Explaining How to withdraw money from Robinhood?
The last 18 months or so have been tough for investing. A
downturn in the stock market combined with a myriad of collapses in the
cryptocurrency industry made a lot of people poorer. If you made it through
with some of your portfolio intact, then you’re doing better than some, and you
couldn’t be blamed for wanting out. We’ll try to help by explaining how
to withdraw money from Robinhood.
To withdraw your money from Robinhood, go to the Account
menu and select Transfer. Specify whether you want to withdraw to a bank
account or debit card, then input the amount. Review the withdrawal and press
Submit.
Is there a fee to withdraw money from
Robinhood?
It depends on the method you want to use to withdraw
money from Robinhood. If you’re withdrawing to a bank account, there
are no fees. But Robinhood charges a fee of 1.5% to withdraw to a debit card,
which is deducted from the requested total when the withdrawal is processed.
Robinhood states that this extra fee is due to the debit
card transfer being instant (more on that below), but there are no fees for
depositing funds onto the broker using either method. It might be that
Robinhood wants to incentivize deposits more than withdrawals, but you can draw
your own conclusions.
You should be aware that there are daily withdrawal limits
for both methods. For a bank account, you can withdraw up to $50,000 per day
plus a further $5,000 in instant transfers. You can also only make up to five
withdrawals per day. You can withdraw $5,000 per day to a debit card account.
How to withdraw money from the
Robinhood app?
It is quick and easy to withdraw your money from Robinhood,
assuming your account is not restricted in some way. You might also have to
wait for the money to be available. This could sound obvious, but for example,
equities transactions need to settle before the proceeds can be withdrawn and
this takes a couple of days.
All being well, you
can withdraw money from the Robinhood app using the following steps:
·
From the home screen on the app, tap the Account
button in the bottom-right corner of the screen.
·
Tap the Menu button in the top-right corner of
the next screen, represented by three horizontal lines.
·
Select Transfers.
·
Choose whether to transfer money to your debit
card or bank account. If you are withdrawing to a bank account and it qualifies
for instant transfers, you can select this preference here (for a 1.5% fee.)
·
Enter the amount you’d like to withdraw.
·
Review the withdrawal. If there is a fee associated
with the withdrawal, then it will be calculated and shown here.
·
Confirm by pressing Transfer.
How to withdraw money from the
Robinhood website?
The steps
to withdraw money from the Robinhood website are almost exactly the
same as the app:
·
Find the Account icon in the top-right corner of
the site while you’re logged in.
·
On the dropdown menu that you see, hit
Transfers.
·
Fill in the details of the withdrawal you want
to make on the next screen. This will include inputting the amount and choosing
the bank account or debit card you want to withdraw to.
·
Click Submit to confirm the transfer.
How long does it take to withdraw
money from Robinhood?
Withdraw
your money from Robinhood to your bank account can take up to five
trading days, which essentially means five business days. If withdrawing to
your bank or debit card using the instant transfer option, the process usually
takes from 10-30 minutes, though it’s possible that your bank could take longer
to reflect the funds in your account.
There are instances in which you aren’t able to withdraw
your money within these time frames. For example, you can get free stock from
Robinhood when you successfully make a referral, which is known as referral
stock. If you sell this referral stock, then you are unable to withdraw the
proceeds of the sale for at least 30 days.
You also may face a longer wait if you wish to withdraw
money to a bank account that is not the same as the one from which you
deposited. If you attempt to do this within 60 days of the deposit, then you
will likely have to provide further details and documentation to the support
team. As annoying as this could be, it is understandable to stop money from
being laundered through a brokerage account.
Why can’t I withdraw my money from
Robinhood?
There are a number of reasons why
you may not be able to withdraw your money from Robinhood, some of
which have already been covered in this article. Here are some possibilities:
You’ve hit your withdrawal limit for the day or reached the
maximum number of withdrawals you can make in one day.
The money you are trying to withdraw may be the proceeds of
a transaction that requires a wait time. This could be the referral stock
mentioned above or money from an equities sale. The latter transaction needs to
“settle” before the funds can be withdrawn, which takes two days.
You just deposited the money from the bank. It takes five
trading days for this money to become available for transactions and
withdrawal.
You have already requested to withdraw the money and the
request is being processed.
You are withdrawing to a different bank account within 60
days of the initial deposit, as outlined in the section above.
Your account has been restricted for any reason.
In the last two examples, you may be required to contact
Robinhood customer service to resolve the issues. Otherwise, it’s probably just
a matter of waiting.
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