Why the Robinhood Gold Card Isn’t Really a 3% Cash-Back Card

For those who believe “cash is king,” you may have seen the new Robinhood Gold Card, which promises a stellar 3% cash back rate across all categories. With no bonus categories to remember, no annual fee, no foreign transaction fees, the Robinhood Gold card is, at minimum, an intriguing card to consider.

However, upon giving the card a closer look, the Robinhood Gold card doesn’t exactly provide the 3% cash-back return as headlines may promise. Here’s why that may be the case and the details you should know about the Robinhood Gold card.

Robinhood Gold Card Overview

With the launch of its first credit card, financial services startup Robinhood — best known for its commission-free trading app — is upending the cash-back card market. Prospective applicants can join the waitlist for the Robinhood Gold card right now.

You should also know that this card is explicitly for Robinhood Gold members. As the broker’s premium subscription plan, it costs $5 per month or $50 per year.

The card offers a generous 3% cash-back on all other categories and an impressive 5% cash-back when booking travel through the Robinhood travel portal.

In addition to its sturdy stainless steel build weighing 17 grams, which may impress some prospective consumers looking for a metal credit card, the Robinhood Gold Card is a Visa Signature card, which comes with the usual benefits such as travel protection and insurance coverage.

Here’s an overview of the noteworthy perks of the Robinhood Gold Card:

• Earns 3% cash-back on all purchases
• Get 5% cash-back when booking travel through the Robinhood travel portal
• Redeem points for travel, gift cards, or reinvest back into your Robinhood brokerage account — more on this below
• Travel and purchase protection benefits such as trip cancellation and interruption
• Return protection
• No foreign transaction fees
• No annual fee

What You Should Know About the Robinhood Gold Card

The Robinhood Gold card offers a range of distinctive advantages that set it apart from other options. Let’s take a closer look at these benefits.

1. High Cash-Back Rates

The Robinhood Gold card is known for its extraordinary 3% cash-back rate on all purchases. Although I still prefer to earn 5x points with The Platinum Card^® from American Express when booking travel through AmexTravel.com or directly with the airline (up to $500,000 on these purchases per calendar year, then 1x), it’s worth noting that cardholders can earn 5% cash back when booking travel through the Robinhood travel portal.

The majority of cash-back cards offer a maximum of 2% cash back on all non-bonus categories. However, the Robinhood Gold card stands out with its superior 3% cash-back rate, making it highly attractive to frequent spenders. With no limit to the amount of cash back you can earn, this card proves to be an impressive choice for everyday spending.

2. Rewards Can’t Be Redeemed for Pure Cash-Back

When it comes to redeeming rewards, cardholders have the following options:

• Reinvest cash-back into your Robinhood brokerage account
• Book travel through the Robinhood travel portal
• Shop at stores through the Robinhood shopping portal
• Buy virtual gift cards

All of these options will yield a set value of 1 cent per point. However, if you are looking for pure cash-back rewards, the only option is to redeem rewards for a statement credit on your Robinhood Gold card.

In the terms and conditions of the Robinhood Gold card, the company states, “The value of points redeemed for cash back is less than $.01 per point; see the Robinhood Credit Card App for details. If this option is available to you, it will be visible in the App. Visit the Rewards tab in the Robinhood Credit Card App for additional details.”

This statement indicates that redeeming rewards for a statement credit — the only real cash-back option — is not available to all users. Even worse, there’s no telling what the exact redemption value is.

3. No Annual Fee or Foreign Transaction Fee To Worry About

You don’t have to worry about an annual fee or those pesky foreign transaction fees with the Robinhood Gold card. This makes it a better value for maximizing rewards. If you travel a lot, not having to pay foreign transaction fees can be very useful.

Many popular cash-back cards, like the Chase Freedom Unlimited^® and the Blue Cash Preferred^® Card from American Express (rates & fees), charge fees when used outside of the U.S. With the Robinhood Gold Card, you can travel overseas without worrying about foreign transaction fees, plus you’ll receive 3% cash back on every purchase.

4. Visa Signature Perks

The Robinhood Gold card stands out among no-annual-fee cards by offering impressive ancillary benefits like travel insurance and purchase protections, thanks to its Visa Signature designation.

This card offers trip interruption protection that provides coverage of up to $2,000 per person for nonrefundable passenger fares. This coverage applies to various modes of transportation, including flights, trains, buses, and cruise ships. It is applicable in specific situations, such as the unfortunate event of the death of an immediate family member.

Furthermore, cardholders can have peace of mind knowing they are covered by a range of additional protections, such as purchase protection, extended warranty, return protection, and auto rental collision damage waiver.

Additional benefits include access to Visa Signature Concierge Service, roadside dispatch for unexpected car troubles, emergency assistance for when you’re on the go, and virtual card numbers for secure online and digital wallet transactions.

5. User-Friendly App

The Robinhood app is known for having an uncluttered and easy-to-use interface, and the card does the same. A single, user-friendly platform lets you manage your rewards, keep track of your spending, and invest.

The best thing about the app is that you can reinvest your earnings from the spending done on your Robinhood Gold card immediately from the app by converting your points into cash and depositing it into your Robinhood brokerage account. The cash back can then be automatically invested in stocks or cryptocurrencies, which adds an investment angle to your spending rewards.

6. Add Authorized Users of Any Age

One of the Robinhood Gold card’s most underrated features is the option to add an authorized user of any age to start building credit. Parents can add their son or daughter as an authorized user at any age and teach their children about healthy credit habits. This can start them off on the right financial path early on, unlike other issuers that require a higher minimum age of 13 or 18.

Adding a child as an authorized user creates a new account on their credit report, which then impacts their account history and details. That means they’ll be ahead of the curve for responsible credit habits (and a high credit score to boot!) by the time they can apply for their own credit line.

Final Thoughts

Overall, the new Robinhood Gold card is a strong rewards card, though it does not quite provide 3% cash-back as advertised. Take a closer look at your redemption options, and you’ll see why.

That said, Robinhood is a user-friendly app and investment platform. The card has no annual fee, making it a great choice for many people interested in re