How to Withdraw Money from Robinhood: A Complete Step-by-Step Guide
Withdrawing money from Robinhood is a straightforward process, but many users get confused due to settlement periods, withdrawal limits, and bank verification rules. If you are new to investing or using Robinhood, understanding how withdrawals work can help you avoid delays, failed transfers, or unexpected restrictions. This comprehensive guide explains how to withdraw money from Robinhood, how long it takes, common problems users face, and how to fix them.
What You Need to Know Before Withdrawing Money from Robinhood
Before you initiate a withdrawal, it is important to understand a few key concepts that directly affect how and when you can access your funds.
1. Buying Power vs. Withdrawable Cash
Robinhood displays several balances in your account, and confusing them is one of the most common mistakes:
- Buying Power: Money available to invest in stocks, ETFs, or crypto.
- Withdrawable Cash: Money that is fully settled and eligible to be transferred to your bank account.
You can only withdraw withdrawable cash, not buying power that comes from unsettled trades.
2. Settlement Period
When you sell stocks or ETFs, the cash does not become immediately withdrawable. Robinhood follows standard settlement timelines:
- Stocks and ETFs: T+2 (two business days)
- Options: T+1 (one business day)
- Cryptocurrency: Funds are usually available once the trade is completed, but bank transfer rules still apply
Until the settlement period is complete, your money cannot be withdrawn.
3. Linked Bank Account Requirement
To withdraw money from Robinhood, you must have a verified bank account linked to your profile. Robinhood does not support cash withdrawals, checks, or third-party wallets for standard withdrawals.
Step-by-Step Guide: How to Withdraw Money from Robinhood
Withdrawing money from Robinhood can be done easily using the mobile app or the website. Below is the complete step-by-step process.
Step 1: Open the Robinhood App or Website
- Log in to your Robinhood account using the mobile app or visit the official website.
- Ensure your app is updated to avoid errors during withdrawal.
Step 2: Go to the Menu
- Tap the Menu (☰) icon in the bottom-right corner of the app.
- On the web version, click on your account profile.
Step 3: Select Transfers
- Choose Transfers or Transfers & Payments from the menu.
- This section manages deposits and withdrawals.
Step 4: Choose Transfer to Your Bank
- Select Transfer to Your Bank.
- Robinhood will show the amount of withdrawable cash available.
Step 5: Enter the Withdrawal Amount
- Enter the amount you want to withdraw.
- You can withdraw the full balance or a partial amount.
Step 6: Confirm the Withdrawal
- Review the details carefully.
- Confirm the transfer.
Once confirmed, the withdrawal request is submitted.
How Long Does It Take to Withdraw Money from Robinhood?
Withdrawal times depend on the transfer method you choose.
Standard Bank Transfer
- Takes 1 to 5 business days
- Free of charge
- Most common option
Instant Transfers (Robinhood Gold)
- Available for eligible users
- Funds may arrive the same day or next business day
- Subject to limits and fees
Weekends and bank holidays can delay processing times.
Robinhood Withdrawal Limits
Robinhood applies certain withdrawal limits to prevent fraud and comply with regulations.
Daily Withdrawal Limits
- Up to $50,000 per business day for standard users
- Higher limits may apply to verified or Gold accounts
ACH Transfer Limits
- Limits may vary depending on your bank
- Newly linked accounts may have lower limits
If you hit a limit, you must wait until the next business day to withdraw more funds.
Common Problems When Withdrawing Money from Robinhood
Many users experience issues during withdrawals. Below are the most common problems and how to resolve them.
1. Funds Not Withdrawable
Reason:
- Recent stock or option sale still settling
Solution:
- Wait for the settlement period to complete
2. Bank Transfer Failed
Reason:
- Incorrect bank details
- Bank account not verified
Solution:
- Recheck bank information
- Verify the bank account again
3. Account Restrictions
Reason:
- Suspicious activity
- Identity verification issues
Solution:
- Complete any pending verification
- Contact Robinhood support if restrictions persist
4. Withdrawal Reversed
Reason:
- Insufficient withdrawable cash
- Bank rejected the transfer
Solution:
- Ensure funds are fully settled
- Contact your bank for clarification
How to Withdraw Money from Robinhood Without a Bank Account
Robinhood does not support direct withdrawals without a linked bank account. However, you can:
- Link a different bank account
- Use a supported debit card for eligible instant transfers
Third-party payment apps and wallets are generally not supported for withdrawals.
Withdrawing Cryptocurrency from Robinhood
Robinhood allows crypto transfers for supported assets and eligible users.
Steps to Withdraw Crypto
- Enable crypto transfers in settings
- Verify your identity
- Select the cryptocurrency
- Enter the external wallet address
- Confirm the transfer
Crypto withdrawals may include network fees and processing delays.
Tax Considerations When Withdrawing Money from Robinhood
Withdrawing money itself is not taxable, but selling investments may trigger taxes.
- Capital gains tax may apply
- Short-term gains are taxed differently than long-term gains
- Robinhood provides tax documents annually
Consult a tax professional for personalized advice.
Tips to Avoid Withdrawal Delays
- Always wait for trade settlement
- Keep your bank account verified
- Avoid frequent account changes
- Withdraw during business days
Following these steps can reduce the risk of failed or delayed withdrawals.
Is It Safe to Withdraw Money from Robinhood?
Yes, Robinhood uses encryption and security measures to protect transactions. However, users should:
- Enable two-factor authentication
- Monitor account activity regularly
- Avoid using public Wi-Fi during transactions
Final Thoughts
Learning how to withdraw money from Robinhood is essential for managing your investments efficiently. While the process is simple, understanding settlement periods, withdrawal limits, and bank verification rules can save you time and frustration. By following the steps and tips outlined above, you can ensure a smooth and secure withdrawal experience every time.
If your withdrawal is delayed or fails, reviewing the common issues section can help you resolve the problem quickly without unnecessary stress.