I'm thinking the best play is to just manually redeem them to my RH brokerage daily, or even after every purchase? As soon as it goes to RH brokerage, you can just toss it in SGOV and put the cash to work. Does anybody else do this?
Robinhood Gold Card, when to redeem points to brokerage?
byu/Opposite_Buffalo_649 inCreditCards
Posted by Opposite_Buffalo_649
4 Comments
I went from daily to weekly
It’s a balancing act between not letting your points sit there earning nothing against the hassle of manually redeeming them. IMO, I would do it once a month, since even with something like SGOV, unless you are just spending insane amounts of money, the potential earnings over that month period is going to be negligible.
Just to throw some numbers at it, SGOV recently has a 1-month total return of about 0.28%. So, if you spent, say, 100k in a month and earned 3% back on that, so $3k, the SGOV earnings on that over 1 month would be $8.40. And I’m going to go ahead and guess that you aren’t spending anywhere near 100k in a month…
In other words, monthly is fine and I wouldn’t bother redeeming points every week and certainly not every day just to chase a few pennies. The hassle isn’t worth the return.
Redeem ASAP is the only answer.
doing it daily sounds nice but it might be easier to just redeem weekly or monthly since the extra gain is super small and batching still gets the money working without the hassle