Why Does Robinhood Need My Bank Login? Is That Safe?
When you sign in to become a Robinhood account holder, the platform will ask for your bank login details.
Why is that? Why is such delicate and important information needed?
Well, there’s a reason why your bank credentials are required by the platform, so do not despair.
If you have recently installed Robinhood app, you might be asking yourself if this brokerage firm it’s worth trusting or not.
Yes, Robinhood asks user for their banking information, so if you want to get into a commission-free investing world, then this is a must.
Continue reading so you can learn more about:
- Why does Robinhood need my bank login?;
- Things you need to know before you link your bank account to Robinhood;
- Is it secure to provide your bank login info when you create a new account on Robinhood?
Why Does Robinhood Need My Bank Login?
Robinhood needs to verify the information of all Robinhood accounts due to regulatory purposes - that’s the short answer.
Robinhood, and most personal finance apps in the US, are ruled by the law of the Financial Industry Regulatory Authority ( FINRA).
Stock trading, Robinhood Crypto and Robinhood Securities are controlled by the Securities and Exchange Commission as well.
That being said, whether you want to open an account for trading or crypto purposes, you must complete the Robinhood Review process first.
So, if you want to add money, make small transfers, and move funds into your linked accounts, then this is unavoidable.
Pro Tip: Is your Robinhood Application Under Review still? Whether you want to open a Robinhood Gold account or an Instant account, the Robinhood app asks for your personal information.
Investments involve risk, so not just Robinhood will ask you for this.
Why Do I Need to Give Bank Account Details?
When you create your brokerage account and complete the verification process on the mobile or web app, Robinhood will give you the option to add your bank ID.
For this, you have two alternatives:
- A major bank or credit union can be automatically found when you click “account” and put your bank name into the search bar. This will allow you to link savings accounts or checking account automatically;
- If you don’t use major banks or credit unions, you must add your bank account manually. This option is found at the upper right corner of the screen after you click “banking.”
The thing is, that in order to add a bank, you must put your online banking username and password into the platform.
So, what advantages will you receive after having linked accounts from a bank or credit union?
Read Also: You can also Add Money to Robinhood Without a Bank Account.
Although it’s imperative for most users to link their bank account when they create a new account on Robinhood, the truth is that there are some useful alternatives as well.
1. Withdrawals from Robinhood Account to Bank
If you want to withdraw money from Robinhood to your bank account via a direct deposit, then verifying your routing and account number is the best way to do so.
We have a How to Withdraw Money from Robinhood guide that can help you with all the info you need regarding this matter.
2. Identity Verification Reasons
Robinhood is a centralized platform ruled by financial entities in the United States.
Providing details, such as your social security number ( Robinhood SSN), will help to quickly verify ownership of your documents, such as your bank account details.
3. Deposit Money and Easy Funds Management
Transferring from your bank account to Robinhood is as easy as it gets!
If you provide your bank details, such as routing numbers, to the platform, then managing funds will be easy peasy - don’t sleep on it!
Is It Safe to Provide My Bank Login Information to Robinhood?
In Robinhood, all of your information is always protected, including your bank details.
Robinhood has managed to become one of the safest and trustable brokers of them all, so yes, it is safe to provide your information to Robinhood.
You can always contact the support team if you need more information regarding their security measures.
Overall, your data will be protected from hackers and suspicious activity, so you don’t have anything to worry about.
That’s it for today!
Robinhood is clearly a good platform, so don’t hesitate to check it out.
For more articles and financial news, check GrowFollowing whenever you can.
Robinhood Bank Login FAQ
Can I Make an ACH Transfer to Robinhood?
Yes, the platforms authorize ACH transfers in order to fund your profile. Thus, you can do them without problems.
Can I Reactivate My Robinhood Financial Account After Being Limited?
Yes. If the platform is denying access to all features on your account, you need to fill in the form provided by it in order to reactivate your profile on the Robinhood app.
Learn more about this subject by reading our How to Reactivate Robinhood Account blog post.
Steve specializes in cryptocurrency and finance. As a born researcher, he won’t leave any stone unturned when it comes to topics he covers.
Oliver is GrowFollowing founder and covers topics ranging from fintech to Internet.