Investing for a common man is sometimes out of reach Not because he does not know about investing, but because he does not get the opportunity of flexible investing. But ever since Robinhood has been introduced in the market, in a way, all the barriers seem to be coming to an end. Robinhood made investment easy for the common man with their Robinhood instant deposit option.
And the one thing that attracts me the most about Robinhood is their commission-free trading of stocks, ETFs, and Cryptocurrencies. This free trade opportunity has been embraced by millions of Americans.
You can buy partial shares of companies listed on the NYSE and Nasdaq. And if you are new to the stock market and want to join Robinhood, the first question that arises in your mind will be about Robinhood instant deposit. In this blog, we will talk about everything from the instant deposit on Robinhood to their workings.
So, let’s get started.
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When you start trading with Robinhood, they offer three types of Accounts viz. Robinhood cash, robinhood Gold, and Robinhood instant. All these accounts serve the different needs of investors with their advantages and limitations like instant trade settlement and instant deposit limits.
Introduced in 2016, the Robinhood Instant deposit account is free, you do not have to pay a monthly fee. Even you don’t have to maintain the minimum account balance. Whenever you signup for a Robinhood account, you will get the Robinhood instant deposit account feature by default.
Robinhood’s instant deposit feature allows the investors to deposit funds into their online wallets directly from their banks.
With Robinhood instant account you can transfer up to $50000 per day from bank to account. When you sign up on Robinhood, your account will be credited with $1000 immediately. For more account deposits you have to wait for five working days.
The amount limit depends upon the amount in the user’s account. Investors who have a portfolio value of more than $50000 can have access to a $50000 instant deposit. In the same way, investors with a portfolio value of $25000 or more, can enjoy the instant deposit of $25000. The same applied to the investors having a portfolio of $10000 or more.
Even if Robinhood investors upgrade to Robinhood Gold account, their instant deposit limit of standard account that is $1000 will be increased. Robinhood Gold allows its investors to deposit $5000- $10000 in their accounts instantly.
To avail of the facility of Robinhood instant deposit account, one must have their account in Robinhood. With Robinhood instant deposit feature you can transfer money directly from your bank account to your wallet.
For a money transfer, you need to sign up for a Robinhood account and check the status of your instant deposit account. If your status is “Ok” you can then tap on the transfer section. Choose transfer to Robinhood and enter the amount you want to transfer and then submit.
If your account is into Robinhood gold, you will immediately get the deposit done, otherwise, you have to wait for five days.
And the most stunning thing that attracts the customers the most is the “Investment-Profit” feature. This feature allows investors to invest their money and make a profit while waiting for the transfer process to complete (that five-day transfer process).
During the transfer process, you will not be allowed to transfer your funds back to your bank account.
Yes, you can Increase your instant deposit on Robinhood. But for that, you must upgrade your account to Robinhood Gold account. All the users have a limit of $1000, whereas Robinhood Gold users have a limit of $5000 no matter what their portfolio value is.
But if you want to upgrade your account to Robinhood Gold you must maintain your portfolio value of at least $2000. The up-gradation process is very easy, you just need to log in to your existing Robinhood account. Click on the Account option and tap on the three bars in the upper right corner. Then open settings and select Robinhood Gold.
Always remember, Robinhood Gold is not free, for Robinhood Gold you have to pay a $5 monthly subscription fee, you can avail of the 30-day free trial, but after that, you have to pay a fee. This amount will be automatically deducted from your Robinhood account.
If you are a Robinhood Gold user, and you want to downgrade from Robinhood Gold to Standard, you can easily do this. But keep in mind if you exceed the limit of $1000 in your current deposit, or you have any pending orders then in that case Robinhood has all the rights reserved to decline your downgrade request. You need to first clear your pending deposits and stop using more significant instant deposits.
But in the future, if you want to upgrade from Robinhood Standard to Gold you must pay $5 and also incur monthly charges of $5.
One more option is available to increase the limit. You need to deposit more amount to meet the upcoming limit. If you have a good portfolio value, you can get an instant deposit less than or equal to your portfolio status.
For example, If your portfolio value is $4000 and you want to transfer $7000, then you will receive an instant deposit of equal amount as $4000.
Can My Instant Deposit Account ever get Suspended?
If you are involved in one or more reversal activities your Robinhood Instant Deposit will lead you to discontinuation of the services. Instant deposits are based on the activities and your ways of deposits clearance after clearing your deposits.
Always keep in mind that if your Robinhood Instant Deposit is limited you must follow the reset procedure of instant deposit.
You need not pay any fee for Robinhood Instant Deposit. No interest and no minimum amount of maintenance are there. Users need to share the unique referral code in the app. As soon as people click on that share link you will get access to the instant deposit.
You just need to pay a margin fee. If your margin exceeds the limit of $1000 then you have to pay interest at 2.5% p.a. And this is calculated on daily basis. And if you have a Robinhood Gold account this margin interest will be automatically deducted from your account on monthly basis.
The Robinhood Instant deposit policy is very transparent and fair. They never impose unwanted or unreasonable restrictions on business accounts. Investors can increase their limits as per their portfolio. Robinhood not only maintaining the investor’s limits but also protects those who don’t want to take risks in investment.