Wednesday, October 27, 2021

    How to withdraw money from the Robinhood app

    How to withdraw money from the Robinhood app

    Hand holding phone with money coming out and clicking withdraw button on the robinhood app 2x1

    After you submit a request to withdraw funds from your Robinhood account, it can take a few trading days for the funds to settle in your account.
    Rachel Mendelson/Insider
    • To withdraw money using the iOS or Android apps, you’ll have to navigate to your account settings and then click on the transfers option using the website or app.
    • But before you can withdraw money from your Robinhood account, you’ll have to meet certain requirements, depending on where the money came from.
    • You can make up to five withdrawals a day and are limited to $50,000 per business day.
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    Robinhood is one of the most popular trading platforms for young investors, but not all users are happy. If you want to switch from Robinhood to one of Insider’s top-ranked investment apps, you can either directly transfer securities out of Robinhood into your new brokerage account, or you can sell your stocks and crypto and transfer the money into your bank account.  

    It’s easy to withdraw money from Robinhood on your iOS or Android mobile device — or by using their website. If you can, it’s best to withdraw your cash into the same bank account you used to fund your account. Otherwise, Robinhood may ask you for extra documents to prove that you own the bank accounts in question.  

    Before you withdraw your funds

    Robinhood users should look out for a few rules that limit how and when they can withdraw their cash from their accounts. 

    • You may be required to wait up to five business days after depositing funds. Robinhood has an “Instant Deposits” policy, which means some customers can  start trading as soon as they’ve moved cash into their Robinhood account from their checking or savings account. But there’s a catch: even though you might be able to buy and sell stock with your “instant deposits,” you won’t be able to transfer your cash back out of Robinhood right away. Once you’ve moved money into your Robinhood account, you’re typically required to wait up to five business days before you can move that money out. 
    • After selling stock, you must wait for the trade to settle. When you buy or sell stocks, ETFs, or options in the United States, it takes three business days for those trades to “settle,” which means the trade is officially complete. If you’re a Robinhood Gold or a Robinhood Instant user, you may be eligible for instant settlement, which means you can withdraw any proceeds right after you sell stocks, ETFs, or, options.  
    • You can make only five withdrawals per business day. If you’ve already hit that limit, you’ll have to wait until the next business day to make any additional transfers.
    • You can withdraw only $50,000 per business day. If you have a large balance that exceeds that amount, you will have to withdraw money in lump sums.
    • You have to wait 30 days to withdraw funds from selling free stock. You know that free stock you received from Robinhood’s Referral program? Robinhood will let you sell that stock right away if you want, but you have to keep the cash value of that stock in your account for 30 days before you can withdraw it.  
    • You’ll face special rules if you’re switching bank accounts. Watch out if you funded your Robinhood account with one bank account, and want to move your money into a different bank account. That can look suspicious, and Robinhood has some special rules that apply in that situation. They may ask you to send some documents to prove you’re really the owner of both bank accounts, like sending pictures of your photo ID or bank statements. To avoid the hassle, it’s best if you can withdraw your cash into the same bank account that funded your Robinhood account.
    • You may not be able to withdraw money while your account is restricted. Robinhood sometimes restricts users’ accounts. That can happen if the user has a negative balance, had a bank account transaction reversed, if the user is suspected of fraud, or for a few other reasons. If your account is restricted, you may not be able to withdraw any money until you’ve contacted Robinhood to clear things up.

    The financial takeaway

    You can easily transfer money out of Robinhood into your bank account. But there’s a few catches. Most importantly, you can’t take money out until five business days after you’ve transferred that money into Robinhood. You’ll also need to wait three business days after selling stocks, ETFs, or options before you can withdraw the proceeds. 

    On the iOS or Android app, get started by tapping the “Account” button in the bottom right of the screen, which looks like a cartoon person. From your browser window, get started by clicking “Account” in the top right, and then click “Transfers.”

    Elena Botella is a reporter who covers business and finance. Her work has appeared in Slate, U.S. News and World Report, American Banker, Forbes.com, and other outlets. Previously, Elena was an analyst at Capital One.  

    More: Investing How To Robinhood app Robinhood Cash Management Account Money

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