On Thursday, online brokerage firm Robinhood announced a new checking account paying 3% interest. It seemed too good to be true. It was.
The big picture: Checking accounts are extraordinarily powerful things. They're one of the key mechanisms by which banks create money and help to keep the economy growing. They're also the key mechanism behind bank runs that can cause an economy to crash. That's why depositary institutions are the most regulated companies in the world.