Robinhood Markets Inc HOOD offers interest rates on uninvested cash of 18 times the national savings rate.

What happened: Robin Hood behaved its “Robinhood Gold” interest rate at 4.15% APY, while the national average interest rate for savings accounts is 0.33%.

The retail broker said the new rate will go into effect Friday and will be available to new and existing gold customers who have signed up for Cash Sweep.

Robinhood’s cash sweep program automatically moves uninvested funds from brokerage accounts to deposit accounts at a network of six program banks. Cash deposited with these banks is covered by FDIC insurance up to a maximum of US$1.5 million.

With daily compounding, customers can earn even more income from their uninvested money, with no cap. Robinhood said the interest is paid monthly.

Robinhood Gold subscribers also get access to several other benefits such as: B. Larger instant deposits and margin investments of 7.25%.

With the last rate hike Robinhood, which was distributed by the Federal Reserve, said it was “doing what’s best for customers by passing on those savings.”

Continue reading: After this week’s Fed rate hike, job count surprise and key earnings reports, what’s next for the market?

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