How to Withdraw Money from SoFi
If you have a SoFi Invest account and want to withdraw money, there is one main method to do so. SoFi uses ACH to handle money transfers, and the broker provides a convenient tool to make the process simple.
Keep reading to learn more about SoFi’s withdrawal process and how to withdraw money from your brokerage account.
Withdrawal Money from Your SoFi Account
To withdraw money from your Active Invest or Auto Invest account, SoFi offers ACH transfers to make the process easy.
SoFi Active Invest accounts have two balance categories, while the Auto Invest account has one.
SoFi Active Invest Withdrawals
In an Active Invest account, your balance is divided into 'withdrawable cash' and 'buying power.' Withdrawable cash includes all funds that are not invested or tied up in a settlement period. The 'buying power' balance can be larger and includes funds that have not yet cleared.
SoFi Auto Invest Withdrawals
For Auto Invest accounts, balances are always fully invested. There is no 'withdrawable cash' category. To withdraw money, you must submit a request, and SoFi will sell the required securities to meet your withdrawal request. After selling your Auto Invest assets, SoFi sends the withdrawn amount to your connected account.
Setting up a Withdrawal Request at SoFi
Setting up a withdrawal request from a SoFi Active Invest account is straightforward if you’ve already connected a bank account to your SoFi account.
First, go to the withdrawal page on the website, or find the same tool on the mobile app by selecting the 'Trade' button. You'll see a 'Withdrawal' option that guides you through the steps.
After choosing a receiving bank account and transfer amount, you can start the withdrawal process by reviewing your request details and confirming everything is correct.
Setting up a withdrawal request from an Auto Invest account should be done using the mobile app, where you can find the withdrawal tool within the 'Trade' options.
Preparing Your SoFi Account for Withdrawal
As mentioned, there’s a difference between the balance you can withdraw and the balance you can trade with. To withdraw funds from SoFi, they must be free of any holds or restrictions.
There are two main reasons you might not be able to withdraw cash: either your deposits haven’t cleared, or your trades haven’t settled.
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Deposit Hold Times
Both SoFi Auto Invest and Active Invest have hold times for new deposits. Auto Invest accounts have a five-day hold before these deposits can be withdrawn. Active Invest accounts hold new deposits for about six days, as required by regulations to prevent money laundering.
Withdrawal requests can be processed after the deposit hold times are over.
Deposit Settlement
In addition to deposit holds, it’s important to consider the settlement times for new deposits. Only fully settled funds can be withdrawn. Deposits made via wire transfer settle as soon as they reach your account, but ACH deposits take at least three days to settle.
Trade Settlement
Another factor to consider is trade settlement. When you sell a security at SoFi, there is a three-day settlement period (T+3) before the funds from that sale are ready for withdrawal.
Transfer Timeline
ACH transfers can take up to five days, though they often process faster, with many withdrawals completing by the third day.
However, if you withdraw funds from an Auto Invest account, you need to add three or four days to the processing time. This additional time is due to the next-day liquidation process and the settlement period for those sales.
SoFi Withdrawal Fee and Limits
All SoFi withdrawals are processed through the ACH system, so there are no fees for withdrawing your money. However, if an ACH transfer is returned due to a problem with the receiving bank, a $15 fee will apply.
For ACH transfer limits, SoFi allows withdrawals of up to $100,000 per day—one of the highest limits in the industry.
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Updated on 8/21/2024.
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