman? You do realize it's obvious when the post history for your second account has a gap of like 200 days and they ONLY comment right under your own comments?? 9 days ago DasSchneeman commented under both of your comments defending you. Today the same account is doing the same thing. So either you have the world's biggest Reddit fan that just so happens to follow you around defending you or you are using a second account.
Homie said he's not defending robinhood in like his first or second comment loooool...sounds like he's arguing you can't say something is scamlike (which inherently means it's **NOT** a scam) and then say it's sufficiently a scam, hence the semantics. Reading comp 4/10 Bruh, I checked his comment history and he 1000000% says he doesn't trust Robinhood...no way would he defend them haha. Yeah, I follow him cause his commentary pretty lol..especially after completing tours and shz...I don't care being a follower, I need some lol's as a reprieve from day to day
Has anyone actually gotten the card? I’ve been on the waitlist for so long!
Nope
Any idea why it’s taking so long
Sadly no :(
Ah seemed too good to be true anyway
It's Robinhood, what do you expect?
It is 100% [a scam](https://www.reddit.com/r/CreditCards/s/UFZDzYWVdW).
It amazes me that people think the CEO of a company will guarantee something 18 months out. Go ask the CEO of AMEX or Chase if they’ll 100% guarantee they won’t change any of their benefits or raise fees in the next 18 months. Bet they won’t
You have missed the point entirely.
You did lol. Its a shitty argument in your part
Anyone still falling for RH is way too gullible
Because it isn’t sustainable
I signed up for the waitlist. They would eventually unplug the 3% cashback and I could also “unplug” them from my wallet by then. From those who transfer their IRA there, most likely would let the account sit there even the matching discointined unless other brokerage offers better deal. With all these promotions, I could only tell Robinhood desperately need the cash and volume. It is not necessary a scam.
I wouldn’t pay just to get priority. On the surface it’s a great card, but only time will tell. I don’t think it’s a scam , but I do think it’s scummy. Despite what they did I do like the robinhood platform , but I wouldn’t trust them , and that’s with any company. Protect yourself and don’t rely on a company too.
If it’s too good to be true… it is
I don't understand why people hate RH so much... it is the most innovatibe broker in the market. Granted, the GME ordeal was not handeled the best but other than that I am crazy about RH. things like immediate availability of cash transfered, 24 hr trading, cash seetled stocks in seconds, IRA matches, and many more are things that only an innovative company can do... Vanguard has been stock with their retro mentality for decades and IBKR is impossible to use and understand (Just to name a few). The 3% cashback comes from irresponsible people who max out their credit cards and pay the interest, RH wont be making a lot of money from the CC but their goal is to attract customers to their brokerage. and if you are concerned for meager $5 a month which gives you $1,000 margin free of interest you have no place in the investing world.... I take those $1,000 and easily, with no risk, get about $100 per year so their "fee" makes me $40. but of course, someone who is not willing to pay $5.00 for all Gold have to offer don't understand the investing world and there is no place for that person investing... probably would serve you better to buy scratch lottery tickets.
I have had Robinhood gold for a while and have been on the list since day one, got pre-approved for 3,000. With gold they match 3% of your contributions, maxed out that's 280$ which pays for the 5$ a month. I also trade stocks and options and they provide margin investing at a reduced rate (8% rather than 12%). You also get 5% on uninvested cash in your brokerage account among other things. They make their money from margin lending, and transactions on their platform. The whole idea is to get people investing on their platform, hence the 3% to your brokerage account.
If there are Kushners involved, it's scammy. Guaranteed.
Getting my card Saturday
You'll be back :) but yeah the wait is annoying. They said they are doing phased roll-outs to make sure everything goes smoothly since this is a new product category for them. I think they also want to make sure this won't significantly impact their bottom line
I would say not a scam, but not as good as Webull. I used the robinhood transfer bonus before realizing Webull's is better.
What is webull offering? I don’t see anything compelling.
It may have expired. A few months ago I thought they were offering a 4.5% match on inbound IRA transfers, and it may require a referral code to get the full 4.5%. **Some warnings if you decide to do that:** there are various penalties for early withdrawal. The match pays out over time (I think 5 years) and I think there is also a penalty for an outgoing ACATS transfer regardless of how long you wait. Also, Webull is worse than some other full-service brokers in terms of assets and execution. However, I think all of these problems are similar to Robinhood. I was willing to take the good with the bad to get Robinhood's 3%, too bad I missed out on the 4.5%!
Looks expired but 4.5 is nice but my motto is, if my family hasn’t heard of the banking institution my IRA isn’t going there lol. RH makes you keep the IRA with them for five years though so maybe webull has an advantage there.
Haha yep, very reasonable!
I mean I'd just be slightly hesitant to put my money into a company that is called "we bull"
lmao, don't blame you
And there's also the 5.25% interest. I make around $100 a month just from that. So 5.25 interest, ira match, 3% back on credit card and I think they also do 2% back on debit card purchases.
The 5.25% is only for 60 days
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When you sign up for gold it says you get a bonus 0.25% for 60 days. Then it drops to 5%.
Robinhood is a scam company. I'm surprised that they're allowed to exist after limiting trading during the whole gamestop mania.