The basic process: sell first, then transfer
To pull money out of Robinhood, you must first sell whatever you own — stocks, ETFs, crypto, or options — then transfer the cash to your bank account. Robinhood does not let you withdraw shares themselves; the money has to be in your account as cash before it can leave the platform.
The sale itself is immediate during market hours. The cash arrives in your Robinhood account right away. The transfer to your bank takes one to three business days, depending on your bank and whether the market was open when you sold.
You cannot withdraw money you do not have. If you have a margin account and borrowed money to buy, you must repay the loan before you can transfer anything out. Robinhood will not let you move cash if doing so would leave you with a negative balance.
Key Takeaways
- Selling your holdings puts cash into your Robinhood account immediately, but transferring that cash to your bank takes one to three business days.
- If you have borrowed money on margin, you must repay the loan before you can withdraw; Robinhood blocks transfers that would leave your account negative.
- Unsettled cash from recent sales may not be available to withdraw right away — it typically settles within two business days.
- You set up a linked bank account in the app under Account settings before you can transfer money out for the first time.
Selling your holdings to create cash
Open the Robinhood app and tap the position you want to sell. Tap "Sell," choose how many shares or how much crypto you want to move, and confirm the order. For stocks and ETFs, the sale executes during market hours; for crypto, Robinhood trades 24/7.
The cash from the sale lands in your account balance immediately. You will see it listed under "Buying Power" or "Cash Available." This is the money you can transfer out, but only after it settles — which usually takes two business days for stock sales.
If you sell during after-hours trading or on a weekend, the order queues until the market opens. Crypto sales settle faster, often within hours. Check your account history to see the exact time your sale went through.
Linking a bank account for transfers
Before you can move money out, you need to link a bank account. Tap your profile icon in the app, go to Account, then Transfers, and select "Link a Bank Account." Robinhood will ask for your routing number and account number — you can find both on a check or by logging into your bank's website.
Robinhood verifies the account by making two small deposits (usually under a dollar each) to your bank. Your bank will show these deposits within one to two business days. Once they arrive, go back into the Robinhood app and enter the amounts to confirm the account is yours.
You only have to do this once. After verification, the account stays linked and you can transfer money whenever you want.
Starting a withdrawal and what to expect
In the Robinhood app, tap your profile, go to Account, then Transfers. Select "Transfer to Your Bank" and choose how much cash you want to move. Robinhood will show you the available balance — this is the cash that has already settled and is ready to leave.
Confirm the amount and the linked bank account, then submit. Robinhood sends the money to your bank immediately, but your bank controls when it actually shows up in your account. Most banks post transfers within one business day; some take up to three.
You will get a confirmation in the app showing the transfer date and amount. Your bank may send you a separate notification when the money arrives. If the transfer does not show up within three business days, contact Robinhood support with your transfer confirmation number.
Unsettled cash and why you cannot withdraw it yet
When you sell stocks or ETFs, the cash does not settle immediately. The stock market has a two-business-day settlement period, which means the money is technically yours but Robinhood cannot let you transfer it until the settlement is complete. During this waiting period, the cash shows as "unsettled" in your account.
You can use unsettled cash to buy other stocks right away — Robinhood lets you do that — but you cannot transfer it to your bank until it settles. If you try to withdraw unsettled cash, the app will show you only the settled balance available.
Crypto sales settle much faster, usually within a few hours, so you can withdraw crypto proceeds sooner than stock proceeds. If you need cash quickly, selling crypto is often the faster route.
Margin accounts and repaying borrowed money
If you have a margin account, you can borrow money from Robinhood to buy stocks. That borrowed money is a debt you owe. Before you can withdraw any cash, you must repay the full loan amount.
Robinhood calculates your available cash after subtracting what you owe. If you have $5,000 in your account but owe $2,000 in margin debt, you can only withdraw $3,000. The app shows your margin balance under Account details, and you can see exactly how much you owe.
To repay margin debt, transfer money into your Robinhood account from your bank (the reverse of a withdrawal). Once the money settles, it automatically pays down your margin loan, and then you can withdraw the rest.
Fees and taxes on withdrawals
Robinhood does not charge a fee to transfer money to your bank. The withdrawal itself is free. Your bank might charge a fee for receiving an external transfer, but most do not — check your bank's fee schedule if you are unsure.
Withdrawing money is not a taxable event. You only owe taxes on the gains when you sell the investment, not when you move the cash out. If you sold at a profit, you will owe capital gains tax on that profit when you file your taxes, regardless of whether you withdrew the money.
Keep records of your sales for tax time. Robinhood provides a tax document (Form 1099) at the end of the year if you had taxable events, but you should track your own cost basis and sale prices to make sure the form is correct.
Frequently Asked Questions
How long does it take to withdraw money from Robinhood?
Selling takes seconds during market hours. The cash settles in your account within two business days for stocks. The transfer to your bank takes one to three business days after that. Total time is usually three to five business days from the moment you sell.
Can I withdraw money if I have unsettled cash?
No. Robinhood only lets you transfer settled cash. Stock and ETF sales settle in two business days. Crypto settles faster, usually within hours. The app shows you exactly how much settled cash you have available to withdraw.
What happens if I try to withdraw more than I have?
Robinhood will not let you submit a withdrawal larger than your available balance. The app caps the amount you can enter at whatever cash has settled and is not owed as margin debt. If you try to exceed it, you will get an error message.
Do I pay taxes when I withdraw money?
No. Withdrawing cash is not a taxable event. You owe taxes only when you sell an investment at a gain. The withdrawal itself does not trigger any tax bill — you will report the sale on your tax return, not the withdrawal.
Can I withdraw to a different bank account than the one I linked?
No. Robinhood only transfers to the bank account you linked during setup. If you want to use a different account, you have to unlink the old one and link the new one. The verification process takes one to two business days.