Robinhood Withdrawal Process: Why Robinhood Isn't Letting Me Withdraw Cash?

 

Robinhood launched as an innovative platform that offered investors fee-free fractional shares and trading. Some users have encountered issues with withdrawing cash. This has led to frustration and questions. Why does the cash not appear immediately after selling stocks? Why are some funds "available" but not "withdrawable?" There are several issues that can prevent Robinhood withdrawals. However, there are a few simple strategies you can use to resolve them. Link your Robinhood and bank accounts to avoid any delays or complications. Review your account status and withdrawal limits to ensure they do not exceed those set by Robinhood. Finally, follow the company's policies regarding waiting periods.

Tap the Account icon (located in the lower right corner) and choose Transfers to withdraw money from your Robinhood account. You can choose between instant debit card transfers or bank withdrawals (the latter has a 1.5% fee). You can change your mind after you submit a withdrawal request. Simply open the menu and choose History, or go to your bank's website and enter details of your transaction. If you change your mind after submitting a withdrawal request, simply open the menu and select History or visit your banking website and enter transaction details to cancel them through Automated Customer Account Transfer Service (ACATS). So let’s begin and learn more about how to take money out of Robinhood.

 

How to Take Money Out of Robinhood?

Follow these steps if you want to withdraw money from Robinhood into your bank account.

·         Open the Robinhood App on your device, and sign in to your account.

·         The account icon is in the lower right corner of the screen. You will be taken to your account summary.

·         You can manage your funds by tapping on the "Transfers" option in your account settings.

·         Select "Transfer to Your Bank". Robinhood will ask you to choose the bank account into which you would like your funds deposited.

·         Enter the amount that you wish to withdraw. You must have the "withdrawable money" to make the withdrawal.

·         Verify the transaction details. Robinhood typically processes your withdrawal in 1-5 business day, but it can vary depending on the bank.

 

Why Can't You Withdraw Money from Robinhood?

You may have difficulty withdrawing from Robinhood for several reasons:

·         The proceeds of your stock or option sale will not be available for withdrawal until two business days after the trade date. The standard settlement period (the trade date plus two business days) is called T+2. The funds will appear on your account balance until they settle. However, you will not have access to them.

·         The deposit may be held for up to 5 business days. These funds will appear in your account, but you cannot withdraw them until they are cleared.

·         If your account is flagged as suspicious or there are violations of policy, Robinhood can temporarily restrict it, which could prevent withdrawals. Contacting Robinhood customer service can resolve such issues.

·         Robinhood has a daily withdrawal limit of $50,000. If you want to withdraw more money, you will need to spread it out over several transactions or days.

 

 

How to Withdraw Money Robinhood: What Is Withdrawable Cash?

This concept can be confusing to users. What is it and how does it affect your ability to transfer money from Robinhood into your bank?

·         Robinhood withdrawable cash is the amount of money in your account which you can withdraw immediately. This includes settled funds from stock trades, settled proceeds of option trades and cleared deposits in your bank account.

·         Settlement Period: If you sell a stock, the funds are available to withdraw after a settlement period of two business days. During this period, your sale proceeds will appear in your account balance but not your withdrawable funds. These funds will automatically become withdrawable cash after the settlement period.

·         Deposit Hold Time: Robinhood temporarily holds new deposits for up to five days. This is done to ensure that they are cleared. This is standard across all brokerage platforms. The funds will be added back to your withdrawal able cash once the holding period is over.

 

FAQ

 

Why isn't my brokerage cash withdrawable on Robinhood?

Due to recent trade settlements or holdings on new deposits, your brokerage cash might not be available for withdrawal. Before attempting to withdraw funds, ensure that all deposits and trades have been settled.

 

Why is my Robinhood account restricted from withdrawal?

If you have unusual activity on your Robinhood account, are a new user who is undergoing verification or there is a possible policy violation, then withdrawals may be restricted. Contact Robinhood Support to resolve any restrictions issues.

 

How long do I have to wait to withdraw cash from Robinhood?

After selling options or stocks, you must wait two business days for the settlement. A five-day hold is also applied to deposits. The funds are usually withdrawable after these time periods.

 

Why can't I withdraw money from Robinhood after selling?

The funds are settled two days after the stock is sold. They are not a part of your cash withdrawals and cannot be transferred into your bank account until then.

 

How do I get my money out of Robinhood?

Enter the amount and click "Confirm". Make sure that you have enough cash to complete the transaction.