How to Withdraw Money from Robinhood in California?
If you’re new to using Robinhood, you may wonder how to withdraw money from the app. This article will provide a clear and easy-to-understand guide on the process of withdrawing money from Robinhood.
But first, let’s see more about what Robinhood is, and no, we don’t mean the character from the famous novel of the same title.
Robinhood is a financial platform based in Menlo Park, California, launched in 2013. Using Robinhood, you can open a brokerage account to buy and sell stocks, options, exchange-traded funds (ETFs), and cryptocurrencies without paying any commission fees, being designed to make the process of trading and investing in the stock market more accessible and affordable for the average person.
Withdrawal limit Robinhood: Standard accounts have a $50,000 per business day limit, while Robinhood Gold accounts can withdraw up to $1 million per business day.
How to Withdraw Money from Robinhood – Introduction
Are you wondering how to withdraw money from your Robinhood brokerage account? Don’t worry. It’s quite simple! But before you start, it’s important to understand the terms and conditions of the withdrawal process.
One thing to remember is that there are limits on how much you can withdraw. For example, you can only make up to five withdrawals per day, and the maximum amount you can withdraw per day is $50,000.
It’s essential to keep these limits in mind, as exceeding them can cause your account to be restricted. Even if it may seem like a lot of money, many users who have built up large portfolios can reach these limits quickly.
How to Withdraw Money from Robinhood: Rules for Withdraw Money from Robinhood App
Before getting started to discover how to withdraw from Robinhood or transfer funds into your personal bank account, you must be aware of the following rules:
30-Day Waiting Period for Withdrawing Funds from Free Stock Sales – Did you receive free stock through Robinhood’s Referral program? While you can sell that stock immediately, there’s a catch. You’ll need to keep the cash value of the stock in your account for 30 days before you can withdraw it.
Special Rules for Switching Bank Accounts on Robinhood – If you originally deposited funds with one bank account and now want to transfer your money to a different bank account, be cautious. Robinhood has specific rules for such transactions, as they can raise suspicion. To ensure a smooth process, you might be asked to provide supporting documents, such as pictures of your photo ID or bank statements, to verify ownership of both bank accounts. To avoid inconvenience, consider withdrawing your cash into the same bank account that funded your account.
Withdrawal Restrictions during Account Restrictions – In certain circumstances, Robinhood may restrict user accounts. These restrictions can arise if your account has a negative balance, experiences a reversed bank transaction, or if there are suspicions of fraud, among other reasons. If your account is restricted, it’s important to note that you may not be able to withdraw any money until you’ve contacted Robinhood to resolve the issue.
Next, let’s see this guide that will break down the steps for withdrawing money from Robinhood systematically and easily.
How to Withdraw Money from Robinhood – Step-by-Step Guide
Although it may seem logical, we still mention that you need to have a bank account to withdraw or deposit money more easily from Robinhood. A bank account is a financial tool offered by a bank that enables individuals or businesses to deposit, withdraw, and manage their funds through a designated account. A bank account serves as a secure repository for an individual’s or business’s funds, allowing them to track their expenses and savings over time.
A bank account may be opened with various institutions, including commercial banks, savings and loan associations, credit unions, and online banks. Also, remember that many banks offer the possibility to open a bank account directly from your phone, so you can easily open one if you don’t have a bank account.
Withdrawing money from your Robinhood app is easy, but the process can vary depending on whether you use the mobile app or the website.
If you’re using the mobile app:
Step 1: First, go to the account section. This step requires you to have the Robinhood application installed on your phones. Then, open the application and tap on the ‘Account’ icon. This icon is located at the bottom-right corner of the application.
Step 2: Locate the ‘Transfers’ button and click on it.
Step 3: After that, choose the option that is available in the ‘Transfer to your Bank.’ Don’t forget that you’ll need a linked bank account or linked bank accounts.
Step 4: A list will appear on the user’s screen, after which you should identify the bank you wish to make the withdrawal.
Step 5: Enter the amount you wish to withdraw. Robinhood allows its users to withdraw the total amount or part of the amount, depending on how much money they require. This is essential especially when asking to withdraw all funds from Robinhood.
Step 6: Finally, double-check the pending transaction before you confirm and let the processing begin. After this step you will see a confirmation prompt and the money will soon arrive in your bank account.
Suppose you don’t want to withdraw through your phone. In that case, it is as simple to withdraw money from Robinhood using a desktop as it is to withdraw through mobile but slightly different. Since there is no application, you will use your browsers to locate the Robinhood website in this case.
If you’re using the website:
Step 1: The first step is choosing a favorite browser and logging into a personal Robinhood account using personal details.
Step 2: Once logged in, you should locate the ‘Account’ button, which, this time, is located at the top-right corner of the screen.
Step 3: Click on the ‘Banking’ option to prompt the form you need to fill in the amounts you wish to withdraw. Once you have entered the desired amount, you can confirm the transaction and wait for the funds to reach the bank account.