How to Withdraw Money from My Robinhood Account?
In this guide, we show you how to withdraw money from your Robinhood brokerage account. While the user experience has attracted a new generation of investors, Robinhood is still a new company which poses more restrictions and wait-time compared to other larger, traditional brokerages.
What Are the Robinhood Withdrawal Options?
Many brokerages support withdrawal via ACH (Automated Clearing House) and via a Bank wire which is a faster direct-to-direct transfer. At this time, Robinhood only supports ACH withdrawals, but does make it easy to complete the process.
You can withdraw either by using the mobile app or online. There isn’t a difference in the limitations or features between the two, only the user experience.
Withdraw Money via Robinhood Mobile App
The most familiar option for many is with the mobile app.
After opening the Robinhood app on your device, tap on the 2nd icon in the bottom tab navigation bar. The icon looks like a stack of cash.
You will be navigated to the cash dashboard which gives you options to manage your cash within Robinhood. To start the transfer request, click the green “Transfer” button to take you to the “Transfers” screen.
On the transfer screen, you can transfer money to and from Robinhood and manage the bank accounts associated with your Robinhood account. If you want to transfer to a different bank than already linked, you can set that up now or when selecting the account to transfer to. Keep in mind that it may result in additional delays if you are withdrawing to a different bank than you have deposited from within 60 days of the last deposit.
Adding an additional bank account, uses Plaid, a 3rd party provider that integrates with many popular banks. Tap “Continue” to select your bank.
The most popular banks are shown by default, but Plaid supports many different banks and so just search for your bank. If it’s not found, you will have to verify it manually in which you get 2 small deposits and have to enter the amount. This could take 48 hours for the transfers to show in your bank adding delays.
Once the bank you want to deposit to has been verified, you can complete the transfer process by tapping on “Transfer money”, the first option on the “Transfers” screen taking you to the “Transfer money” screen shown below.
Tap the “Select an account” under the “From” section and select your Robinhood account. This will show how much cash is available to withdraw as well.
You repeat the same process in selecting your destination bank where you want the funds to go to and can also add a different bank at this step as well. Then, enter the amount you want to transfer and tap “Review” taking you to the confirmation screen shown below. To complete the request, tap “Transfer”.
Note: Robinhood is transparent about the typical time it takes indicating the funds will be immediately unavailable from your account but can take up to 5 business days to reach your bank account.
Robinhood Promotion
Up to $200 in FREE stock + transfer fee reimbursement.
Open Robinhood Account
What are the Robinhood withdrawal limits?
There are 2 Robinhood withdrawal limits to be aware of:
The number of withdrawals per day - 5
The total sum of withdrawals per day - $50,000
The other withdrawal impact to be aware of is if you are using a margin account with Robinhood Gold. You must leave at least $2,000 in your account not counting any cryptocurrency positions, or disable margin investing in your settings to withdraw below $2,000. This is a FINRA requirement for margin investing.
How Long Does Robinhood Withdrawals Take?
Robinhood doesn’t support Wire withdrawals at this time and estimate that withdrawals may take up to 5 business days. This doesn’t include the amount of time to wait for transactions to settle (e.g., 2 days for stock sales and 1 day for option sales).
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Withdraw Money from Robinhood.com Website
If you’ve deleted the app from your phone to avoid constantly looking at your portfolio, you can always request transfers online directly from Robinhood.com. There is no difference in the functionality, only the user experience.
After logging in robinhood.com, click the “Account” menu in the top right to bring up the menu dropdown. Select “Transfers” to go to the “Transfers” page.
On the “Transfers” page, you will see your “Linked Accounts”. If you would like to transfer to a new account not listed, click “Add New Account”. Otherwise, jump to step 5.
Similar to the mobile experience, Robinhood uses Paid with their website as well, a 3rd party financial institution, to auto-connect and verify your bank account. Many large banks are supported by Plaid. Just click “Continue” to start.
The most popular banks are listed by default. You can scroll down in the popup for more banks asking you to “Search” if you can’t find your bank. If you start searching and still can’t find your bank, you will have the option to add manually which will trigger micro-deposits that can take up to 48 hours to verify. Once you’ve found your bank, follow the on-screen process that varies between banks.
After verifying or adding the account you want to withdraw funds to, use the “Transfer money” panel to the right. Enter the amount to transfer, with a total transfer limit of the day of $50,000 including transfers requested from the mobile app. Select the dropdown in the “From” section and choose your “Robinhood” account.
Follow the same process to select the destination account.
Then, you will need to click “Review transfer”.
You will see the confirmation message confirming how much you want to transfer and giving the notice that the funds will be immediately unavailable from your Robinhood account and may take up to 5 business days to reach your destination account. Click “Transfer” to complete the request.
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Why Can’t I Withdraw Money From Robinhood?
Robinhood makes it quick with various features to get money into your account such as “Instant deposit”, “Automatic deposits”, and “Referral stock” but has a longer wait period to get money out though the process lives up to the clean and simple user experience they are known for. Here are some common reasons why you aren’t able to withdraw money:
You recently made a deposit and expect to withdraw funds from the deposit or profit from transactions made with the deposited funds.
While you can start trading stocks right away with instant deposit, you cannot withdraw funds from the profit of those transactions until the deposit is complete which may take up to 5 business days. This is separate from the T+2 settlement window but is not cumulative. For example, if you purchased a stock on day 1with instant deposit funds, sold the stock on day 2 making $100 profit, and the deposit cleared on day 5, then, you would be able to withdraw the $100 as day 4 would be the stock settlement date of the sale.
You recently made a sale that has not settled yet.
Stock transactions take 2 business days to settle and option sales take 1 business day to settle. This means that you won’t be able to get access to withdraw until the 3rd day from a stock sale and 2nd day from an option contract sale.
You are withdrawing money to a different bank account than the account you deposited from within 60 days.
To reduce fraud, Robinhood requires additional verification when you are wanting to withdraw funds to a different bank account than the depositing bank account within the 60 day time window. This includes:
A brief description of why you are unable or unwilling to withdraw to the bank account you originally deposited funds from.
A photo of the front and back of your government-issued ID.
Bank statements showing that you are the account holder of the two linked bank accounts. Photos or PDFs must be clear and easy-to-read.
Amount and specific bank account that you’d like to transfer funds to.
Your account has a restriction which can include fraud inquiries or account levies. You will have to contact Robinhood at https://robinhood.com/contact to resolve the issue.
You are trying to access cash from the sale of referral stock.
Robinhood gives away free stock for referring friends and family. The free stock can be sold but you won’t be able to withdraw the cash from the sale until 30 calendar days.
Robinhood Promotion
Up to $200 in FREE stock + transfer fee reimbursement.
Open Robinhood Account
Arthur Chachuna is professional personal finance blogger, and the owner of Brokerage-Review.com.
He has been an avid investor for 23 years, and has background in both applied math and programming.
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