Fix: Robinhood Account Withdrawal Disabled

Robinhood, a brokerage, allows you to deposit or withdraw money from your account or transfer it to another bank account within a few steps only. But for withdrawal or deposit, one must have to follow all the rules. 

You must know that you can only make 5 withdrawals every business day in the account and the amount that you can withdraw must be up to 50,000$.

However, there are times when the user encounters issues while withdrawing money from the account. 

It may be because of the restrictions on the account, the deposit may be pending or you may be trying to withdraw money before the settlement date only. No matter whatever is the reason, the issue can be frustrating for anyone. 

So, we have come up with this post to explain to you why you may not be able to withdraw funds from Robinhood and how you can fix the same. 

Why Is My Account Withdrawal Disabled In Robinhood?

Account withdrawal disabled issues may occur in Robinhood when your account is restricted. When your account is restricted, you will not be able to withdraw any funds from the account. 

For this, you will have to contact the Robinhood support team and they will provide you with the solution.

Restrictions can be implied on your account because of different reasons like if you have chosen the control person option. In case you mention yourself as the control person for any company, you will be restricting yourself from trading specified stock. 

So, if someday you choose not to be the control person anymore or you have chosen this option mistakenly, you will have to contact the support team.

There may be other reasons also for account restrictions such as incorrect information entered, fraud or irrelevant inquiry, account levies, or transfer reversals. 

Simply put, the major reason behind the occurrence of Account withdrawal disable issues is the account restrictions imposed by Robinhood on your account.

Also Read: Robinhood Margin Maintenance

Why Can’t I Withdraw My Money Off In Robinhood?

Now that Robinhood deals with finances and money, there are different security measures that the application follows for any transaction. Sometimes these restrictions may lead to issues in withdrawing money from Robinhood. 

Many reasons can contribute to the issue when you may not be able to withdraw money. The most common reason for which you may face the issue is the funds that you are trying to withdraw are still in the settlement process.

Also, if you have made withdrawal more than the limit, the issue is common. Another reason can be that your account is restricted. Mostly, this issue occurs because of the settlement period. 

For this, you must know that when you make a transaction, it takes trade day+ next 2 working days to settle the amount. 

After the third day, you will be able to withdraw the money from the account.

Other than this, you may still be restricted to withdraw money if you are trying to withdraw more than the limit. You can only withdraw up to 50,000$ from your Robinhood account on the business day. 

Account restrictions may not be the most common reasons but they are still one of the reasons. Account restrictions may occur to the people who are suspected of unusual trading behavior and who have changed their linked account recently.

How To Fix “Account Withdrawal Disabled” In Robinhood?

Now, if Account withdrawal is disabled on Robinhood, there is no such way to get rid of the same. The fixation method will completely depend on the reason for which withdrawal has been disabled. 

So, If you have attempted to withdraw money before the settlement day, you can do nothing but wait till the settlement period is over. When it is over, attempt to withdraw money.

Next, if you are trying to withdraw more than the specified limit, nothing can be done. You will have to wait for the next working day to complete the remaining amount’s transactions.

Moreover, if your account is restricted or disabled by Robinhood only, you will have to contact the Robinhood support team so that they can help you with the issue.

How To Unlock My Robinhood Withdrawal?

Robinhood, like many other brokerages, uses different cash management systems and secures your cash and assets. If your withdrawal is locked, you will not be able to make any withdrawal from your account. 

So, if you or anyone else attempts to make a withdrawal from the account, it will fail. You will then get a notification, email, or message indicating the failure of the transaction. 

Now, if you are only using your account, you can choose to unlock or lock withdrawal by visiting the Cash tab. Under the cash tab, you will get the option for lock withdrawals. Tap on the same. 

One thing that you will have to keep in mind is that if you lock or unlock withdrawals,  it will not apply to your debit card.

Also Read: Robinhood Options Explained

Why Is My Robinhood Account Deposit Disabled?

So, are you not able to deposit in your Robinhood account? Well, there is usually one reason for Robinhood account deposits being disabled: limit exceeded. 

So, if you choose to deposit funds more than the limit, you will not be able to use the amount. You will be able to use the funds only for funds up to your limit. 

So, you will have to wait for the next five business days so that your deposited money can get cleared and settled for your use.

If you need more money than the limit, you can also switch to Robinhood gold so that you can access the instant deposit limit. The instant deposit limit will depend upon the account balance in your Robinhood account. 

Winding Up

Robinhood account withdrawal issues can occur because of only three reasons: Settlement period is not over, limit is exceeded, or account restrictions are enabled on the system. 

Usually, the best method to fix the issue is to talk to the Robinhood support team or wait for the settlement period to offer when the settlement issue is the reason.

We hope we have answered all your queries and you have found this article informational. Keep visiting our website for more such information.