Guide: How To Withdraw Money from The Robinhood

Robinhood is one of the best commission-free stock tradings and investing app, with more and more interested in what the app is offering. The app is accessible through the internet, web, Android, and IOS also.

The features of Robinhood and the convenience of the app attract more and more people to start using the application. With the stock market generating more returns than ever, we are thrilled to see the numbers increase daily of people investing in stocks and crypto through the Robinhood app.

A question also arises in your mind: how do you withdraw your money from the Robinhood app?

Not to create more confusion, let’s simplify and make it easy in this article.

So, here is a complete guide on how to withdraw and how long it takes to withdraw money from Robinhood.

Is it possible to get money away from Robinhood?

Anyone connected with a Robinhood account can withdraw money. However, there are some limitations to be followed before crashing out.

NOTE: As per Robinhood guidelines You do up to 5 withdrawals per business day in your bank account and the withdrawal limit is up to $50,000 per business day.

You must keep in mind two conditions before withdrawing from your Robinhood account. These conditions might seem straightforward if you plan to use them once.

For $50,000 per day, if you keep planning to grow your account for many months and suddenly decide to withdraw, it’s become difficult for you, so it is said to plan accordingly.

Withdrawals are made differently by different devices. The process is different from your smartphone and computer device; let us see how you can both in their specific ways.

How can you withdraw your money from Robinhood?

There are two ways to withdraw your cash from Robinhood; the process is straightforward.

From Your Android or iOS Device:

Withdraw your money from the first way, i.e., from your phone. All you need is your phone’s Robinhood app installed. It doesn’t matter whether you are an android user or an iOS, and the main steps are similar on both phones.

  • Open the Robinhood app, then tap the “Account” icon access created via the bottom-right corner of the screen
  • Next, drive towards the “Transfers” menu and select the “Transfer to your bank” option
  • Find the bank you want to transfer your Robinhood savings too
  • Enter the amount you wish to withdraw under $50,000 as the criteria are set only up to $50,000
  • Double-check that all the details listed are correct and move forward towards confirming your withdrawal

From Your Web:

Withdrawing your money from the web would be slightly different from smartphones. All you need is Robinhood’s official website and some simple steps to follow:

  • Open Robinhood’s official website on your laptop/desktop, and tap the login to your account
  • Once you enter your account details, the screen will appear where you need to search for the “Account” option. It is located at the top-right corner of your screen on your website
  • Moving forward, tap on the “Banking” option once you see it
  • Next, you will find a panel page in front of you, enter the withdrawal amount you want but under $50,000 as the criteria are set      
  • Confirm the details and make the transaction easy while the money appears in your bank account mentioned

The steps are pretty similar, but you need to be cautious while switching from one platform to another.

How long does it take to withdraw money from my Robinhood account?

Transferring money from one account to another may take a while, not because of Robinhood’s side, but because some processes need to be followed, and how it takes time. There are a few terms you need to know before withdrawing your money.

➥ Settlement period

Following that, Robinhood is your online broker; the transaction needs to be “settled” before you withdraw them into your bank account. The settlement period takes up to (T+2) trade date plus two business days. On the third day, the funds will turn into withdrawable funds, after which you can withdraw from your account.

➥ What if I want to withdraw into a different bank account?

It is possible if you want to withdraw into a different bank account other than the original one. The one you entered your details before, but for the new one, there is some extra information you need to provide and engage in some verification.

If the initial bank account is closed or you cannot operate it, a support team will guide you to a different bank account.

Here are some points you must be aware of and most likely share with the team.

  • A brief statement of why you want to transfer your funds into a new bank account; if there is any technical or bank-related issue, you must share it with the support team.
  • A photocopy of the front and back of your government ID
  • Bank statements that you are the holder of two bank accounts, especially the name, must be visible, and they should be clear, preferably in the format of PDF.         
  • Name of the bank account you would like to transfer and specific amount.

➥ If your account gets restricted

It may take up to a while to know the reason; the withdrawal is stopped in such cases.

In this case, you need to get in touch with the support team, they will get your issue solved, and the reason will also be considered why the account was restricted. The time taken depends on how fast you would get the response and how quickly the issue will be solved.

➥ What is referral stock?

The cash value of your stock needs to remain in your account for at least 30 days from the time you purchase it. If you sell your free stock before 30 days, those stocks will not be able to access your withdrawable funds.

For example, if you win one share of $20 to your brokerage account, you will not be able to withdraw your $20 by selling those shares before 30 days. It means the cash value of your share is determined by the price of the stock and by the time you have purchased it. Hence, you can check out the history tab to know the stock’s price.

➥ Robinhood Gold

If you are a Robinhood gold account user, you can use the margin investment feature, but you need to maintain a brokerage account of at least $2,000 to meet the minimum requirement to borrow the gold funds. If you want to withdraw an amount below $2,000, you need to proceed to settings and turn off the margin investing.

➥ Can I cancel the withdrawal?

Yes, you can cancel the withdrawal transactions, but there are specific ways.

  • First, visit your “Account” and tap at the bottom right corner
  • Next, if you have more than one Robinhood account, tap the “Menu” icon in the top right with three horizontal bars
  • Then you will see the pending withdrawal, after which the possibility is the click on it.
  • Tap Cancel transfer

There are three possible times you can cancel your transactions depending on when you initiated them on trading days. After the time passes, there is no possibility you can cancel the withdrawal for whatsoever reason, but you will have to wait till the time gets completed.

  • If you start a transfer between 3:00 pm to 7:00 pm ET, you can cancel up to 7:00 pm ET on the same day.

If you create a transfer after 7:00 pm ET, you can cancel up to 3:00 pm ET on the following day.

Frequently asked questions (FAQ)

Do we have to pay taxes to withdraw money from the Robinhood app?

Yes, at certain times, any dividends received from your Robinhood stocks from selling stocks on the app are your duty to inform or report to your individual income tax holder.

Why can’t I withdraw my money from Robinhood’s account?

The possibility there might be some reasons which are in between your withdrawals, such as:
➥ You might have already hit the withdrawal limit.
➥ The money hasn’t settled down in your account
➥ You may have an account restriction; in this case, reach out to the support team.

How many charges need to be paid to withdraw money from Robinhood?

Robinhood typically does not charge transfer fees but might be some exceptions to it.
For example, if you decide to transfer your Robinhood money to some other firm, it may charge transferable fees but with a minimal amount.

Can you use Robinhood without a bank account?

The answer to this question is NO. You cannot use a Robinhood brokerage account without a bank account, as you will need to deposit and withdraw money from your initial bank account.

Last Words

We hope this article will help you in every single way and answer most of your doubts about how you can withdraw money from your Robinhood account. If you follow the above steps, you will have no problem occurring in your account, and your transaction will be very smooth.

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