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Robinhood to revamp checking, savings feature

Robinhood is revamping the marketing and the name of its new checking and savings program following criticism of the feature.

The stock-trading app recently announced plans to launch Robinhood Checking & Savings, a nonbank account with a 3% interest on deposits, in 2019. The company advertised the account as a way for retail investors to circumvent bank fees while achieving a higher interest rate. However, the head of the Securities Investor Protection Corp. said it would not insure the accounts because the money was not deposited for a protected purpose.

"We're excited and humbled by the response to yesterday's announcement of Robinhood's cash management program launching in 2019," the company said in a blog post. "However, we realize the announcement may have caused some confusion."

Robinhood said it will work with regulators as it prepares for the launch of the program, which it now referred to as a cash management program.