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How to Add Money to Robinhood Without a Bank Account

Robinhood is a trading app that offers trading services to investors to buy and sell stocks, options, exchange-traded funds, and a cryptocurrency without paying commissions or fees. In this composition, I will teach you how to add money to Robinhood without a bank account so that you can trade. Lack of a bank account should not be a limitation to trading in stocks.

There are many stocks in the market that you can use to buy stocks. However, Robinhood stood out as the only free-trading app you can use to buy stocks for free. Nowadays, there are various stock trading apps that you can get from various sources. Buying and selling stocks is becoming one of the best businesses you can undertake in the world.

However, before creating an account with Robinhood or any other, you have to understand the risks behind the trading. Stocks increase in prices and sometimes fall sharply. Therefore, you need to be prepared for the uncertainties. For example, Bitcoin was selling at a meager price when it started, whereby it was selling at $0.0008 to $0.08 per coin in July 2010, but now a Bitcoin is worth  $32,233.30.

How to get started with Robinhood

Before you get started, there are various requirements that you need. To open an account with Robinhood,

  • You must be above or 18 years old
  • Have a Social Security Number
  • You must have a U.S. residential address (Active U.S. military personnel stationed abroad are exempted)
  • Be a U.S. citizen, have a valid U.S. visa, or a U.S. permanent resident.

However, citizens living in places under US sanctions such as Cuba, North Korea, Iran, Syria, and the Crimea region of Ukraine are not eligible to apply for the account.

Moreover, if you travel to these locations while already enrolled, you will not log into your account for any kind of transaction. You also require devices with either of the following technologies.

  • iOS
  • Android
  • Web

Once you have the requirements, you can then proceed to open your Robinhood brokerage account. You should either download the Robinhood app or visit Robinhood.com to start applying for your account. Once you submit your application, you should wait for a confirmation message showing that your account is approved or you need to provide more information. You may also need to add more documents as per the instructions. Robinhood will finish reviewing your application within seven days of application.

Next, you can then start trading to earn substantial amounts of money. You will be able to withdraw your earnings to a bank account when the need arises. You will have to master how to transfer money from Robinhood to a bank account so that you can utilize your earnings for various transactions.

How to add money to Robinhood without a bank account

how to add money to robinhood without bank account

You do not need an account with any bank to add money to your Robinhood account. The following are ways you can add money to your account even when you do not have a bank account.

1) Use PayPal

If you have a PayPal Cash Card, you can easily top up your Robinhood account to use for your trading activities. Robinhood accepts the debit card, and you will be in an excellent position to load your account using it.

2) Use Netspend prepaid debit card

Netspend debit cards work with Robinhood. Therefore, it will be a nice option to avail money in your Robinhood account. In fact, Robinhood accepts all kinds of debit and prepaid cards.

3) Skrill

You can use your Skrill account to add money to your Robinhood account. Robinhood works with most digital wallets such as PayPal, Neteller, and others. When you select to top up your Robinhood account with a digital wallet, you will get a new window that requires you to log into the respective digital wallet.

How do you deposit funds to Robinhood using a bank account?

The most popular way of depositing money in your Robinhood account is using a bank account. To initiate a deposit, the steps below are necessary.

Depositing via mobile app

If you have an iOS smartphone or android smartphone, you can load your account by following the procedure below.

  • Hit the Account tab (the person icon) at the bottom right corner for iPhone and hit the Menu in the top corner if using an android phone. 
  • Hit on Transfers
  • Select transfer to Robinhood
  • Select the account to transfer from
  • Enter and review the deposit
  • Submit

The procedure is a bit different when depositing over the web. The procedure below will help you in the deposit process.

  • Hit on Account in the right corner of the screen’s top
  • Select Banking
  • On the panel labeled Transfers, choose the account to transfer from
  • Enter the amount to deposit
  • Click Review and select Submit

You need to know that you can only make five deposits per business day. Furthermore, you cannot deposit more than $50,000 per business day. Note that Robinhood does not accept check deposits. 

How long do bank transfers to Robinhood take?

Bank transfers to Robinhood can take up to 5 business days to complete. However, the duration may become shorter depending on your past relationship with Robinhood. You should ensure that you have enough balance in your bank account during the transfers.

If you withdraw funds from your bank account and remain with a balance less than the transaction amount, then your transaction will be canceled. You will get a transfer reversal due to insufficient funds, creating a bad relationship with Robinhood.

Interestingly, you can cancel a transaction before any processing is done. When the transaction has undergone processing, you should forget about it since you will not reverse it.

Does Robinhood accept direct deposits?

Robinhood accepts direct deposits. You can therefore allow your paycheck or government deposits such as tax refunds into your account. You must first set up your direct deposit.

You can also set up automatic deposits into your brokerage account and you do not have to carry out the process manually when in need. You can set up automatic deposits on your mobile app as follows.

  • Tap the Account icon on your home screen
  • Hit on Transfers
  • Select Automatic Deposits
  • Select your schedule
    • Weekly: Deposits happen every Monday
    • Twice Monthly: Deposits happen  on the 1st and 15th of each month
    • Monthly: Deposits take place on the 1st of each month
    • Quarterly: Deposits take place on the 1st of January, April, July, and October

You should enter the amount of money you want to deposit every time. When setting up direct deposits over the web, you can follow the procedure below.

  • Click Account on your screen.
  • Hit on Banking
  • Hit the arrow next to Transfers on the right side of the screen
  • Select Automatic Deposits
  • Select the account to transfer from
  • Enter the amount to deposit
  • Select a schedule
    • Weekly: Deposits happen every Monday
    • Twice Monthly: Deposits happen  on the 1st and 15th of each month
    • Monthly: Deposits take place on the 1st of each month
    • Quarterly: Deposits take place on the 1st of January, April, July, and October
  • Enter the amount of money you want to deposit every time.

Is Robinhood safe?

Robinhood is entirely safe. Your money cannot be lost in any way since it has insurance of up to $500,000. Furthermore, no one can use your account details to steal from you unless they have the login details. But can someone withdraw money with my account number? Not really! No one can get money out of my bank or brokerage account using my account number alone. So I do not need to worry if someone knows it.

There are also other safety measures to safeguard your online activities, such as account information encryption so that no one can come between your communication with servers to read your data. However, you need to use secure internet connections since some public WiFi is prone to hacking.

Another mechanism that Robinhood uses to secure your account is creating a password to log in to your account online. Therefore, no one else can access your account except you. If you notice that someone has mastered your password, you can change it appropriately.

How do I get money out of Robinhood?

Once you withdraw money from your trading account into your buying power as a withdrawable balance, you can then transfer the money into your bank account. You, however, need to give the funds a settlement period of at least two days, excluding the trade date.

You can withdraw money into a bank account that you added when opening your brokerage account or withdraw it to a different bank account. The Robinhood customer care reps will help you in the withdrawal process. However, you will;

  • Give explanations as to why you cannot withdraw to the bank you added when opening your account.
  • Give a photo of your back and front of your ID.
  • Give statements of the two banks for comparison to verify that you own both accounts.
  • Give the bank account details and the specific amount of money to transfer.

Once the funds reach your bank account, you can do various transactions such as buying goods and services and withdrawing over the counter. You can also send money with a checking account number instantly to another bank account within the same bank.

Moreover, you can also withdraw money from your account using the Robinhood Debit card at ATMs. The card operates like the other debit cards since it has a PIN, and you can pay with the card at retail shops, restaurants, and groceries, among others.

Bottom line

Robinhood allows you to open a brokerage account so that you can buy and sell stocks. The trading company works with Android, iOS, and web platforms. Also, Robinhood has a debit card that you can use to pay for goods and services and withdraw money from an ATM. Money at Robinhood is safe due to insurance and other security measures for the app.

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