Transferring money to a bank account is possible through a variety of financial platforms, and Robinhood is one of them.
There are fees associated with some of these institutions, while others are not. Furthermore, the fees you pay are determined by the mode of transfer you choose.
A 1.5 percent fee is charged for instant transfers of funds to a bank account through Cash App, whereas the standard method, which takes 1-3 business days, does not require payment.
This article explores the various means you can make a transfer from a Robinhood account to your bank account easily. You will also learn more about the platform, how they generate funds, and the easy way to sign up.
Table of Contents
- What exactly is Robinhood?
- How Does Robinhood Make Money
- What types of products does Robinhood have to offer?
- Why Should I use a Robinhood cash management account?
- How do you become a member of Robinhood?
- How to Transfer Money from Robinhood to a Bank Account
- Are my Robinhood referral earnings able to be withdrawn to my bank account?
What exactly is Robinhood?
Robinhood is a financial institution that provides financial services to consumers. The company provides a commission-free stock trading platform as well as the ability to exchange-traded money through the use of a mobile application.
Robinhood began operations on April 18, 2013, with its founders, Vladimir Tenev and Baiju Bhatt, as the company’s first customers in Menlo Park, California, United States.
Currently, the bank has 1,281 employees, and an estimated $20 billion in assets under management, according to the company’s statistics.
How Does Robinhood Make Money
Robinhood earns its money from three primary sources. They are as follows:
- Customers’ cash balances are earning interest.
- Selling order information to high-frequency traders is a common practice.
- Margin lending is a type of lending where you lend money on the margin.
What types of products does Robinhood have to offer?
Robinhood offers a wide range of products, some of which are listed below:
1) Trading in stocks and exchange-traded funds (ETFs).
Those interested in stock trading can take advantage of Robinhood’s commission-free investing services. You’ll also receive the resources you’ll need to put your investment into action.
When you sign up, you will receive your very first stock absolutely free. It’s interesting to note that you can invest as little as $1.
Robinhood allows you to convert any amount of dollars into fractions of a whole share of stock. You will also be able to trade in real-time and benefit from the current market prices of the stocks you are interested in.
Everything is also online, and you can trade right from your smartphone, allowing you to meet both sellers and buyers in one convenient location.
Stockbrokers act as a middleman between buyers and sellers, and they are also the ones who execute the trades.
For your information, there are 13 stock exchanges in the United States, the most well-known of which are the New York Stock Exchange and the Nasdaq.
The stock market is comprised of three primary activities. They are as follows:
i] Stock acquisition
Every day, individual and institutional investors purchase stock in publicly traded companies. Every second, minute, hour, and so on, there is usually a flurry of buying of stocks taking place.
ii) The sale of stock
When investors purchase stock in a company, they hold on to the stock until the price rises and then sell to willing buyers. The seller stands to gain financially as a result of this.
iii) Issuance of stock certificates
Companies that issue stocks do so in order to raise funds by selling a portion of their company’s stock.
A company may return to a stock market platform in order to make a secondary public offering, in which case it will sell additional shares in order to raise additional funds.
Other activities include trading in exchange-traded funds (ETFs) and other financial instruments (ETFs).
ETFs are types of securities that track a sector, an index, a commodity, or other assets and can be bought and sold on a stock exchange just like a regular stock. ETFs are traded on a stock exchange just like a regular stock.
2) Managing cash flow
Customers who are willing to use Robinhood’s cash management services can do so. When you use the cash management feature on your Robinhood Financial LLC brokerage account, you can earn interest on the money that is swept to the program banks each month.
As a result, if you invest a portion of your money in stocks and the rest in bonds, you can earn a 0.30 percent annual percentage yield.
Sutton Bank offers Mastercard debit cards, which can be obtained by applying online.
Furthermore, the cash management account enables you to pay bills, send checks, and receive your paycheck with relative ease and convenience.
It is possible to withdraw money from more than 75,000 ATMs across the country using your Robinhood Mastercard debit card. ATMs that accept the Robinhood debit card can be found in all 50 states.
Furthermore, Robinhood debit card in-network ATMs are available in Puerto Rico, the United States Virgin Islands, and some international locations.
You can use your app to find a nearby on-net ATM that accepts your card. To locate an ATM in your area, click here.
- Select the Cash Management option from the drop-down menu.
- Ensure that you have reached the bottom of your phone’s screen.
- Select “See ATMs in the Area” from the drop-down menu.
All ATMs within the network are completely free. Other internet ATMs may charge you a fee for the use of their services as well. Robinhood, on the other hand, does not receive a portion of those fees.
The benefit of using a Robinhood cash management account is that you can withdraw your uninvested funds at any time and as many times as you want.
Again, if you want to earn a significant amount of interest, make sure that the money that has not been invested remains in the program banks for as long as possible.
Keep in mind that Robinhood does not pay interest rates; rather, the partner banks are the ones who will pay you interest on the money you have swept over to their side of the table.
Other benefits of a Robinhood cash management account include the following:
- There are no account-opening fees.
- There is no required minimum balance.
- It is not necessary to pay any account maintenance fees.
- There are no inactivity fees.
- There will be no overdrafts.
- There are no fees for international transactions.
Why Should I use a Robinhood cash management account?
Because the partner banks are insured by the Federal Deposit Insurance Corporation, the cash management account from Robinhood is completely secure.
As a result, your money is safe up to $250,000 in each of our partner banks in the event of a disaster. The Robinhood Mastercard debit card also comes with Mastercard Zero Liability Protection, which means that if someone uses your card to purchase goods and services illegally, you will not be held liable for any losses resulting from that transaction. You must, however, notify Robinhood as soon as possible if your card is lost or stolen.
Furthermore, because Robinhood Financial LLC is a member of the Securities Investor Protection Corporation, you will not lose any of your money if the company goes out of business. Your securities up to the value of $500,000 are covered by insurance.
When you sweep the balance to program banks, the insurance policy is transferred to the Federal Deposit Insurance Corporation (FDIC).
How do you become a member of Robinhood?
You can open a Robinhood account by clicking on a referral link or by visiting the “Open my Account” page. To get started, you’ll need the following materials and supplies.
- You must be at least eighteen years old.
- Have a Social Security Number that is up to date
- Have a permanent residence in the United States, preferably one of the 50 states or Puerto Rico.
Active duty military personnel from the United States who are stationed abroad may not be able to rely on this requirement.
You must be a citizen of the United States or possess a valid visa to enter the country. For web-based accounts, you’ll also need a smartphone or tablet (running Android or iOS) or a computer to complete the process.
The following steps are required to complete the signup process:
1) Create an account with us.
A variety of personal information, including your full name and email address, will be requested from you during this stage.
You’ll also need to create a username and password for yourself. Using a smartphone or tablet to set up your account is preferable if you plan on making financial investments with your money.
Because all of Robinhood’s trading services are performed on a mobile phone, the company will always ask whether you are using an Android or an iOS device.
You can, on the other hand, use your computer to sign up and sign in on a mobile phone app in order to start trading right away.
2) Fill out the form with your contact information.
You should include contact information such as your phone number, city, ZIP code, state, and mailing address for your residence.
You will also be asked a variety of other questions, such as whether you have an immediate relative who works for the Financial Industry Regulatory Authority (FINRA) or any of its member firms, such as the Robinhood brokerage itself. Most likely, you will respond in the negative.
3) Confirm your identification
This section of the process is where Robinhood will explain why they require your Social Security Number. The federal government’s collection of Social Security Numbers is required in order to prevent money laundering and terrorism in the stock market, among other things.
Your Social Security number, marital status, citizenship status, the number of dependents you have, your employment status, and your date of birth should all be provided when verifying your account.
In order to proceed, you must provide complete and accurate information at this stage.
4) Make a deposit into your account.
Given that you are almost finished with the sign-up process, you will now need to fund your account. Robinhood will explain that there are no fees associated with depositing or withdrawing money from your account.
You can link your bank account to your Robinhood account and use that account to fund your Robinhood account. Wells Fargo Chase Bank, Bank of America, Citi Bank, and PNC are just a few of the financial institutions that are supported.
You can open an account with as little as $1 in your bank account.
5) Complete and submit the application
At this point, you are on the verge of finishing the process. Following a thorough review of the terms and conditions, click on “Submit Application.”
6) Install the Robinhood mobile application.
As soon as you have submitted your information, a page will appear instructing you on how to download the Robinhood mobile application.
Use the Google Play Store to download it if your phone runs on the Android operating system. You can download it from the App Store if you have an iOS phone or tablet.
As well as the message “Application submitted,” you will also receive a message in your email address stating that you must either wait for approval or decline the application.
How to Transfer Money from Robinhood to a Bank Account
Transferring funds from Robinhood to a bank account can be complicated. Following a successful trading session in which you earn a substantial profit, you may wish to transfer your funds from your Robinhood account to your bank account.
By providing additional information, you can add a bank that is different from the one from which you made the deposit.
To make a withdrawal to a bank other than the one you selected when you opened your account, you must do the following:
- Inform me as to why you are unable to withdraw funds from your original bank account.
- Upload a photo of the front and back of your government-issued identification card.
- Provide photographs or PDF documents containing the bank statements from the two financial institutions to demonstrate that you are the legal owner of all of the accounts.
You’ll also need to include the amount you want to withdraw as well as the bank account you want to withdraw it to.
In order to transfer funds to your bank account, select either a partial or a complete withdrawal and then follow the steps outlined below:
- Click on “Account” in the bottom right corner of your screen to access your account information.
- Transfers can be found under Transfers, where you can select “Transfer to Your Bank.”
- Decide on the bank account to which you want to transfer the funds.
On the other hand, if you are using the internet, you must follow the steps outlined below.
- Click on “Account” in the upper right-hand corner of your screen.
- Banking is the option to choose.
- Start the transfer to your bank and the collection of your Social Security Number from Robinhood by using the panel on the right side of the screen.
Note, the money may remain visible for up to five trading days after you have submitted your withdrawal request, but you will be unable to trade with it during that time.
And if you withdraw money from your Robinhood account into a bank other than the one with which you opened the account, it may take up to sixty days for Robinhood to verify the account, resulting in a lengthy wait.
Moving forward, if there is no serious problem with your first bank, it will continue to be your best option if you require the money in a timely manner. There are numerous benefits to having money in your bank account, including the ability to pay bills and withdraw cash from an ATM, among other things.
Note, you can also send money instantly to other accounts within your bank by using a checking account number as the recipient.
Are my Robinhood referral earnings able to be withdrawn to my bank account?
Robinhood allows you to earn money by referring friends and family. Once your friend registers and links a bank account to his or her profile, both of you will receive stock dividends.
Each calendar year, you have the potential to earn up to $500. You must, however, wait for 30 days after opening your account before you can cash out your points and rewards.
Regrettably, Robinhood does not provide you with any information about who has joined as a result of your referral link. You can put your trust in them to be truthful and to reward you for the work you have done.
How To Transfer Money from Robinhood | FAQS
The transfer services provided by Robinhood are not subject to a high fee. Some restrictions apply, while other types of transactions may be subject to a significant surcharge.
Transferring money from Robinhood to a bank account, on the other hand, is completely free of charge.
You will only be able to close your Robinhood account once all of the funds have been depleted.
To accomplish this, you must cancel all of your trades and withdraw the remaining balance. When you have $0 in your account, go to Account > Account Information > Account Information. Then click on
Robinhood allows you to generate income by purchasing and selling stocks. You can also open a cash management account and earn an annual percentage yield of up to 0.30 percent.
You can also earn money from referrals, with a maximum earning potential of $500 per calendar year. Insurance protects the money in your cash management account as well as the money in your brokerage account.
Opening a Robinhood account is completely free, and you can start trading with as little as $1 in your account balance.