Robinhood Gold Math

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Robinhood claims that they offer \(5\%\) APY by subscribing to Robinhood Gold at $5 per month. Meanwhile, Capital One offers \(4.3\%\) APY for free. Let us measure how much money we need to deposit in order for Robinhood to be more profitable.

Let \(x\) be the amount of money we have. By depositing \$X in Capital One, we have \(1.043x\) at the end of the year. If we deposited the same amount in Robinhood Gold, we will have \(1.05x-(12*5)\) at the end of the year. Solving for \(1.05x-60>1.043x\), we get \(x>8571.43\) [1]​.

So, if you have more than \$8600 in cash hanging around, Robinhood Gold makes more money than Capital One.

Date: 2023-12-03 Sun 00:00

Author: Adithya Bhat

Created: 2024-07-31 Wed 22:13