How Long Does it Take to Transfer Money to Checking Account After Selling Stock
How long does it take to sell stock and get the cash into a checking account?
If you think you'll soon be in a position where you need to sell stock to get money for a purchase, you'll have to do some planning ahead. Keep in mind that there are multiple types of brokerage accounts. Some will let you withdraw cash based on marginable securities. Others require a settlement period after the sale of a stock. If you have cash in a money market, you can usually transfer that cash right away, but it will still take a few days to show up in your checking account.
How long will it take to get my money?
Withdrawing Against a Margin
Some accounts allow you to withdraw against a margin and then sell the stock to cover the short-term loan. These accounts will take two to three days to get the cash transferred from your brokerage account to your checking account.
Money Market Accounts
Funds that are sitting in a money market account with your brokerage will also take two to three days to transfer into your checking account.
Standard Brokerage Accounts
For brokerage accounts like a standard Fidelity account, it will take three days to settle a transaction where you've sold your stock. Then the cash will be available to transfer. Depending on the time of the day that you initiate a transfer, it usually takes two to three days for the funds to show up in your checking account. So, the entire period can take up to six days to sell stock and get the money deposited into your checking. If you don't transfer the money the same day that the sale transaction settles, it may take even longer. Remember, you cannot initiate the outgoing transfer to your checking until the sale settles.
Think you'll need money quickly? Plan ahead!
Liquidating Stock for a Purchase
In conclusion, if you're going to need to liquidate a stock position for a purchase (like a down payment on a home or urgently-need cash to cover a check) you will want to make sure you understand the type of brokerage account you have. By figuring out your account type, you can find out if the cash can be transferred right away or if there is a settlement period. Poor planning for situations like these can cause stress and financial woes, so make sure you plan ahead.
How long does it take you to transfer money to your checking account?
My brokerage account
Questions & Answers
Is a paper check issued if I sell stock?
The preferred way to get the cash after a stock sale is an electronic transfer, but some brokerages will send checks for things like 401k fund transfers and closing accounts.
If I want to get some money out from a stock that has made me some money, do I have to sell my stock or can I get some of my gain out without selling any shares?
For pure stock transactions where there is no margin account, securities need to be sold to realize a gain.
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