Robinhood Gold Card review: 3% cash back, but is it worth the membership fee?

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Robinhood recently announced the Gold Card, which offers an unparalleled 3% unlimited cash back on all purchases. This cash back rate is among the highest available on the market today.
The card's integration with the Robinhood investing platform allows users to invest their cash back rewards.

But there’s a catch. The Robinhood Gold Card is only available to Robinhood Gold members who pay a membership fee. 

This card is expected to launch later this year. But in the meantime, here’s everything you need to know about the Robinhood Gold Card and how it stacks up against the best cash back credit cards.

About the Robinhood Gold Card 

Robinhood, known for its commission-free trading platform, has expanded its product lineup over the past few years.   

The company made its first move into credit cards with the Robinhood Cash Card, a debit card that earns cash back rewards and incentivizes you to invest through its round-up investing feature. 

The Robinhood Gold Card takes this further, offering exclusive cash back perks to Robinhood Gold members. By becoming a Robinhood Gold member, you unlock access to a range of benefits, including:

• 5% APY on your uninvested cash balance 
• 3% match on eligible contributions to your Robinhood Independent Retirement Account 
• 1% deposit boost on all incoming deposits into your Robinhood account (coming soon)
• Access to Nasdaq Level 2 data and Morningstar research
• Access to lower interest rates on margin investing 

While the Robinhood Gold Card advertises itself as a no-annual-fee card, it's only available to Robinhood Gold members.

Membership costs up to $6.99 monthly for a 30-day subscription or up to $75 a year for an annual subscription, following a 30-day free trial. 

Here’s a closer look at the Robinhood Gold Card’s rewards and features. 

Robinhood Gold Card rewards

Unlimited cash back 

The standout feature of the Robinhood Gold Card is its flat 3% cash back rate on all purchases, with no limits or restrictions. This is an exceptional offer, surpassing many of the best cash back credit cards on the market.

The best flat-rate cash back cards, like the Wells Fargo Active Cash® Card, offer 2% back on your spending. Other cards may offer up to 6% cash back but have spending limits or category restrictions.

With the Robinhood Gold Card, you can earn unlimited cash back and do not have to worry about rotating categories.

In addition to the 3% base rate, the Robinhood Gold Card offers 5% cash back on travel booked through the Robinhood travel portal.

To put these rewards into perspective, let's say you spend $2,000 monthly. With the Robinhood Gold Card, you would earn $60 in cash back each month and $720 annually. With the Wells Fargo Active Cash, you would only earn $480 in cash back annually. 

Redeeming cash back rewards 

The Gold Card's redemption options are somewhat more limited than other cash back credit cards. Cardholders have four options for redeeming their cash back rewards:

• Deposit cash into your Robinhood Brokerage Account, which earns 5% APY
• Book travel via Robinhood's travel portal
• Shop for merchandise through Robinhood's "Shop" portal (via the Robinhood credit card app)
• Buy gift cards through Robinhood's portal

All redemptions are worth the same value — one point is worth 1 cent. 

For those who invest through Robinhood, the ability to direct rewards into their brokerage account can be a big advantage.

This feature allows you to grow your investments over time, using everyday spending to build wealth.

But, it can be fairly difficult to get straight cash back. Unlike most other cash back cards, there are no direct deposit or statement credit redemption options with the Gold Card. 

Robinhood Gold Card benefits

Beyond the impressive cash back rewards and Gold membership benefits, the Robinhood Gold Card offers a few other perks:

• Visa Signature perks, including zero liability protection, roadside assistance, purchase security, extended warranty protection, and access to Visa Signature's concierge service
• Trip interruption and cancellation coverage
• No foreign transaction fees

For a limited time, Robinhood offers a real 10-karat gold credit card to the first 5,000 people who join the waitlist and refer at least 10 people.

Are the Robinhood Gold Card’s rewards worth the fees?

To decide if the Robinhood Gold Card's rewards are worth the membership fees, it's essential to calculate your potential cash back earnings and compare them to the cost of the Robinhood Gold membership.

Cardholders must spend approximately $2,500 annually (at the 3% cash back rate) to offset this cost. The value of the other Robinhood Gold benefits, such as the higher APY on your cash balance and the deposit boost, may further justify the membership cost for some users.

Unlike many other cash back cards, the Robinhood Gold Card doesn’t offer a welcome bonus. This limits the first-year value for new cardholders. 

Alternatives to the Robinhood Gold Card

While the Robinhood Gold Card offers an impressive 3% unlimited cash back, it may not work for everyone. Some alternatives include the Wells Fargo Active Cash® Card and the Chase Freedom Unlimited®. 
 

Is the Robinhood Gold Card right for you? 

The Robinhood Gold Card is a good choice if you already use Robinhood or plan on signing up. If you want to maximize cash back without much effort, the Robinhood Gold Card could be an excellent addition to your wallet.  

However, the card’s lack of a welcome bonus, redemption inflexibility, and membership fee may be deterrents. If you want more flexibility in how you redeem rewards, you may want to consider other options. 

It's essential to assess your spending and determine whether the cash back earned will offset the membership cost.

To be eligible for the Robinhood Gold Card, applicants must have good to excellent credit (FICO score above 670) and an active Robinhood Gold membership. Right now, you can join the waitlist for this card — invitations to pre-approved members are expected to be sent in the coming months.

How we rated this card 

Every credit card review we publish has undergone a rigorous editorial process to ensure accuracy and objectivity.

We rate all credit cards on a 10-point system, with 10 being the highest possible score and 1 being the lowest possible score. We assess each card across several key factors, weighted based on what our research shows matters most to readers like you. Learn more about our methodology here.

Here are some of the factors that influenced this card’s overall score:

• Rewards: The Robinhood Gold Card offers an impressive 3% cash back on all purchases, with no limits or categories to track. This is one of the highest flat cash back rates available, making it a standout choice. Plus, cardholders can earn 5% cash back on travel booked through the Robinhood Travel Portal, boosting the card's rewards.
• Redemption flexibility: The Robinhood Gold Card offers several unique redemption options, including investing in a Robinhood brokerage account and making purchases in the Robinhood Travel and Shop portals. But, these options are somewhat limited compared to other cash back cards. The lack of a statement credit or direct deposit option may be a drawback for some.
• Annual fee: Although the Robinhood Gold Card itself doesn't charge an annual fee, it requires a Robinhood Gold membership, which costs $6.99 per month or $75 per year. 
• Benefits: The Robinhood Gold Card has a suite of Visa Signature benefits, including purchase protection, extended warranty coverage, and trip interruption insurance. The integration with the Robinhood investing platform and the potential to earn a solid gold card are unique benefits that may appeal to some.
• Welcome bonus: At the time of writing, the Robinhood Gold Card doesn't offer a welcome bonus, putting it at a disadvantage compared to many other cards that offer sign-up bonuses to new cardholders.
• Rates & other fees: The Robinhood Gold Card doesn’t charge foreign transaction fees, a plus for international travelers. However, there are some other fees, such as cash advance fees and late payment fees, which are common among credit cards.

The bottom line

The Robinhood Gold Card is a strong contender for Robinhood investors who want to earn high cash back on their everyday spending. Plus, the unique ability to deposit card rewards in your Robinhood brokerage account makes this card a solid option for investors.

Comparing the Robinhood Gold Card to other cash back cards can help you make a smart decision based on your spending habits and goals.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.