Individual Cash is money you deposit into your Robinhood account that sits separate from your invested funds
When you fund a Robinhood account, the money you deposit lands in a holding area called Individual Cash before you use it to buy stocks, ETFs, options, or crypto. It is not invested yet — it is just sitting there, ready to move. Think of it as the wallet inside your brokerage account. You can see your Individual Cash balance on your account dashboard, and it earns no interest while it waits.
Individual Cash is different from settled cash, which is money from sales or dividends that has completed its settlement period and is fully available to trade with immediately. It is also different from buying power, which includes both your cash and the amount you can borrow on margin if you have a margin account. Understanding which bucket your money is in matters because it determines what you can do with it right now.
Key Takeaways
- Individual Cash is uninvested money in your Robinhood account that you have deposited but not yet used to buy securities.
- Cash you deposit takes one to three business days to settle, and you cannot trade with unsettled cash even though you can see it in your account.
- Once cash settles, you can use it to buy stocks, ETFs, options, or crypto without any restrictions.
- Selling a security creates unsettled cash that takes two business days to settle before you can withdraw it or use it again.
How deposits move from Individual Cash into settled cash
When you transfer money from your bank to Robinhood, it shows up in your Individual Cash balance right away. However, you cannot trade with it immediately. The deposit must clear through the banking system, which typically takes one to three business days depending on your bank and the transfer method you used. During this time, the cash is in your account but marked as unsettled.
Once the settlement period ends, your Individual Cash becomes settled cash and moves into your available buying power. At that point you can use it to purchase any security Robinhood offers. If you try to trade before settlement is complete, Robinhood will reject the order or flag it as a violation if you have a cash account versus a margin account.
The difference between Individual Cash and settled cash
Individual Cash refers specifically to money you have deposited that has not yet cleared. Settled cash is money that has completed its clearing period and is now available to trade with or withdraw. The distinction matters because Robinhood's system treats them differently — you have visibility into both, but you can only spend settled cash.
When you sell a stock or receive a dividend, that money also goes through a settlement period. Stock sales settle in two business days, meaning you cannot withdraw the proceeds or use them to buy something else until that period ends. Dividends typically settle within one to three business days. Until settlement completes, that money sits in a holding state even though it appears in your account balance.
Why Robinhood holds deposits before letting you trade
The settlement delay exists because of how the banking and securities systems work, not because Robinhood is choosing to slow you down. When you send money from your bank, it travels through the Automated Clearing House (ACH) network, which is a batch system that processes transfers in cycles. Your bank and Robinhood's bank both have to confirm the transfer is real and the funds exist before the money is truly yours to trade with.
If Robinhood let you trade immediately with unconfirmed deposits, you could theoretically buy securities, sell them for a profit, and withdraw the money before your bank transfer actually cleared — leaving Robinhood holding the loss if your transfer bounced. The settlement period protects both you and the broker from that kind of fraud or error.
How to check your Individual Cash balance
Open the Robinhood app and tap the Account tab at the bottom. Select Buying Power to see a breakdown of your cash and margin. Your Individual Cash balance appears here, along with how much is settled and available to trade. You can also see pending deposits and their expected settlement dates.
If you are using Robinhood on the web, go to your Account menu and select Cash Management or Buying Power. The display shows the same information: how much cash you have deposited, how much has settled, and how much buying power you currently have available. This breakdown helps you understand why you might not be able to trade even though you know you sent money.
What happens to Individual Cash if you do not use it
Cash that sits in your Robinhood account earns no interest. Unlike a savings account at a bank, Individual Cash just stays flat. If you deposit money and leave it there for months without investing it, it will not grow. This is one reason some investors move cash they do not plan to use immediately into a high-yield savings account instead, then transfer it to Robinhood only when they are ready to buy.
You can withdraw Individual Cash back to your bank at any time, as long as it has settled. The withdrawal process typically takes one to three business days. If you have unsettled cash and want to withdraw it, you will have to wait for settlement to complete first.
Individual Cash and margin accounts versus cash accounts
If you have a margin account, Individual Cash works the same way — deposits still take one to three days to settle. The difference is that once your cash settles, a margin account also gives you access to borrowed money (margin) on top of your cash, increasing your buying power. A cash account has no margin, so your buying power is limited to the cash you have actually deposited and that has settled.
Margin accounts come with additional rules and risks. If you borrow money to buy securities and the value of those securities drops, you can receive a margin call requiring you to deposit more cash or sell holdings. Individual Cash itself does not change, but the buying power it creates does.
Frequently Asked Questions
Can I trade with Individual Cash before it settles?
No. Unsettled deposits cannot be used to buy securities. Robinhood will reject any trade attempt using unsettled cash. You must wait for the one to three business day settlement period to complete. Once the cash settles, it becomes available buying power and you can trade immediately.
Why does my deposit show in my account but I cannot trade with it?
Your deposit appears in your Individual Cash balance as soon as it enters Robinhood's system, but it is not yet confirmed by the banking network. The one to three day settlement period allows both banks to verify the transfer is legitimate and the funds actually exist before you can use them.
Does Individual Cash earn interest?
No. Cash sitting in your Robinhood account does not earn interest. If you want your uninvested money to grow, you would need to move it to a separate savings account or money market fund, then transfer it back to Robinhood when you are ready to invest.
What happens to cash when I sell a stock?
When you sell a security, the proceeds land in your account as unsettled cash. Stock sales take two business days to settle. Until settlement completes, you cannot withdraw that money or use it to buy something else. After two business days, it becomes settled cash and is fully available.
Can I withdraw Individual Cash immediately after depositing it?
No. You must wait for your deposit to settle, which takes one to three business days. Once settlement is complete, you can withdraw the cash back to your bank account, though the withdrawal itself will take another one to three business days to process.