Robinhood automatically moves uninvested cash in your account to partner banks or money market funds, where it may be eligible for FDIC insurance up to standard limits.
This analysis describes what Robinhood's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
Users should understand which banks receive their uninvested cash, the applicable FDIC coverage limits across program banks, and any money market fund risks, as these affect the safety and accessibility of idle funds.
Interpretive note: Specific program bank names, FDIC coverage calculations, and money market fund details are disclosed in separate program documents not analyzed here; the full financial risk profile of the sweep arrangement depends on those disclosures.
Uninvested cash in Robinhood accounts may be automatically swept to program banks or money market funds; FDIC coverage is available up to applicable per-bank limits, and the specific banks and terms are disclosed in separate program disclosures that users should review.
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"Robinhood may sweep your uninvested cash to one or more program banks or money market funds. Swept funds may be eligible for FDIC insurance up to applicable limits at each program bank. The specific program banks and applicable terms are disclosed in the applicable program disclosures.Excerpt from Robinhood's Margin Account Rules
REGULATORY LANDSCAPE: Cash sweep programs offered through broker-dealers engage SEC and FINRA oversight of customer cash handling, as well as FDIC rules governing deposit insurance eligibility for swept funds.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
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Users should understand which banks receive their uninvested cash, the applicable FDIC coverage limits across program banks, and any money market fund risks, as these affect the safety and accessibility of idle funds.
Uninvested cash in Robinhood accounts may be automatically swept to program banks or money market funds; FDIC coverage is available up to applicable per-bank limits, and the specific banks and terms are disclosed in separate program disclosures that users should review.
ConductAtlas has identified this type of provision across 231 platforms. See the full comparison.
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