Robinhood is once again trying its hand at banking.
The stock trading app said Tuesday it was launching a new product, called Cash Management, to allow users to earn 2.05% interest on uninvested cash in their Robinhood accounts.
The move comes 10 months after Robinhood’s efforts to offer checking and savings accounts failed after it wrongly assumed that cash in user accounts would be insured by the Securities Investor Protection Corp. Under the new program, uninvested cash will be deposited into partner banks, where it will be insured by the FDIC, the company said.
Robinhood’s efforts to woo savers come as banks, brokerages and other financial institutions battle for consumer dollars with higher interest rates and lower fees. Just last week, Charles Schwab, TD Ameritrade and E-Trade eliminated stock trading fees, matching Robinhood. And, the interest rate Robinhood is offering tops what rivals including online banks Ally and Goldman Sachs’s Marcus currently offer.
But even so, it’s not yet clear that Robinhood’s latest move will give it the edge in a crowded field.