Cashing out on Robinhood is quite a simple process. You only need a device (mobile or PC) and a registered account.
Of course, withdrawals are handled differently depending on the device used. So let's take a closer look.
IOS and Android
Whether you have an iOS or Android smartphone, withdrawing money from the Robinhood app is similar.
Step 1: Launch the Robinhood app. Then, press the "Account" button.
Step 2: Find and hit the "Transfers" icon.
Step 3: Select "Transfer to Your Bank."
Step 4: Find your bank in the list shown on your screen.
Step 5: Now, input the amount you want to withdraw from your account.
Step 6: Double-check that everything is in order and hit "Confirm."
Web
Although taking money from Robinhood is slightly different on your laptop, the process is still quick and simple. Start by visiting the official Robinhood website, and you'll be all set.
Learn how to cash out on Robinhood from your computer.
Step 1: Look for the "Account" menu in the screen's upper-right corner.
Step 2: Click on the "Banking" option once you see it.
Step 3: Enter the amount you wish to withdraw from Robinhood in this panel. Once you've entered the correct amount, confirm the transaction.
Canceling a Withdraw
If you're quick enough, you're still on time to cancel a withdrawal on Robinhood. Here are the steps to cancel the transaction before it's processed.
Step 1: Go to your "Account."
Step 2: Look for the "History" section (on Android, you'll need to tap the "Menu" icon first).
Step 3: Click on the pending withdrawal.
Step 4: Select "Cancel Transfer."
Fees
According to the Robinhood website, bank transfers are entirely free. Debit card withdrawals, however, carry a 1.5% fee as they typically happen instantly. Many banks may take around 30 minutes to complete the transaction.
That said, Robinhood prides itself in paying fewer fees than other financial service platforms.
How Long Does It Take To Withdraw Money From Robinhood?
Another question that pops into the customer's mind is, "How many days does it take to withdraw from Robinhood?". The short answer is—it depends on the type of funds transferred.
Deposit Funds
Pending deposit funds take up to five trading days to finalize. With Instant Deposits, you can get up to $1,000 without waiting. For example, if you own a Robinhood Gold, you can instantly transfer up to $50,000.
Selling Free Stocks
It's common for Robinhood to offer free stocks if you refer the service to family and friends. However, you'll have to wait three trading days if you plan to sell these referral stocks.
The bad news is that you can't get money from selling these funds for 30 days. So the sum should be kept in your account until the 31st day when the limitations are finally over.
Withdrawing Funds to a Different Bank Account
This process is more complex and time-consuming than depositing funds and selling free stocks.
If you're planning to withdraw your funds to another bank account than the one from which you deposited within 60 days of the first transaction, you must first contact support to help you with the process. Don't forget to send the following documents:
- A statement that claims why you're withdrawing funds from a new bank account
- A picture of your ID (back and front)
- Statements proving ownership of both accounts
- The amount you want to transfer
Why Can't I Withdraw My Money From Robinhood?
If you followed our steps and still can't withdraw from Robinhood, you should be aware of some security measures and limitations. What are the leading causes? How can you solve these issues?
Withdrawal Limit
The most common reason is—you've probably reached your withdrawal limit. In the case of bank transfers, keep in mind that Robinhood will allow the following:
- A total of five withdrawals per trading day from your account
- To withdraw up to $50,000 per trading day
For debit cards, you can take up to $5,000 every business day.
Remember—you'll not be able to spend your money while it's traveling. Since bank transfers take about five working days, you might want to turn to debit cards if you require instant cash.
Settling Money to Your Account
You must settle your money before withdrawing the funds to your bank account. More specifically, the settlement term is the trade date plus two trading days, also known as regular-way settlement or T+2. The sum will become withdrawable cash on the third day.
Account Restriction
An account restriction is the most complex limitation you can encounter as a Robinhood customer. In this case, we recommend contacting the Robinhood support staff that can help you solve the issue and remove the restriction.
Bottom Line
This article showed that transferring funds from Robinhood to your bank account is more manageable. But, of course, a successful withdrawal must meet several conditions and be cautious of some limitations.As a general rule of thumb, Robinhood uses your depositing account as your withdrawal account. You can, however, choose to transfer your funds to another bank.
