Brokerage platform Robinhood Markets is offering cash bonuses to select traders for new deposits. Known as ‘Robinhood Cash Rewards’ programme, eligible traders on the no-fee app can get up to 5 percent bonus in their accounts, ranging from $10 for a $200 deposit to $250 for a deposit of $15,000 or more. The program will continue for the next two weeks.
The ‘Robinhood Cash Rewards’ programme began the day Americans started receiving $1,400 stimulus checks. But, a
Robinhood spokesperson told
Bloomberg the offer was not connected to the stimulus package.
However, the “promotion is not available to the general public”, Robinhood website says, adding “to be eligible to receive a cash reward, you must be a direct recipient of the original email from Robinhood.”
The cash rewards will be automatically deposited to the users’ accounts from April 5 to April 9, 2021. However, while the cash reward can’t be withdrawn for 60 days after it has been granted, a user can still use it to invest.
This offer comes just weeks after lawmakers grilled Robinhood's co-founder, Vlad Tenev, for features on the app, which, critics said,
enticed users to trade excessively. Robinhood, in response, said that the platform did not encourage excessive trading.
The
stimulus cheques are aimed at softening the economic blow of the COVID-19 pandemic. Last week, US President Joe Biden had
signed the $1.9-trillion COVID-19 rescue package. The new bill aims to provide as many as 85 percent of US households direct payments of $1,400 per person. Individuals earning less than $75,000 will be considered eligible for the relief amount. With regard to married couples, those making less than $1,50,000 collectively would receive $1,400 per person. Those earning
more than the aforementioned income levels will receive lesser payments corresponding to their incomes. The benefit will be capped at $80,000 for individuals and $1,60,000 for married couples. Apart from the $1,400 direct payments, the package includes funding to distribute vaccines and reopening schools among others.
In the wake of these payments, there has been speculation that the value of stocks and cryptocurrencies could surge. The stimulus cheques last year, led to a huge rally in US equities and a surge in digital currencies.
