Robinhood launches 3% checking account
This whole checking account &#x2F; savings account, credit card&#x2F; debit card system that Americans have to deal with is so cumbersome and backwards.<p>For Europeans that don&#x27;t know: Most Americans have (at least) those two accounts, and those two cards. They usually spend from their checking account with their credit card, and save on the savings account. When they spend on their credit card, they sometimes &quot;earn&quot; points, depending on what agreement their bank has with the major retailers. Salary is inserted on the checking account. Some people still receive salary on old fashioned paper checks. Some people still pay in stores using paper checks. Almost everyone, has a lot of paper dollars in their wallet since there are plenty of places in which you need it. Now, on regular intervals, for example at the end of the month, Americans then transfer money from their savings account to their checking account if the salary is not enough to cover. If they forget, they pay high interests and fees. Generally speaking, it&#x27;s a hassle to transfer money to people you know and fees are hefty. When you use your credit card, no pin code is usually needed. There are regularly issues with your credit card being abused.<p>In the three European countries I have lived in, people have one account, and one card. Depending on your agreement with the bank, it can dip into negative (in which case you pay some interest, but usually not much). If it dips below the agreed max, let&#x27;s say minus EUR 5,000, then you can&#x27;t withdraw more until you receive your salary or until you insert money otherwise. People have one card attached to that card. When the balance on the account is positive, it is essentially a debit card. When the balance on the account is negative, it&#x27;s a credit card. Usually, no points are earned on any spending. In most of Europe, you use your pin code if you use your credit card. Where in America, you regularly spend time on the phone talking to robots and objecting to expenditures you didn&#x27;t make, that&#x27;s almost never the case in Europe. People transfer electronically without any fees from account to account. If you go out, and your friend pays dinner, you can transfer your half directly from your smart phone using just his phone number (so essentially just using the contacts on your phone). You don&#x27;t need Apple or Google pay or similar. It&#x27;s your bank&#x27;s app. No fee is charged.