How to Transfer Money out of Robinhood on Phone & Desktop
If you want to withdraw money you’ve earned on Robinhood, but don’t know where to begin, you’ve come to the right place. To transfer money out of Robinhood, navigate to the ‘Transfers’ option on the app, choose to transfer to your bank, enter the amount, and choose your bank account. It’ll take 3 to 5 business days to complete the transfer if there is no restriction hold on your account. The process is easy, but beware of certain things. This blog breaks down all of it.
How to Transfer Money Out of Robinhood?
You can transfer or withdraw money from Robinhood using the ‘Transfers’ tab. This option will be visible once you tap the account icon on the app. After that, it’s all about specifying the amount and choosing the bank account where you want to transfer money. If you’re doing it for the first time, you need to link your bank account first. Here’s a detailed explanation you can follow on an iPhone or an Android phone.
- Log in to the Robinhood app.
- Select ‘Account’ and then ‘Menu.’
- Select ‘Transfers,’ followed by ‘Linked Accounts.’
- Tap ‘Add account.’
- Choose your bank from the list.
- You can also use the search bar to find your bank.
- Type your online banking username and password
- Choose the account you’d like to link.
- To transfer money to this account, select ‘Transfers’ and then ‘Withdraw.’
- Enter the amount.
- Select ‘Continue.’
- Select the external bank account.
- Enter the amount, and that is it.
How to Transfer Money Out of Robinhood on Desktop?
The process to withdraw money from Robinhood on desktop is almost the same as in the app.
- Open Robinhood’s website and sign in.
- Select ‘Account,’ and then ‘Transfers.’
- Select ‘Transfer from your bank’ and specify the amount.
- Under ‘From,’ pick Robinhood
- Under ‘To,’ choose your bank.
- Select ‘Submit.’
How Much Money Can You Withdraw from Robinhood?
Robinhood withdrawal limits differ by user account. You will see the, directly in the app’s transfers section. To find out how much money you can transfer from Robinhood:
- Go to your account dropdown.
- Choose ‘Transfers.’
- Tap ‘Learn more about transfer limits’ or ‘Transfer limits’ link.
- Here, you will see your withdrawal limit.
Common Issues When Transferring Money from Robinhood to a Bank
Despite a straightforward process, many users complain of the inability to transfer money from Robinhood to their bank. This mainly happens when you are unaware of the settlement period, settled funds, or when there are account restrictions.
Settlement Period Requirements
The most common reason for withdrawal restrictions is the T+1 settlement period that applies to all stock and options trades. When you sell securities, the proceeds must settle for one business day before becoming available for withdrawal. During this settlement period, your funds appear as “buying power” rather than “withdrawable cash.”
Account Restrictions
Your Robinhood account may have restrictions that prevent withdrawals. Common reasons for account restrictions include:
- Incorrect or outdated account information
- Suspected fraudulent activities
- Pending bank transfer reversals
- Account levies filed against you
- Company control person status (attempting to buy stock in a company where you’re a control person)
- Regulatory inquiries or compliance issues
Buying Power vs. Withdrawable Cash
It’s important to understand that buying power and withdrawable cash are different. Your buying power includes:
- Settled funds from deposits or sales
- Unsettled funds from recent sales still in settlement
- Margin funds (if you have a margin account)
However, only settled funds can be withdrawn as cash. If you recently sold securities or made deposits, those funds may show in your buying power but won’t be available for withdrawal until they settle.
Are There Fees to Transfer Money From Robinhood?
Standard ACH bank transfers are completely free. This is the most common way to withdraw money from Robinhood to your linked bank account. There are no charges from Robinhood for this service. These transfers take 3-5 business days to complete. Outgoing wire transfers to domestic bank accounts are also free. Your receiving bank may charge an incoming wire fee. International wire transfers from Robinhood are similarly free on Robinhood’s end.
Instant withdrawals carry a fee of 1.75% of the transfer amount. This fee has both a minimum and a maximum:
- Minimum fee: $1
- Maximum fee: $150
The same 1.75% fee structure applies to instant transfers to external debit cards. These methods process money within 30 minutes. In November 2023, Robinhood increased the minimum instant withdrawal fee significantly, from $0.02 to up to $2. This means transfers under $133.34 are subject to higher relative fees than before.
If you want to transfer your investment positions (not cash) to another brokerage, Robinhood charges a $100 ACATS (Automated Customer Account Transfer Service) fee. This applies to both partial and full account transfers. However, many receiving brokerages will reimburse this fee if you’re transferring a substantial amount. For example:
- Charles Schwab reimburses the fee for accounts over $10,000
- Fidelity covers the fee for transfers of $25,000 or more
Conclusion
Transferring money from Robinhood isn’t difficult, no matter the platform, be it iOS, Android, or the desktop. You must know the settlement period and withdraw only settled funds. If you want money urgently, opt for instant withdrawal for a cost. Moreover, you can contact Robinhood support anytime you feel stuck.
Frequently Asked Questions
1. How do I transfer money from Robinhood to my bank account?
Open the Robinhood app, tap the Account icon, select the three-line menu, tap ‘Transfers,’ then ‘Transfer Money.’ Enter the withdrawal amount, choose ‘From: Robinhood’ and ‘To: Your Bank Account,’ review the transfer details, and confirm. Standard transfers are free but take 3-5 business days.
2. How long does it take to withdraw money from Robinhood?
Standard bank transfers take 3-5 business days to complete. Instant withdrawals are available within 30 minutes, but a 1.75% fee applies (minimum $1, maximum $150). Funds must first settle for 1-2 business days after selling stocks before becoming withdrawable
3. Can I withdraw all my money from Robinhood at once?
You can withdraw up to $50,000 per business day via standard bank transfers. If you have more than $50,000, you’ll need to split withdrawals across multiple days. You can only withdraw settled cash. If your money is invested in stocks, you must sell them first and wait for settlement.
