Do you want to access the funds in your E*TRADE account? Whether you're looking to simply move some cash to your bank, or you're considering closing your account entirely, knowing the proper steps is crucial. This guide will walk you through everything you need to know, from the various withdrawal methods to the timelines and important considerations. Let's get started!
Understanding Your E*TRADE Account and Your Goals
Before we dive into the "how-to," it's important to understand why you want to cash out. Are you just withdrawing a portion of your cash balance for an expense, or are you looking to liquidate all your investments and close your account? The process can vary slightly depending on your objective.
Partial Withdrawal: You have funds in your ETRADE brokerage or bank account (like a Premium Savings or Max-Rate Checking account) that you want to transfer to an external bank. Your ETRADE account remains open.
Full Liquidation and Account Closure: You want to sell all your investments, withdraw all remaining cash, and close your E*TRADE account. This is a more involved process.
Let's assume for this comprehensive guide that you want to access your funds, potentially leading to a full account closure if that's your ultimate goal.
Step 1: Log In and Navigate to the Transfer Section – Your Gateway to Your Funds!
The very first step, and one you're likely familiar with, is logging into your E*TRADE account.
Visit the E*TRADE Website: Open your web browser and go to the official E*TRADE website (us.etrade.com).
Enter Your Credentials: Input your User ID and Password in the designated fields.
Complete Security Verification (if prompted): E*TRADE employs robust security measures, so you might be asked to complete a two-factor authentication (e.g., a code sent to your phone or email).
Locate "Transfer & Pay": Once successfully logged in, look for the "Transfer & Pay" tab or section. This is typically found in the top navigation bar or within a main menu.
Select "Transfer Money" or "Withdraw Money": Within "Transfer & Pay," you'll usually find an option like "Transfer Money" or "Withdraw Money". Click on this to proceed.
Step 2: Choose Your Withdrawal Method – How Do You Want Your Money?
E*TRADE offers several ways to get your cash. Your choice will depend on the speed you need, the amount you're withdrawing, and any associated fees.
Sub-heading 2.1: Electronic Funds Transfer (ACH) – The Most Common and Cost-Effective Option
ACH (Automated Clearing House) transfers are the most popular method for moving money between E*TRADE and your external bank account. They are generally free for standard transfers.
Linking Your Bank Account: If you haven't already, you'll need to link your external bank account to your E*TRADE account.
This typically involves providing your bank's routing number and your account number.
ETRADE may send small "trial deposits" (usually a few cents) to your bank account to verify it. You'll then need to confirm these amounts back on the ETRADE platform.
Initiate the ACH Transfer:
Select "Transfer Money" or "Withdraw Money."
Choose your E*TRADE account as the "From" account.
Select your linked external bank account as the "To" account.
Enter the amount you wish to withdraw.
Review the details carefully and confirm the transfer.
Processing Time: ACH transfers typically take 1 to 3 business days to process and for the funds to become available in your external bank account.
Sub-heading 2.2: Wire Transfer – For Faster, Larger Transfers (May Incur Fees)
Wire transfers are faster than ACH, often completing on the same business day if initiated before a certain cut-off time. However, they usually come with a fee.
Gather Necessary Information: You'll need specific details for the receiving bank, including:
The bank's name
The bank's address
The receiving account's name
The receiving account number
The bank's SWIFT/BIC code (for international wires) or ABA routing number (for domestic wires).
Initiate the Wire Transfer:
On the "Transfer & Pay" section, look for the option for "Wire Transfer."
Follow the prompts to enter all the required banking information for the recipient.
Specify the amount you want to wire.
Review all details meticulously. Wire transfers are irreversible, so accuracy is paramount!
Fees and Limits: ETRADE generally charges a fee for outgoing wire transfers. Check ETRADE's fee schedule for current rates. There might also be daily limits on wire transfers.
Processing Time: Domestic wire transfers typically process on the same business day if submitted by E*TRADE's cut-off time (often 4:00 PM ET or 6:00 PM ET). International wire transfers can take longer.
Sub-heading 2.3: Request a Check – The Traditional (and Slower) Route
If you prefer a physical check, E*TRADE can mail one to your registered address. This is usually the slowest option.
Requesting a Check:
Within the "Transfer & Pay" section, look for an option to "Request a Check" or similar.
Enter the amount you wish to receive by check.
Confirm your mailing address on file with E*TRADE.
Processing Time: Receiving a check can take several business days, plus mail delivery time.
Fees: While some brokers charge for checks, verify ETRADE's current policy* on check requests.
Sub-heading 2.4: E*TRADE Debit Card (for eligible accounts) – Instant Access for Smaller Amounts
If you have an E*TRADE checking or cash management account with an associated debit card, you can use it for ATM withdrawals or purchases.
ATM Withdrawals: You can withdraw cash from an ATM using your ETRADE debit card. Be aware of daily ATM withdrawal limits (typically up to $1,000 per day for ETRADE, but check your specific card limits) and potential ATM fees from the ATM owner (though E*TRADE may refund some ATM fees depending on your account type).
Point-of-Sale Purchases: Use your debit card for everyday purchases. Daily purchase limits also apply (e.g., up to $5,000 per day for E*TRADE, but verify your specific card limits).
Step 3: Important Considerations Before Withdrawing – Don't Forget These Details!
Before finalizing your withdrawal, keep these crucial points in mind:
Sub-heading 3.1: Sell Investments First!
Crucial Step: If you have investments (stocks, ETFs, mutual funds, etc.) in your E*TRADE account that you want to cash out, you must sell them first.
Settlement Period: Once you sell securities, the funds usually take 1-2 business days to settle before they become available for withdrawal. Do not initiate a withdrawal request for those funds until they have settled in your cash balance.
Market Orders vs. Limit Orders: Consider using market orders for immediate execution if you want to liquidate quickly, but be aware of potential price fluctuations.
Sub-heading 3.2: Account Balance and Pending Transactions
Sufficient Funds: Ensure you have sufficient settled funds in your E*TRADE account to cover the withdrawal amount.
Pending Transactions: Check for any pending trades, deposits, or withdrawals that might impact your available balance. Wait for them to clear before initiating a new withdrawal.
Sub-heading 3.3: Tax Implications
Capital Gains/Losses: Selling investments may trigger capital gains or losses, which have tax implications. Consult a tax professional to understand how your withdrawals might affect your tax situation.
Retirement Accounts (IRAs, 401(k)s): Withdrawing from retirement accounts can have significant tax consequences, including early withdrawal penalties if you're under 59.5 years old. Be extremely cautious and seek professional tax advice before withdrawing from these types of accounts.
Sub-heading 3.4: Account Fees and Transfer Limits
Outgoing Wire Fees: As mentioned, wire transfers typically have fees.
Account Closure Fees: While ETRADE generally doesn't charge for simply withdrawing funds, some brokers might have account closure fees. Verify with ETRADE if you are fully closing your account.
Withdrawal Limits: Be aware of any daily or monthly limits on ACH transfers, debit card withdrawals, or wire transfers.
Step 4: Confirm and Track Your Withdrawal – Peace of Mind!
Once you've initiated your withdrawal request, it's a good practice to:
Review Confirmation: E*TRADE will usually provide an on-screen confirmation and send a confirmation email with the details of your withdrawal. Save this for your records.
Check Transfer Activity: You can typically track the status of your withdrawal within the "Transfer & Pay" or "Activity" section of your E*TRADE account.
Monitor Your Bank Account: Keep an eye on your external bank account to see when the funds arrive.
Step 5: Consider Account Closure (If Applicable) – The Final Step for Leaving E*TRADE
If your intention was to completely cash out and leave E*TRADE, this is the final phase. Do NOT attempt to close your account until all funds are successfully withdrawn and your balance is zero.
Ensure Zero Balance: All investments must be sold, and all cash must be transferred out. Your E*TRADE account balance should be $0.00.
Contact E*TRADE Customer Service:
Call them: This is often the most direct way to initiate an account closure. Be prepared to verify your identity. Their contact number is usually found on their website under "Contact Us." (E*TRADE customer service can be reached at 800-387-2331).
Online Chat/Secure Message: Some brokers allow you to request closure via their online chat or secure message system.
Formal Request: You may need to submit a written request or fill out an account closure form. E*TRADE's representative will guide you through this.
Confirmation of Closure: Request a written confirmation that your account has been successfully closed. This is vital for your records and for tax purposes.
Download Statements: Before closing, download and save all your account statements, tax documents, and trade confirmations. Once the account is closed, you might lose easy access to these.
Frequently Asked Questions (FAQs) about Cashing Out Your E*TRADE Account
Here are 10 common "How to" questions related to cashing out your E*TRADE account:
How to Check My Available Balance on E*TRADE?
You can check your available cash balance by logging into your E*TRADE account and navigating to your account summary or portfolio page. Your cash balance, including settled funds, will be clearly displayed.
How to Link an External Bank Account to E*TRADE?
Log in to your E*TRADE account, go to "Transfer & Pay," then "Transfer Money," and look for an option to "Add External Account" or "Link Bank Account." You will typically need your bank's routing number and your account number, and may complete a small trial deposit verification.
How to Sell My Investments Before Withdrawing from E*TRADE?
To sell investments, log in, navigate to the "Trade" section, select the investment you want to sell, choose "Sell" as the action, specify the quantity, choose your order type (e.g., market order for immediate sale), and confirm the trade. Remember that funds need to settle before withdrawal.
How to Find My E*TRADE Routing Number for Wires?
For incoming wire transfers to ETRADE, the routing number is 056073573. This information is typically available on ETRADE's website under their "Fund Your Account" or "Wire Transfer" instructions.
How to Initiate an International Wire Transfer from E*TRADE?
For international wire transfers, you'll generally need to provide the recipient's bank name, address, account number, SWIFT/BIC code, and potentially an IBAN. E*TRADE usually has a dedicated form or process for international wires within the "Transfer & Pay" section, and fees apply.
How to Know If My Funds are Settled and Ready for Withdrawal?
E*TRADE's platform will show you your "Cash Available for Withdrawal" or "Settled Cash" balance. Funds from stock sales typically settle in 2 business days (T+2).
How to Avoid Fees When Cashing Out from E*TRADE?
To avoid fees, use ACH transfers for withdrawals, as they are generally free. Wire transfers and physical checks may incur charges. Also, be mindful of any potential account closure fees if you're planning to shut down your account.
How to Track the Status of My E*TRADE Withdrawal?
After initiating a withdrawal, you can usually track its status in the "Transfer Activity" or "History" section within your ETRADE account. ETRADE will also send email confirmations.
How to Get a Confirmation of Account Closure from E*TRADE?
Once you've contacted E*TRADE to close your account and all funds have been withdrawn, explicitly request a written confirmation of your account closure for your records. This can often be sent via email or postal mail.
How to Reopen an E*TRADE Account After Closing It?
If you've closed your E*TRADE account, you will typically need to go through the entire account opening process again, as closed accounts are generally irreversible. It's not a simple "reopen" button.
