Robinhood is a commission-free trading app that allows users to trade stocks, ETFs, options, and cryptocurrencies.
If you need to withdraw money from your Robinhood account to your bank, you have multiple options, including traditional bank transfers and using the Robinhood debit card.
However, before initiating a withdrawal, it's essential to understand processing times, withdrawal limits, fees, and settlement periods to avoid delays or unexpected costs.
1. Bank Account Transfer
A bank transfer is the most common method for withdrawing money from Robinhood. Here’s how to do it:
- Open the Robinhood app on your mobile device.
- Tap on the account icon (typically in the bottom right corner of the app).
- Select the ‘Transfers’ option.
- Choose ‘Transfer to Your Bank’ from the available options.
- Enter the amount you wish to withdraw.
- Review your withdrawal request and confirm the transaction.
- Your withdrawal request will be processed, and the funds will be transferred to your linked bank account.
Processing Times
- Standard bank transfers typically take 2-5 business days to complete.
- Instant transfers (if eligible) provide funds within 30 minutes, but incur a fee of up to 1.75% of the transfer amount.
Withdrawal Limits & Fees
- Robinhood allows up to $50,000 per day for bank withdrawals.
- Standard ACH withdrawals are fee-free, but instant transfers are subject to fees.
2. Robinhood Debit Card
Robinhood offers a debit card that allows you to withdraw cash from ATMs or make purchases like a regular Visa debit card.
How to Use the Robinhood Debit Card:
- Request a Robinhood debit card through the app (Settings → Cash Card section).
- Once received, activate your card using the instructions provided.
- Use the card at ATMs or for purchases where Visa debit cards are accepted.
ATM & Spending Limits
- Daily ATM withdrawal limit: $1,000
- Maximum point-of-sale purchases: $5,000 per day.
- Additional fees: Some ATMs may impose their own fees; Robinhood does not reimburse these charges.
Settlement Periods for Withdrawals
If you recently sold stocks, ETFs, or options, the settlement period affects when your funds become available for withdrawal:
- Stocks & ETFs: T+1 (Trade Date + 1 Trading Day)
- Options Trades: T+1 (Trade Date + 1 Trading Day).
This means if you sell a stock on Monday, the cash from that sale will be available for withdrawal on Tuesday.
Restrictions & Considerations
Before withdrawing, keep these restrictions in mind:
- Pending Deposits: Funds from a recent deposit must clear before they can be withdrawn.
- Referral Stock Proceeds: If you received free stocks via Robinhood’s referral program, their cash value must remain in your account for at least 30 days before withdrawal.
- Bank Account Changes: If you recently changed your linked bank account, Robinhood may impose a temporary withdrawal hold.
Recent Developments
Robinhood has introduced additional banking features, including:
- Enhanced interest rates on uninvested cash for Robinhood Gold members.
- Faster fund access for eligible users via their online banking platform.
- On-demand cash delivery, allowing users to withdraw funds without waiting for bank transfers.
