Just as millions of qualifying Americans are set to receive their $1,400 stimulus check from the federal government, Robinhood has unveiled a new perk, which offers cash bonuses for deposits.
Certain retail investors that use the Robinhood app can receive credits for depositing money into their account over the next two weeks. According to the “Robinhood Cash Rewards” program, eligible users can get cash amounts ranging from $10 for a $200 deposit to $250 for a deposit of at least $15,000. The offer is being unveiled despite Robinhood’s recent controversies, where the trading platform’s co-founder was questioned by lawmakers regarding certain features that gamify stock trading.
In response to the dubious feature, which also conveniently coincides with the federal government’s $1,400 stimulus check rollout, a Robinhood spokesperson defended the promotion, and said that it is not correlated with the ongoing stimulus program. She noted that the the trading platform provides such offers to its users on a regular basis, but stopped short of specifying previous instances when that has occurred.
Financial markets have been riddled with speculation that cryptocurrencies and stocks may soon be boosted upwards once the stimulus checks are distributed to individuals. Last year, during the first round of stimulus checks, US equities and digital currencies relished in a surge of retail trading activity, which sent stocks to new highs. Simultaneously, Robinhood benefited from an onslaught of new individual investors that flocked to the platform looking to burn through their stimulus payments.
Indeed, questions on how Americans will spend their latest (and likely final) stimulus check have been the main talking point among investors. According to a recent Bloomberg survey, 34% of respondents revealed they would save their “free money,” meanwhile the remainder said they would spend it in some way or another. About 6% respondents said they would invest in the stock market, and 3% noted they would put it into cryptocurrencies.
Information for this briefing was found via Robinhood and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.