Robinhood's new 3% cash back credit card

Finance
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Robinhood is now offering an uncapped 3% cash back card. Has anyone here gotten this card yet? This is the highest all-category card that I am aware of. I’m not familiar with the issuing bank (Coastal Community Bank), does anyone here have any past experience with them? I’m wondering how tolerant they will be of manufactured spending type activities.

Also, it is rumored that you will be able to deposit the cash back directly into a Roth IRA (coded as a bonus). This gives an additional tax benefit on top of the 3%.

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The card is discussed in this thread here on fragile deals

Fragiledeal thread

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It is indeed, and it’s a good idea to have a separate thread like this one.

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I certainly haven’t seen that rumor.

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Well now you have. I read about it on the 4chan finance board from some guy claiming that he works for robinhood. He explained that they are trying to poach people from Schwab and Schwabb allows Amex users to deposit the credit card rewards directly into a roth ira with no limit. I googled it and found that Schwab does indeed do this.

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I suspect it is like the Fidelity Visa (managed by ELAN). You can deposit rewards into any Fidelity account.

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Redeeming rewards into a Fidelity IRA is treated as a contribution. Apparently not with Schwab.

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Wow! Do they not allow you to contribute to an IRA?

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I don’t understand this question. Of course Schwab allows people to contribute to their IRA’s.

The Schwab credit card redemptions don’t get coded as contributions, but as interest based on the link in the past three comments up.

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Wish I phrased it better, but your adept answer handled it. I wondered if they truly did not allow you to contribute your bonus points to your IRA. The link that “I think” you referenced is for a Schwab Amex card, and how it relates to Roth IRAs.

I now wonder what they would do with your bonus if you did not have a cash account or Roth IRA…

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Why would anyone have a Schwab Amex if they don’t have any sort of Schwab investment account?

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I have no idea, but I did not say “any sort of” Schwab investment account. I said cash account or Roth IRA account.

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What is the relevance of having aa “cash account” or a “Roth IRA account” ?

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Apparently none. Never mind. :slight_smile: