Trading and cryptocurrency are hot right now, and loads of people manage their finances through Robinhood. However, since the app deals with money and finances, it’s got several security measures and restrictions. In some cases, you may find that you can’t withdraw money from Robinhood. What causes your funds to get locked, and what can you do to fix it? Here’s what you need to know.
Reasons why you can’t withdraw money from Robinhood
There are several reasons why you may not be able to withdraw money from Robinhood. The most common reason is trying to remove funds before the settlement period is over. It’s also possible that you may have made too many withdrawals in 24 hours, or that you’re trying to withdraw too much money. Otherwise, it may be that you can’t take out funds due to account restrictions.
In most cases, the issue comes down to the settlement period. Following each sale, the money in your Robinhood account needs to “settle” before it can be transferred. This period includes the trade date plus two additional days; on or after the third, you’ll be able to withdraw it. Crypto-based transfers also have other restrictions.
Beyond that, and assuming your account has already been approved, you’ll only be prevented from removing funds if you’re going over the withdrawal limit. Robinhood only allows up to five withdrawals per business day. Any more than that will be denied. In addition, you can only withdraw up to $50,000 dollars per business day across all withdrawals.
Otherwise, you may have some sort of account restriction. These are far less common, typically only appearing for users who change their linked bank account or have shown unusual behavior or trade patterns. If you suspect your account may be restricted, you’ll need to get in touch with Robinhood support directly.
If you can’t withdraw money from Robinhood, check to make sure the funds aren’t still in the settlement period. Assuming the money is free to be moved, you’re eligible for five withdrawals with a combined value of up to $50,000 in value every business day. Any number or figure higher than that, and you won’t be able to withdraw your funds.
