How to Withdraw Money from Robinhood: A Comprehensive Guide

Learn how to withdraw money from Robinhood in this comprehensive guide. This step-by-step tutorial covers various withdrawal options, such as ACH transfer, check, wire transfer, and the Instant feature.

I. Introduction

Robinhood is a popular investment app used by millions of people worldwide. It offers commission-free trading of stocks, ETFs, options, and cryptocurrencies. However, investing involves risk, and at some point, you may want to withdraw your profits or capital from your Robinhood account. In this article, we’ll be focusing on the different withdrawal options available on Robinhood and how to use them to withdraw your money.

II. Step-by-Step Guide to Withdrawing Money from Robinhood

Before we dive into the withdrawal options provided by Robinhood, we’ll provide you with a general overview of the withdrawal process.

Open your Robinhood app on your smartphone or desktop.
Ensure that you have updated your personal information, including your address and bank account details, to avoid any withdrawal delay.
Navigate to the ‘Account’ tab at the bottom of the app.
Select the ‘Transfer’ sub-tab to initiate the withdrawal process.
Choose your preferred withdrawal option and follow the prompts to complete the withdrawal process.

Now that you have an overview of the withdrawal process let’s dive into the different withdrawal options provided by Robinhood.

III. Withdrawing via ACH Transfer

An ACH transfer is a standard method of transferring funds electronically between banks in the United States. It’s a secure, reliable, and straightforward way to withdraw your money from Robinhood. Here are the steps to withdraw money from Robinhood via ACH transfer:

Ensure that your bank account is linked to Robinhood. If not, follow the steps below:

Navigate to the ‘Account’ tab at the bottom of the app.
Select the ‘Banking’ sub-tab.
Tap ‘Add New Account.’
Search and select your bank from the list of banks provided, then enter your account and routing number.

Once your bank account is linked, navigate to the ‘Transfer’ sub-tab and choose ‘Withdraw Funds.’
Select your bank account and enter the amount you want to withdraw.
Tap ‘Preview’ to review your withdrawal request.
Finally, tap ‘Submit Withdrawal’ to complete the process.

Note that ACH transfers may take up to five business days to reflect in your bank account, depending on your bank.

IV. Using a Check as an Option

If you prefer to receive a paper check, you can use this withdrawal option. However, there are some caveats to using this option, such as the cost and the time it takes for the check to arrive. Here’s how to withdraw money from Robinhood via check:

Navigate to the ‘Transfer’ sub-tab under the ‘Account’ tab.
Choose ‘Withdraw Funds.’
Select ‘Standard,’ then ‘Mail Check.’
Enter the amount you want to withdraw and confirm your mailing address.
Tap ‘Preview’ to review your request, then ‘Submit Withdrawal.’

Once your check arrives, you can cash it at your bank or deposit it into your account. Note that the check may take up to ten days to arrive in your mailbox.

V. Wire Transfer Guide

Wire transfers are suitable for large transactions or if you prefer the funds to reflect in your account promptly. Here’s how to withdraw money from Robinhood via wire transfer:

Ensure that your bank account is linked to Robinhood. If not, follow the steps outlined in the ACH transfer section.
Navigate to the ‘Account’ tab and select the ‘Transfer’ sub-tab.
Select ‘Withdraw Funds.’
Choose ‘Wire Transfer’ as your preferred option.
Enter your bank details, including the bank name, routing number, and SWIFT code.
Enter your name as it appears on your bank account and confirm the withdrawal amount.
Tap ‘Preview’ to review your request.
Finally, tap ‘Submit Withdrawal’ to complete the process.

Wire transfers are quicker than ACH transfers and can take up to one business day to reflect in your account. However, note that they attract a $25 fee from Robinhood and additional fees from your bank.

VI. How to Get Physical Cash out of Your Account

If you prefer to get physical cash out of your Robinhood account, you can do so via selling off your stocks and ETFs. Follow the steps below to sell off your securities:

Navigate to the ‘Investing’ tab on the app.
Select the security you want to sell, then tap ‘Sell.’
Enter the number of shares you want to sell, then hit ‘Preview.’
Review your order, including the estimated proceeds.
Finally, tap ‘Submit Order’ to sell your securities.

Once the sale is executed, you can withdraw the funds via any of the methods outlined above.

VII. Robinhood Instant – Rapid Withdrawals

Robinhood Instant is a feature that allows you to instantly access up to $1000 of your deposit when you initiate a withdrawal. Here’s how to use Robinhood Instant to withdraw your funds:

Navigate to the ‘Account’ tab and select the ‘Transfer’ sub-tab.
Choose ‘Withdraw Funds.’
Select your bank account and the withdrawal amount.
Enable the ‘Instant’ feature to access up to $1000 of your withdrawal instantly.
Tap ‘Preview’ to review your request.
Finally, tap ‘Submit Withdrawal’ to complete the process.

Note that there’s a 0.3% fee charged for using the ‘Instant’ feature. Additionally, you need to have a Robinhood Gold account subscription to use this feature.

VIII. Conclusion

In conclusion, Robinhood provides several withdrawal options for you to access your funds. However, note that each option attracts different fees and wait times. It’s essential to choose an option that suits your needs and preferences. We hope this detailed guide has provided you with insights on how to withdraw your money from Robinhood promptly and safely.