Why Can‘t I Withdraw Money From Robinhood?

Have you ever tried withdrawing money from your Robinhood account only to find mysterious error messages, account restrictions, or other problems blocking your access to your own hard-earned funds?

You‘re not alone. Thousands of Robinhood users have experienced issues trying to withdraw their money from the popular trading app.

In this comprehensive guide, I‘ll explain the most common reasons why you can‘t withdraw funds from Robinhood along with step-by-step solutions to resolve each problem quickly.

By the end, you‘ll understand exactly why Robinhood withdrawal requests get rejected and how to successfully transfer your cash from Robinhood back to your bank account.

Why Does Robinhood Reject Withdrawals?

Before we dive into the specific reasons, it helps to understand what‘s happening behind the scenes when you request a withdrawal from Robinhood.

Robinhood is required by regulators like the SEC to comply with strict rules around protecting customer funds and preventing fraud. So whenever you attempt to withdraw money, Robinhood‘s systems perform several validation checks:

Verify account ownership – Confirm the bank account and user identity match Robinhood‘s records
Check trading activity – Review for suspicious trading patterns that could indicate fraud
Validate funds availability – Confirm settled cash is available and withdrawal limits have not been exceeded
Screen withdraw amount – Flag unusually large transfers for additional scrutiny

If anything looks off, your withdrawal gets flagged for further review. This triggers the dreaded "your withdrawal was rejected" message.

But with the right steps, you can overcome most withdrawal issues and successfully unlock your funds.

Now let‘s explore the 6 most common reasons Robinhood rejects withdrawals and how to fix them.

1. Waiting for Trades to Settle

One of the top reasons Robinhood withdrawals get rejected is attempting to transfer funds too soon after selling stocks.

You have to wait for trades to officially settle before those funds can be withdrawn.

All brokerages, not just Robinhood, require stock trades to settle before disbursing the cash.

Here‘s how trade settlement works:

Trade date (Day 0): You sell your shares of a stock. This is the day your trade executes.
Settlement date (Day 2): The trade officially settles two business days after the trade date.
Withdrawable (Day 3): Proceeds are now available to withdraw on the business day following settlement.

For example, if you sold stock on Monday, that trade would settle on Wednesday. Thursday would be the first day you could initiate a withdrawal of those funds.

Simple enough right? Just wait the two business days for settlement then withdraw away.

However, many Robinhood users get tripped up because they try withdrawing on the second day, not realizing you have to wait until the third day after the trade.

Patience is key. So double check your trading history and make sure the appropriate settlement period has fully passed before attempting to withdraw those funds.

2. Exceeding Withdrawal Limits

Robinhood places daily and weekly limits on how much you can withdraw:

$50,000 per business day
No limit on weekly withdrawals

If you attempt to withdraw over $50,000 on a single business day, you‘ll get a transaction cancelled notification.

The solution? Split up the withdrawal into multiple smaller amounts under the limit across several business days.

For example, instead of requesting a $75,000 withdrawal, make three separate $25,000 requests on consecutive days.

One workaround long-time Robinhood users employ is leaving buffer room below the $50k ceiling, like sticking to $45k or $40k limits per day just to be safe.

Additionally, remember there‘s no weekly limit. So even if you bump against the daily ceiling, you can withdraw any remaining amount over the next few days.

3. Pending Withdrawals

Here‘s another common pitfall that trips up Robinhood users: attempting to make a second withdrawal while another is still pending.

Every withdrawal request can take up to 5 business days to fully process while Robinhood verifies the transaction isn‘t fraudulent.

If you submit an additional withdrawal before the first completes, it will get rejected immediately.

The solution is simple – just wait for the first withdrawal to complete before queuing up another.

I know, waiting around for pending transactions can be annoying. But avoid the temptation to submit a duplicate request. That will only slow the process down further.

Be patient, and your pending withdrawal should clear within a few business days maximum.

4. Unverified Bank Accounts

For security purposes, Robinhood requires you to verify each bank account before withdrawing to it for the first time.

If you request a withdrawal to a bank account that hasn‘t been verified yet, you‘ll get a transaction cancelled message.

To verify a new bank account:

In the Robinhood app, navigate to the Transfers page under the Account section.
Tap "+ Add Bank"
Enter your bank account details.
Confirm small test deposits that Robinhood sends to the account. This verifies your ownership.

The verification process usually completes within 1-2 business days.

Once your new bank account is verified, you‘ll be able to withdraw to it immediately.

5. Account Restrictions

If Robinhood flags your account for suspicious or fraudulent activity, they may restrict your ability to withdraw funds temporarily.

Getting an account restriction lifted can be frustrating. Here are some tips:

Contact support – Email Robinhood support and calmly explain the situation. Provide any information they request.
Stay patient – Wait at least 3 business days for Robinhood to complete their fraud review. Avoid repeatedly messaging them.
Use official channels – Only communicate through Robinhood‘s official support email and app. Ignore any other outreach.
Learn the lesson – Figure out what activity triggered the restriction so you can avoid it in the future.

As long as you follow the rules and keep your account in good standing, Robinhood will life restrictions after completing their risk review.

6. Verification Checks

Robinhood‘s system runs occasional re-verification checks on existing users.

If your account gets flagged for re-verification, withdrawals will be blocked until you provide the requested documentation to confirm your identity and account details.

The fastest way to re-gain withdrawal access is timely submission of whatever documents Robinhood asks for, whether that‘s:

Uploading a photo ID
Confirming your social security number
Snapping a selfie for facial recognition

Depending on their current backlog, Robinhood can take anywhere from 1 – 5 business days to review documents and lift verification holds.

The best practice is staying on top of notifications from Robinhood and promptly providing the information needed to pass verification checks. This minimizes withdrawal delays.

Step-by-Step Guide to Withdrawing Funds from Robinhood

Now that you know how to avoid rejected withdrawals, let‘s walk through the process step-by-step:

Step 1) Tap the magnifying glass icon in the Robinhood app.

Step 2) Under the Transfers section, select Withdraw Funds.

Step 3) Choose the bank account you want to withdraw to.

Step 4) Enter the withdrawal amount. $50,000 daily limit, remember!

Step 5) Review and confirm withdrawal details.

Step 6) Robinhood initiates the transfer and the funds arrive in your bank account within 2-3 business days.

And that‘s it! With the common pitfalls avoided, withdrawing your funds from Robinhood back to your bank can be smooth and headache-free.

Tips for Hassle-Free Robinhood Withdrawals

Follow these tips and best practices to avoid rejected withdrawals and successfully transfer funds from Robinhood:

Carefully track trade settlement periods before withdrawing stock sale proceeds.
Split withdrawals exceeding the $50,000 daily limit into multiple smaller amounts.
Never submit a second withdrawal while one is still pending.
Proactively verify all new bank accounts via small test deposits.
Maintain your account in good standing to prevent restrictions on withdrawals.
Quickly respond to Robinhood requests for updated personal information.
Check bank holidays and weekends that could delay transfers.
Review account and routing numbers for accuracy before withdrawing.
Enable two-factor authentication for account protection.

Conclusion

Withdrawing funds from Robinhood can sometimes be frustrating when your transfers get rejected or stuck on pending. But in most cases, there are clear solutions.

Now that you understand the reasons why Robinhood blocks withdrawals and how to avoid common missteps, you can transfer your funds successfully.

Just stay patient during the process, and don‘t hesitate to contact Robinhood customer support if you encounter any other issues withdrawing funds from your account.