As more businesses look to invest their excess cash, many small business owners are turning to popular investment platforms like Robinhood—but does Robinhood offer a business account? 

Known for its user-friendly interface and commission-free trading, Robinhood has revolutionized how individuals invest in stocks, ETFs and cryptocurrencies. If you’re a small business owner looking to grow your company’s financial reserves, understanding your investment options can benefit your company for years to come. Here’s what you should know about Robinhood, and alternative business investments.

What is Robinhood?

Want to get into investing, but don’t know where to start? Afraid of the fees? That’s what inspired Robinhood to create its platform. Robinhood is a commission-free trading platform designed to make investing in stocks, exchange-traded funds (ETFs), options and cryptocurrencies accessible to everyone. Launched in 2013, Robinhood eliminated traditional brokerage fees. The company provides an easy-to-use mobile app for trading, making the barrier to entry very low. The platform is particularly popular among beginner investors and those looking for a straightforward way to manage their investments without high costs or complicated tools.

Robinhood is available to U.S. residents who are at least 18 years old, have a valid Social Security number and possess a U.S. residential address. Users must also meet the platform’s identity verification requirements. While Robinhood is primarily tailored for retail investors, it also offers Robinhood Gold. This is a premium subscription service with advanced tools, research access and margin trading for more experienced traders.

Robinhood allows users to buy and sell stocks, ETFs and cryptocurrencies without incurring traditional brokerage fees. Its user-friendly interface simplifies the trading process, making it especially appealing to beginners. The platform also offers fractional shares, enabling investors to purchase portions of high-value stocks. This lets people invest in a much smaller share of what would otherwise be expensive investments.

Does Robinhood Offer Business Accounts?

No, Robinhood does not offer business accounts. The platform is primarily designed for individual investors. Because Robinhood’s services cater to personal investing needs, it lacks the specialized features that business accounts typically require—including tools for managing business finances, payroll or tax reporting. Therefore, businesses seeking investment or trading accounts will need to consider other platforms that cater to commercial or corporate clients.

Business Investing Alternatives

Running your operations, managing expenses and driving revenue is typically the bulk of a small business owner’s day-to-day life. However, there may be times when your business has excess cash. Rather than letting those funds sit idle in a checking account, investing can be a smart way to grow your business’s financial reserves. Here are several types of investments that small businesses should consider:

Business Interest Checking Accounts

If your business wants to earn interest while keeping funds accessible, a Business Interest Checking account is a smart option. These accounts allow you to grow your balance by earning higher interest than standard business checking options.

Though the interest rates may be lower than high-yield savings accounts, Business Interest Checking combines earning potential with day-to-day financial flexibility. It’s an ideal way to put your operational cash to work while maintaining easy access for expenses, payroll, and investments.

With North One’s Business Interest Checking, you can earn up to 3% APY (that’s 38x the national average) without monthly fees and enjoy tools like envelope budgeting and seamless financial integrations, ensuring your money works as efficiently as you do.

High-Yield Savings Accounts

If your business is looking for a safe and low-risk investment option, a high-yield savings account is an excellent choice. These accounts typically offer higher interest rates than traditional business checking or savings accounts. This helps your money grow steadily over time without significant risk. 

While the returns are not as high as some other investment options, they provide liquidity—that is, they allow you to access funds quickly if needed. It’s a great way to earn passive income on excess cash while preserving your business’s financial flexibility.

Certificates of Deposit (CDs)

Certificates of Deposit (CDs) are a low-risk investment option that can offer higher returns, especially if you commit to locking in your funds for a set period. Terms typically range from six months to one year or longer. Many banks and credit unions offer business CDs with competitive interest rates. The trade-off is that your money will be tied up for the duration of the term, so it’s important to ensure that the investment aligns with your business’s cash flow needs. 

Money Market Accounts

Money Market Accounts (MMAs) combine the features of savings accounts and checking accounts. They offer higher interest rates than traditional savings accounts, along with easy access to your funds. Many MMAs also provide check-writing capabilities and debit cards, which can be convenient for businesses that want to maintain liquidity while earning better returns on their excess cash. This option is great for business owners who want to earn higher rates, like CDs, but don’t want to lock up their funds for a set term.

Stocks and Bonds

If your business has excess cash that can afford to be tied up for a longer period—and you’re willing to take on more risk—investing in stocks and bonds may be an attractive choice. Stocks offer the potential for higher returns, though they come with greater risk due to market volatility. 

Bonds, on the other hand, are generally safer investments. They provide regular income in the form of interest payments. Many small businesses choose to invest in a diversified portfolio of stocks and bonds, which helps balance the risk and return.

Peer-to-Peer Lending

Peer-to-peer (P2P) lending platforms allow businesses to lend money to individuals or other businesses in exchange for interest payments. It’s an alternative investment option that can offer higher returns than traditional savings accounts or bonds. 

However, it also comes with risks, such as the possibility of borrowers defaulting on loans. As a small business owner, you might consider allocating only a portion of your excess cash to P2P lending. Be sure to consider your risk tolerance and financial goals before going this route.

Real Estate

Real estate can be a solid investment choice for small businesses with larger cash reserves. Purchasing commercial property, renting out unused office space, or investing in rental properties can provide long-term capital appreciation and steady cash flow. 

If buying property outright is not feasible, you might also explore real estate investment trusts (REITs). These allow you to invest in a diversified portfolio of real estate assets without the need for direct property ownership. Real estate can be a reliable way to diversify your business’s investment strategy and generate additional income.

Business Expansion

While not a traditional “investment” in the stock market sense, using excess cash to expand your business could be a highly rewarding move. Whether you’re opening a new location, launching a new product or increasing your marketing efforts, reinvesting in your own business can generate high returns in the form of increased revenue. This type of investment can provide you with more control over the outcome and directly contribute to your business’s growth.

Retirement Accounts

Don’t forget about your business’s future. Investing in a retirement account, such as a 401(k) or SEP IRA, can be a great way to save for the long term while benefiting from tax advantages. You can contribute on behalf of yourself, your employees or both. 

These accounts offer tax-deferred growth. Depending on the account type, they may help reduce your taxable income. Using excess cash for retirement savings ensures that your business is preparing for the future—while simultaneously securing your personal financial wellbeing.

North One: A Business Checking Alternative Designed to Grow With You

As a small business owner, knowing where to invest excess cash is an important one. While Robinhood doesn’t offer business accounts, there are still plenty of options available. From high-yield savings accounts to real estate and even reinvesting in your own business, you should make informed choices that align with your financial strategy. 

Need a business checking account that grows along with your business? North One’s digital-first checking accounts are designed with small businesses in mind. Entrepreneurs love our online and mobile platform, financial management tools, straightforward fee structure with up to 3% APY. Sign up for an account today—and let us help save you the money you could be investing.