The recent announcement of the Robinhood Gold Card has created a buzz in the credit card rewards space. This new card offers a generous 3% cash back on all eligible purchases, which is higher than any other credit card currently available. The big question on everyone’s mind is whether this card can compete with other major players in the industry such as Chase, Capital One, and American Express.
Upon closer inspection, it is evident that the Robinhood Gold Card does not have any major gotchas. It excludes certain types of transactions like balance transfers, cash advances, and gambling-related purchases, as is standard among credit cards. However, unlike some other high rewards credit cards, the Robinhood Gold Card does not have a cap on the spending that qualifies for the 3% cash back reward.
In terms of fees, the Robinhood Gold Card does not charge an annual fee, which is rare for a credit card with such lucrative cash back rewards. The only catch is that in order to qualify for the card, individuals must be a member of Robinhood’s Gold program, which costs $5 per month or $50 per year. This can be considered as an annual fee for the credit card, making it a reasonably priced option for those who can maximize its benefits.
The Robinhood Gold Program comes with additional features such as access to a high-yield savings account with a competitive interest rate of 5.0%. It also offers a 3% match on IRA contributions and transfers to an IRA for a limited time. These benefits are valuable for individuals who are already using or planning to use Robinhood’s trading platform. However, rewards earned on the card are paid in points and can only be redeemed for cash deposited into the Robinhood account.
Overall, the Robinhood Gold Card stands out as a strong competitor in the credit card rewards space. It offers the highest base rate of cash back rewards compared to other cards currently available. While it does require a membership fee for the Robinhood Gold program, this fee is reasonable considering the benefits that come with it. For individuals looking to maximize their credit card rewards on all purchases, the Robinhood Gold Card presents a compelling option.
