Robinhood brokerage app is leaping on the week-long promo pattern and simply teased Robinhood HOOD Week (“HOOD” is their inventory image) from October 16, 2024 to October 27, 2024. The entrance web page is imprecise however contained in the full phrases you possibly can see precisely what they are going to be providing. They’re nonetheless aggressively gathering property, and are rolling again out some very aggressive money bonuses while you switch in property from exterior brokerages:
- 1% bonus on ACATS transfers to your Robinhood joint or particular person investing account from an exterior brokerage. Two-year minimal maintain interval.
- 2% bonus on ACATS transfers with a margin stability of $10,000 or extra to your Robinhood joint or particular person investing account from an exterior brokerage. Two-year minimal maintain interval.
- 3% on ACATS transfers to your Robinhood IRA with a Robinhood Gold subscription, excluding rollovers. 5-year minimal maintain interval.
Hodl on, although! Transfers should be initiated between 12 AM ET on October 16, 2024 and 11:59 PM ET on October 27, 2024.
Robinhood can even reimburse as much as $75 in outgoing switch charges with transfers of $7,500 or extra. It is a one-time reimbursement per account kind, per exterior brokerage.
The asset retention requirement requires that you just preserve the transferred property in your Robinhood account for at the least 2 years for the 1% or 2% bonuses and 5 years for the three% bonus. In the event you withdraw property and the stability falls under the preliminary switch quantity, Robinhood reserves the suitable to cut back or revoke your bonus, in full or partially.
The two% bonus with margin balances is an fascinating new wrinkle, and it may very simply be value it “create” a margin stability forward of time in preparation for the promo week. You’d need to withdraw your money, after which purchase one thing on margin – even SGOV or one other Treasury Invoice ETF would work. Paying even 12% curiosity on $10,000 of margin for a whole month would solely be $100 of curiosity. An additional 1% on $100,000 transferred is value $1,000, an additional 1% of $1 million is $10,000, and so forth.
I didn’t even know you had been allowed to switch margin balances, however apparently that is without doubt one of the options of the ACATS system. I suppose it’s like a stability switch between bank cards, and Robinhood actually desires your interest-accruing debt.
I’ve already written a number of articles about previous flavors of those Robinhood promos, and I participated within the 3% IRA bonus beforehand. As all the time, learn via the phrases and perceive that you just’ll be locked into Robinhood for 2 to 5 years. Since I’m already partially locked-in, I’m pondering that new 2% margin switch bonus. 🤔
(Anybody perceive the which means of the cherry?)
