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You Could Use Your Tax Return To Earn 5% APY On It With Robinhood Gold While You Sleep
--News Direct--By Faith Ashmore, BenzingaFor Americans, 2024 contains hope when it comes to tax returns. The IRS shared that as of February 16, the average
About this update from Robinhood Markets, Inc.
[{"type":"text","content":"--News Direct--By Faith Ashmore, BenzingaFor Americans, 2024 contains hope when it comes to tax returns. The IRS shared that as of February 16, the average tax refund is $3,207, which is 2.1% higher than last year. For millions of Americans, tax returns provide relief or are an opportunity to use the money for trips or gifts. As many households have been hit hard by rising inflation, tax returns may be especially coveted this year. But what if you were to use the return to help potentially build some wealth? Robinhood aims to provide a unique opportunity for individuals looking to invest. The company has recently made its subscription product, Robinhood Gold, even more enticing to users. Robinhood Gold subscribers now have the opportunity to earn a 5% annual percentage yield (APY) on uninvested brokerage cash with their cash sweep program. This means that any cash sitting idle in your Robinhood brokerage account will be automatically swept into a program that earns you interest. Robinhood says this new rate is eight times higher than the national average savings rate - based on data from Bankrate as of March 1, 2024. In other words, you can earn money while you sleep, and your money is FDIC-insured up to $2.25 million at partner banks. With this Gold subscription, users have the ability to make larger instant deposits and gain instant access to up to $50,000 in instant deposits. Typically, it takes a few days for deposited funds to become available for investment, but Gold subscribers can bypass this waiting period, allowing them to make opportune investment decisions and seize market opportunities without any delays.Subscribers to Robinhood Gold are also granted access to professional research from Morningstar (NASDAQ: MORN) and Level II market data from the Nasdaq Stock Exchange. Level II data provides investors with a comprehensive view of market activity, including bid and ask prices, market depth and order sizes. This additional information can prove invaluable for investors seeking a deeper understanding of market dynamics, in order to make more informed trading decisions.The benefits don’t end there. Robinhood Gold also offers margin investing at a lower rate of 8% – with the first $1,000 of margin borrowing being interest-free – which allows eligible users to borrow funds and increase their potential returns on investmen...