Robinhood Gold Card Review 2024 – Forbes Advisor – Technologist

Earning Rewards

Cardholders of the Robinhood Gold Card will receive 5% cashback per dollar spent on travel booked through the Robinhood travel portal and 3% cashback on all other purchases. The cash back you earn on your purchases is accrued as points. So, the advertised 3% cash back on purchases is three points per dollar, which can be redeemed in several ways including cash back. Most of your daily purchases are eligible to receive points, with a few exceptions. Some examples of ineligible purchases are lottery tickets, person-to-person payments and balance transfers, among others.

The earning structure is pretty straightforward, making it simple to accumulate a solid number of points on everyday spending.

Redeeming Rewards

There are several ways to redeem your points. No matter which redemption option you choose, your points have a value of $0.01. There aren’t any transfer partners or ways to increase your points’ valuation. However, you could see a better valuation when you transfer your points to your brokerage account and invest the cash back or keep it in your account to earn interest. You just have to be patient to see the increased value over time.

You can redeem as cash back in your Robinhood Brokerage Cash Account, for travel through the travel portal, to make purchases at select merchants through the shopping portal or to purchase virtual gift cards. For any of these options, you must install the latest version of the Robinhood Credit Card app on your phone. You are not able to redeem online. Note that even if you redeem for a statement credit on your account, this does not count toward your minimum payment due. If you close your account, you will have 90 days to redeem your points. After that, you will lose all earned points.

Rewards Potential

Forbes Advisor uses data from various government agencies to determine both baseline income and spending averages across various categories. The 70th percentile of wage earners bring in $118,438 annually and we base our sample household spending on that number.

The total annual earnings of 135,157 equals a cash value of $1,351.57 using the standard valuation of $0.01. If you transfer this into your brokerage account and let it earn the current APY, you could earn more in interest on that balance over two years without ever investing it. However, this includes some risk—the APY on uninvested cash can change at any time. And it will likely fall when the Fed lowers interest rates.

For a card with no annual fee, this is a phenomenal value. If you already pay the Robinhood Gold subscription fee, adding the Gold Card to your wallet is an easy choice. Even if you aren’t currently paying for the subscription fee, paying to be a Robinhood Gold subscriber seems more than worth it based on the rewards potential alone—apart from the other benefits the Gold membership gives you.