Is Wells Fargo Active Cash Losing Its Shine? Robinhood Gold Card Offers 3% Cash Back on All Purchases – CNET

BySaadat Qureshi
04/04/2024 | (Last Updated on 04/04/2024)

4 Min Read | Fact Checked

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Robinhood Gold Card vs. Wells Fargo Active Cash: A Battle of the Titans

When it comes to managing your finances, simplicity is key. That's why the Wells Fargo Active Cash® Card, with its straightforward flat-rate rewards structure, has been a favorite among many. However, a new contender has entered the ring, challenging the gold standard in credit cards.

The Robinhood Gold Card, recently unveiled, boasts an impressive 3% cash back on all purchases and a lucrative 5% cash back on travel bookings made through the Robinhood travel portal. This puts it ahead of the Active Cash card, which recently received a prestigious CNET Editors’ Choice award for its competitive rewards program and user-friendly features.

But here's the catch: to be eligible for the Robinhood Gold Card, you must be a Robinhood Gold member, which comes at a monthly cost of $5. While this translates to an annual fee of $60, opting for an annual payment plan reduces the cost to $50, saving you $10. While this fee isn't exorbitant, it begs the question – is it worth it when many 2% flat-rate cards don't charge an annual fee?

Do the Math: Earning Potential with Robinhood Gold vs. Wells Fargo Active Cash

If we look solely at flat-rate rewards, the Robinhood Gold Card has the potential to outshine its competitors once you reach a certain spending threshold.

Let's say you spend $1,000 per month with a 2% flat-rate card like the Active Cash. Over the course of a year, you could earn $240 in rewards. In comparison, using the Robinhood Gold Card with a 3% flat-rate rewards program would net you $360 annually. After deducting the $50 annual membership fee, your total earnings would amount to $310 – $70 more than what you would earn with a 2% flat-rate card.

However, if your monthly spending is less than $400, the Active Cash card would be more lucrative (assuming you pay the $50 annual Robinhood Gold membership fee).

• Credit Cards
• $200 monthly spend
• $400 monthly spend
• $1,000 monthly spend
• $2,000 monthly spend

Considering Additional Benefits and Welcome Bonuses

Aside from the flat rewards rates, it's essential to evaluate the other perks each card offers. While the Robinhood Gold Card may offer higher returns, the Active Cash card provides an enticing welcome bonus that can earn you an extra $200 in cash rewards after spending $500 within the first three months of opening your account. When factoring in this bonus, the scales tilt slightly in favor of the Active Cash card.

Take a look at how much you can potentially earn in rewards in the first year, factoring in annual fees and welcome bonuses:

• Credit Cards
• $200 monthly spend
• $400 monthly spend
• $1,000 monthly spend
• $2,000 monthly spend

With the added $200 welcome bonus, the Active Cash card emerges as the winner – at least for the first year. Beyond that, the Robinhood Gold Card may start to pull ahead.

Exploring Travel Rewards and Redemption Options

If you frequently book travel using your credit card, the Robinhood Gold Card's 5% rewards rate through its travel portal may pique your interest. However, since the card is not yet live, prospective users are required to join a waitlist before gaining access to its benefits. Until we have more information about how the travel portal functions, it's advisable to hold off on making any hasty decisions.

It's important to consider how you prefer to redeem your rewards when selecting a flat-rate card. While you might earn more with the Robinhood Gold Card and have the option to redeem rewards as cash back, the process isn't always straightforward. You'll need to transfer your rewards to your Robinhood brokerage account and then move them to a linked bank account. In contrast, the Active Cash card simplifies reward redemption for cash back, eliminating the need for this two-step transfer process.

Is Robinhood Gold Card Worth It?

If you're already a Robinhood Gold member, signing up for the Robinhood Gold Card might be a logical choice – unless another rewards card catches your eye. For those who aren't current members, it's crucial to assess your monthly spending habits and preferred redemption methods before making a decision.

Saadat Qureshi

Hey, I'm Saadat Qureshi, your guide through the exciting worlds of education and technology. Originally from Karachi and a proud alum of the University of Birmingham, I'm now back in Karachi, Pakistan, exploring the intersection of learning and tech. Stick around for my fresh takes on the digital revolution! Connect With Me