Downgrading a cash account on Robinhood is easy and can be done at any time, but it’s important to know what you’re doing before you downgrade your account.
Once you have a grasp of the Robinhood platform, you will be able to do this with relative ease.
We are going to be taking a look at how exactly you can downgrade to a cash account on Robinhood, as well as what it means to downgrade to a cash account on what services Robinhood offers.
Let’s take a look!
What Is Robinhood?
Robinhood is an online trading app that allows its users to buy stocks, options, ETFs, cryptocurrencies, and more from over 5,000 different companies for free.
The best part about Robinhood is that all trades are commission-free, which makes investing in stocks much cheaper than traditional brokerage accounts.
With Robinhood, there is no minimum deposit requirement, so you don’t need to worry about having $25 or even $1,000 to invest.
You can also get started by purchasing fractional shares of stock, such as buying just.01 of a share.
The site has been growing rapidly since its launch in 2015, and now boasts over five million registered users who trade over one billion dollars worth of securities each month.
Robinhood uses advanced technology to make financial management easier, allowing its customers to track portfolios, set alerts, and create custom watch lists.
They offer paperless statements, mobile apps for both iOS and Android devices, and a web portal accessible through a browser.
The company was founded by Vlad Tenev and Baiju Bhatt in 2014 and is headquartered in San Francisco, California.
What Is A Robinhood Cash Account?
A Robinhood cash account is similar to a checking account, except it doesn’t allow withdrawals.
It is used exclusively for making deposits into your Robinhood account, and cannot be used to withdraw funds.
If you want to use your Robinhood account to pay bills, then you should open up a regular savings account instead.
How Do You Set Up A Robinhood Cash Account?
Setting up a Robinhood Cash Account is simple, and requires only a few steps. First, you must go to the “Accounts” tab within the app.
Then click on the “Add New Account” button. On the next screen, simply select “Cash Account” under the “Type” section, and enter your desired username.
Next, you will be asked to choose whether you would like to link your bank account, or if you would rather manually type in your routing number and account information.
Finally, you will be prompted to verify your phone number and email address.
Once your new Robinhood Cash Account is ready, you can begin depositing money into it.
Simply log into your Robinhood account using your login credentials, and then click on the “Deposit Money” tab.
From here, you will see a list of all of your available accounts, including your Robinhood Cash Account.
Clicking on the name of your new account will bring up a page where you can add funds to it.
Once you have deposited money into your Robinhood Cash Account, you can start using it to purchase things on the Robinhood website.
However, you won’t be able to withdraw any money out of your account until you first close it down.
This means that you won’t actually be able to spend any of your money right away.
Instead, you will need to wait until you receive a notification that your account has been closed before you can access your funds.
Is There A Fee For Using A Robinhood Cash Account?
Using a Robinhood Cash Account does come with some fees, but they aren’t too bad.
When you first sign up for a Robinhood account, there is an initial $5 fee. After this, there are no additional fees for maintaining your account.
However, when you deposit money into your Robinhood account via a Robinhood Cash Account, there is a $10 fee per transaction.
Additionally, if you close your Robinhood Cash Account without withdrawing any money from it, you will also incur a $15 fee.
Can I Use My Robinhood Cash Account With Other Apps?
Yes! Your Robinhood Cash Account works just as well with other apps as it does with the Robinhood app itself.
In fact, you can even transfer money between your Robinhood Cash Account and your Robinhood Savings Account.
Just log into your Robinhood app, click on the “Transfer Funds” tab, and select which account you would like to send money to.
What Does It Mean To Downgrade A Cash Account On Robinhood?
Downgrading a cash account on Robinhood means that you’re moving your money out of the Robinhood App into a regular brokerage account.
This means that you’ll lose access to some of the features of Robinhood, including:
- Paperless Statements
- Mobile Apps
- Web Portal
- Alerts
If you want to move your money back into Robinhood after downgrading, you can simply go to your settings page and change your account type from “Cash” to “Account”.
Why Should I Downgrade My Robinhood Account?
There are several reasons why you should consider downgrading your account.
First off, if you’re looking to start investing in stocks, then you may find yourself wanting to open up a brokerage account instead.
If that’s the case, then you can use Robinhood to transfer funds between your Robinhood account and other brokerage accounts.
Another reason to consider downgrading your account is if you’re not interested in using the Robinhood mobile apps.
If you never use them, then you won’t miss out on anything when you downgrade your account.
Finally, you might want to downgrade because you’ve decided to stop using Robinhood altogether.
If that’s the situation, then you can still keep your money in your Robinhood account until you decide to withdraw it.
How Do I Downgrade A Cash Account On Robinhood?
To begin the process of downgrading your account, click on the three dots icon located in the top right corner of your home screen.
You’ll see a list of all of your accounts on the left side of the screen.
Click on the name of the account you’d like to downgrade, and select the option labeled “Change Account Type”.
You’ll be taken to a new screen where you have two options: “Withdraw Funds” and “Transfer Funds”. Select the second option, and follow the instructions provided.
Note: You will need to provide your email address and password to complete this step.
How Long Will It Take For Robinhood To Process My Downgrade Request?
It depends on how many requests there are currently being processed.
Typically, it takes about 24 hours. However, if you request multiple downgrades at once, then it could take longer.
Final Thoughts
The good news is that you don’t have to do anything special to get started downgrading your account.
Simply log into your Robinhood account, click on the “Transfer Funds” tab, and choose which account you’d like to send your money to.
The bad news is that you’ll no longer be able to access certain features of the Robinhood app.
That said, you can always come back later and re-open those features.
