How to Withdraw Money from Robinhood – What You Should Know
Withdrawing money from Robinhood is possible through various options. The option you choose can significantly impact the speed and cost of your transfers. Based on current policies, users can choose between standard ACH bank transfers that are free but take 3-5 business days, or instant transfers. These incur a 1.75% fee but provide immediate access to funds. Learn all about withdrawing money from Robinhood in this post.
Understanding Robinhood Withdrawal Methods
Robinhood offers two primary methods for withdrawing funds. Each meets different user needs and timeline requirements. The platform has structured the methods to withdraw money to balance accessibility with cost considerations, so you can choose based on your urgency and fee tolerance.
Standard Bank Transfers (ACH)
Standard bank transfers are cost-effective methods for withdrawing money from Robinhood to your bank account. These Automated Clearing House (ACH) transfers are completely free. You can withdraw up to $50,000 per day from Robinhood. The primary trade-off is time. This option usually takes 3-5 business days to complete and reflect in your external bank account. If you can plan your withdrawals in advance and prioritize cost-efficiency, use this method to withdraw money from Robinhood.
Instant Transfers
For users who need immediate access to their funds, Robinhood offers instant transfer. The options are for both debit cards and bank accounts. These transfers are processed within minutes. You need to pay a fee of 1.75% of the transfer amount, with a minimum fee of $1 and a maximum fee of $150 per transaction. With this option, you can access your investment gains or trading profits immediately. This makes the option ideal for time-sensitive financial needs or emergency situations.
How to Withdraw Money from Robinhood App?
Use these points to withdraw money from the Robinhood app.
- Tap the account icon (person symbol) in the app.
- Go to menu represented by three horizontal lines.
- Select “Transfers” and then choose “Transfer money” to access the withdrawal interface.
- Specify the withdrawal amount, ensuring it doesn’t exceed your available withdrawable cash balance.
- The app will display your Robinhood account as the source and allow you to select your linked bank account.
- After entering the desired amount, review the details and choose between standard or instant transfer options.
How to Withdraw Money from Robinhood to Bank Account on Desktop
This method is also similar to withdrawing money using the app.
- Tap the “Account” section from the main navigation.
- Select “Transfers” from the available options. The “Transfer money” option provides access to the same withdrawal functionality present on mobile.
- Type a transfer amount, select source and destination accounts.
- Set your transfer frequency preferences.
- You will see both standard and instant transfer options with clear fee information.
How to Withdraw Money from Robinhood Wallet?
The Robinhood Wallet app is a self-custody wallet. It is your gateway to web3 where you can store and manage your crypto. To withdraw money from it, use these steps.
- Access the Transfers section
- Now, select the ‘Withdraw’ option.
- Enter the amount you want to withdraw.
- Select the Robinhood account you want to withdraw from.
- Pick the bank account or other wallet you want to transfer your money to.
- Review the transaction and confirm it.
Settlement Period When Withdrawing Money from Robinhood
The settlement period significantly impacts when proceeds from stock sales become available for withdrawal. Following a sale of equities or options in your investing or retirement account, transactions need a trading day (T+1) to settle. Only after this period can the proceeds be withdrawn to your bank account. So, if you sell stocks on Monday, the cash will generally be available for withdrawal on Tuesday. Tuesday needs to be a trading day.
For users with Robinhood Strategies managed accounts, settlement periods may be extended. It happens when withdrawal requests exceed the available cash balance. So, the platform must sell assets to generate sufficient cash, which can add an additional 2-3 days to the withdrawal period. This extended timeframe is important for you if you depend specific withdrawal schedules for their financial planning.
Conclusion
Now, you know how to withdraw money from Robinhood. Use the steps mentioned above to take out money from your Robinhood mobile app or website. If you face any issues, contact Robinhood support.
Frequently Asked Questions
To cash out stocks, you need to sell them first. So, sell the shares and then transfer the amount to your bank account.
It takes two trading days for the stock sale to be settled before you can withdraw money in Robinhood. If you received free stock (like from an offer) and then sold it, you need to wait for 30 days.
Instant withdrawals from Robinhood are easy. The only thing is that these withdrawals to a debit card or bank account can incur a 1.75% fee. There is a minimum of $1 and maximum of $150 for each transaction.
If you transfer assets or cash from Robinhood to an external brokerage, Robinhood will charge you a $100 fee.
