Cash App has grown beyond just being a peer-to-peer money transfer service. It now allows users to buy and sell stocks directly from the app, making investing in the stock market more accessible. If you’ve invested in stocks using Cash App and are looking to cash out, the process is straightforward but involves several important steps.
In this article, we’ll explore how to cash out stocks on Cash App, from selling your shares to transferring the funds to your bank account. We’ll also cover key things to consider before selling, such as taxes and fees.
Introduction to Cash App Investing
Cash App’s investing feature lets users buy fractional shares of stocks, which means you don’t need to purchase a full share to begin investing. This is great for beginners or anyone wanting to invest small amounts of money. With just a few taps, users can buy or sell stocks, making it one of the easiest platforms to use for stock trading.
However, after buying stocks, there may come a time when you want to sell your shares and cash out. Whether you need to liquidate your investments or simply take profits, knowing how to sell stocks and withdraw funds from Cash App is crucial.
Steps to Cash Out Stocks on Cash App
1. Open the Cash App
The first step in cashing out your stocks is to open the Cash App on your smartphone. If you’ve been using the app to buy and sell stocks, you likely already have the app installed and your account set up. Make sure you are logged in with the correct account before proceeding.
2. Navigate to the “Investing” Tab
Once you’re inside the app, you’ll see several tabs at the bottom of the screen. Look for the tab labeled “Investing.” This is where you can view all your stocks and investments. Tap on it to access your stock portfolio.
In this section, you’ll find a list of all the stocks you’ve purchased, as well as their current market values. You can also see any changes in the value of your investments.
3. Select the Stock You Want to Sell
After navigating to the Investing tab, you’ll need to choose the specific stock you wish to cash out. Tap on the stock’s name to open its details page. Here, you’ll see various information about the stock, including its current price, your total holdings, and any gains or losses you’ve experienced since buying it.
This is an important step, as you’ll want to review the stock’s performance to decide if this is the right time to sell.
4. Tap on “Sell”
Once you’ve reviewed the stock’s information and decided to sell, look for the “Sell” button, usually located near the bottom of the screen. Tap on this button to begin the process of selling your shares.
Cash App gives you the option to sell all of your shares or only a portion. You can specify the exact amount of shares or dollar value you want to sell. If you’re selling fractional shares, Cash App will allow you to sell as little or as much as you like, as long as it’s within the limits of your holdings.
5. Confirm the Sale
After selecting the amount you want to sell, Cash App will ask you to confirm the transaction. Review the details to ensure that everything is correct. The app will show you the price per share at the time of your sale and the total amount you’ll receive once the shares are sold.
Tap “Confirm” to finalize the sale. Once confirmed, the app will process your order, and the funds from the sale will be credited to your Cash App balance.
Transferring Funds to Your Bank Account
1. Check Your Cash App Balance
After selling your stocks, the money will appear in your Cash App balance. To view your available funds, return to the main screen of the app. The balance will be visible at the top of the home screen.
While the funds may show in your balance right away, it may take a short period for the sale to be completely settled. Keep in mind that this timing can depend on market conditions and the type of stocks you sold.
2. Transfer to Your Bank Account
Once the money from your stock sale is in your Cash App balance, you can transfer it to your bank account. To do this, follow these steps:
- Go to the main home screen of Cash App.
- Tap the “Banking” tab, located at the bottom left corner.
- Select “Cash Out.”
You’ll then be prompted to choose how much of your balance you want to transfer. You can transfer the entire amount or just a portion, depending on your needs.
3. Choose the Speed of Transfer
Cash App gives you two options for transferring money to your bank account:
- Standard Transfer: This option takes 1-3 business days to complete, and it’s free of charge.
- Instant Transfer: If you need your money immediately, you can select Instant Transfer, which transfers your funds instantly for a small fee (typically 1.5% of the transfer amount).
Select the option that suits your needs and confirm the transfer. If you choose the standard option, you’ll see the funds in your bank account in a few days. Instant transfers, however, should appear within minutes.
see also: What Is the Most Profitable Trading?
Things to Consider Before Cashing Out Stocks
1. Taxes on Stock Sales
When you sell stocks, the profits you make are subject to capital gains tax. The tax rate depends on how long you’ve held the stock and your total income for the year.
- Short-Term Capital Gains: If you sell stocks within a year of purchasing them, the profits are taxed as ordinary income, which could be a higher tax rate.
- Long-Term Capital Gains: If you hold the stock for more than a year before selling, you may qualify for a lower tax rate, known as long-term capital gains tax.
Be sure to keep track of your stock transactions so you can accurately report any gains or losses when filing your taxes.
2. Fees and Market Conditions
Cash App doesn’t charge commissions for buying or selling stocks, making it an appealing platform for investors. However, like any trading platform, stock prices fluctuate, and the price you sell at may differ slightly from the price shown when you initiate the sale.
Consider market conditions before selling. If the market is volatile, it might be better to wait until prices stabilize, especially if you believe the stock’s value will increase in the future.
3. Timing Your Sale
Timing is everything when it comes to cashing out stocks. You should carefully consider whether now is the best time to sell based on your financial goals and the stock’s performance. If your goal is long-term growth, it may be wise to hold onto your stocks through short-term market fluctuations.
On the other hand, if you need the funds for an immediate financial need or if you believe the stock has reached its peak, it might be time to sell.
Conclusion
Cashing out stocks on Cash App is a simple and user-friendly process, but it’s important to follow the correct steps and understand the financial implications. From navigating the app’s “Investing” tab to confirming your sale and transferring funds to your bank, the process can be completed in just a few minutes.
Before selling, always review your investment strategy, market conditions, and potential tax obligations to ensure that you’re making the best financial decision. By doing so, you can maximize the benefits of your stock investments and feel confident in your ability to manage them through Cash App.
