Robinhood is an online brokerage platform that allows you to buy and sell stocks, cryptocurrencies, and other securities without paying a trading commission. The ability to trade stocks for free has made Robinhood a go-to platform for novice investors.
While you may already be aware of the various Robinhood account types, how a Robinhood debit card works, and how to purchase fractional shares on the platform, you may not know how to withdraw money from Robinhood.
Let's say you just completed profitable trades and want to take some cash out to spend on other things outside the platform (or to stash away in your emergency savings account). How do you do this? The process of withdrawing money from Robinhood is quite simple. Read on to find out how it works and long it takes for the funds to hit your bank account.
How long does it take to withdraw money from Robinhood?
You can withdraw money from Robinhood to your bank account for free. However, certain rules will apply to Robinhood withdrawals. The applicable rules depend on whether you want to withdraw money from a Robinhood deposit, trade proceeds, or the sale of the free referral stock that Robinhood gives to new members when they open an account.
To withdraw money from a deposit, you will have to wait until the deposit hits your Robinhood account, which can take up to five days. Withdrawing money from Robinhood sales proceeds requires waiting a few days for the funds to settle in your account. It takes two business days for Robinhood to fully settle a transaction.
Once it is marked complete, you can quickly access your Robinhood funds by having them transferred to a debit card. It typically takes between 10 minutes and 30 minutes for the money to make it to your bank. You may incur a 1.5 percent fee for immediate transfers to a debit card.
Also, funds from a sale transaction would be available for withdrawal on the third day after a trade. If you sell the free referral stock Robinhood gives to new members, 30 days must pass before you can withdraw the funds.
It's worth noting that it may take up to five business days for Robinhood withdrawals to reach your bank account. However, withdrawals initiated before 4:00 p.m. EST usually reach a bank account the next business day. Robinhood's daily withdrawal limit is $50,000.
Technical problems have been known to get in the way and delay depositing and withdrawing money from Robinhood.
How do you send cash from Robinhood to a different bank account?
You can withdraw money from Robinhood and send it to a different bank account than the one that funded it. However, strict restrictions apply in this case. If you made a deposit to Robinhood through one bank account and then decided to withdraw the funds to another, you may have to wait up to 60 days before you can initiate a withdrawal request.
Of course, you will have to wait up to four more business days for the funds to land in the new account after you initiate the withdrawal process. The long wait is a measure to prevent people from using the app for money laundering.
How do you withdraw money from a Robinhood account?
You can access Robinhood through the mobile app on devices running iOS and Android software. Individuals can also access Robinhood through its website on desktop devices. The process of withdrawing money from Robinhood through the mobile app is the same for iOS and Android devices.
On mobile, open the app and tap the "Account" icon located in the bottom right corner. From there click "Transfers" and then "Transfer to Your Bank." Choose the bank account that you want to send money to and then enter the withdrawal amount. Tap "Submit" to initiate the withdrawal.
To withdraw money from Robinhood through the website, head to the upper right corner of the screen and click "Account." Click "Banking" and a panel will appear on the right. Choose the recipient bank account and enter the transfer amount. Use the panel to withdraw the money from Robinhood.
While the process to withdraw money from Robinhood is a smooth one, it does take some time before the money reaches your bank.