If you want to withdraw money from SoFi and send it back to your bank account, you can do it directly through the SoFi app. The process only takes a few steps, but there are a couple of important things to understand before you begin, especially if your money is invested.
How to Withdraw Money from SoFi
To withdraw money from SoFi, start by opening the SoFi app and going to your investment account.
From the main screen, follow these steps:
- Tap Invest at the bottom of the screen.
- You will be taken to your investment dashboard.
- Look below your account value and chart for three action buttons: Add cash, Explore and trade, and More.
- Tap More.
- A menu will appear with three options: Transfer assets, Withdraw, and Refer a friend.
- Tap Withdraw.
You will then arrive at the Transfer money screen. This screen is similar to the one used when adding money to your investment account, except the direction of the transfer is reversed.
Make Sure You Have Available Cash
Before you withdraw money from SoFi, check how much cash is actually available for withdrawal.
You can only withdraw cash that is available in your investment account. If your money is currently invested in stocks, ETFs, or other investments, you cannot simply withdraw that invested amount as cash.
You will need to sell the investments first. Once the money becomes available as cash, you can withdraw it to an eligible bank account.
For example, if your SoFi self-directed investment account shows $5.38 available for withdrawal, you could enter $5 as the withdrawal amount.
Choose Where to Send the Money
After entering the amount, you will see two boxes on the transfer screen. The first shows where the money is coming from, while the second shows where the money is going.
Your self-directed investment account should be selected as the account the money is coming from.
If you only have one linked account, SoFi may automatically select it as the destination. If you have several linked accounts, tap the destination account box to see your available options.
Depending on which accounts you have connected, you may see your SoFi checking account, SoFi savings account, or external bank accounts.
Select the bank account where you want to receive the money. A check mark will appear next to the selected account to confirm your destination.
Review Your SoFi Withdrawal
Once you have selected your destination, tap Review.
The final review screen will show the details of your withdrawal, including:
- The withdrawal amount
- The account the money is coming from
- The destination account
- The expected availability timeframe
Check these details carefully before submitting the transfer.
SoFi Withdrawal Timeframe Explained
The time it takes to withdraw money from SoFi depends on where you are sending it.
If you transfer the money to an external bank account, the app may show that the funds will be available in one to two business days.
If you send the money to your SoFi checking or savings account, the funds may be available instantly, with a lightning bolt displayed next to the timeframe.
The exact timeframe shown in the app can vary, so always check the review screen before completing your withdrawal.
Complete the Withdrawal
When everything looks correct, scroll to the bottom of the screen and use the Slide to withdraw option.
After you complete the action, SoFi will show a confirmation screen with a check mark and a message indicating that your withdrawal has been initiated.
The confirmation will also summarize the withdrawal and show the expected timeframe for receiving the money.
Tap Done to finish. Your SoFi withdrawal is now in progress.
Important Things to Know Before You Withdraw Money from SoFi
While it is easy to withdraw money from SoFi, remember that withdrawing from an investment account is different from taking money out of a regular checking account.
If you need to sell investments before you can withdraw the money, the sale can have tax consequences. For example, selling an investment that you have held for less than a year may result in a short-term capital gain, depending on the outcome of the sale and your individual tax situation.
You should also consider the long-term impact of removing money from your investment account. Money that remains invested has the potential to compound over time. Taking money out reduces the amount you have available to potentially grow.
For that reason, it is worth considering whether the withdrawal is necessary before you proceed.
Final SoFi Withdrawal Tips
The process to withdraw money from SoFi is straightforward: select your investment account, enter the amount, choose your destination bank account, review the details, and slide to withdraw.
The most important thing to remember is that only available cash can be withdrawn. If your money is invested, you may need to sell those investments first and wait for the cash to become available.
Also, consider the tax implications and the effect a withdrawal could have on your long-term investment growth before taking money out. A brokerage account is generally intended for investing and building wealth over time, rather than functioning like a checking account for everyday spending.
