How Long Does it Take After Selling Stock and Transferring Money to Checking Account

If you are going to find yourself in a position where you need to sell stock to get money for a purchase, there are a few things that require planning. First, 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 and if you have cash in a money market, you can usually transfer that right away, but it will still take a few days to show up in your checking account.

Accounts where you can withdraw against a margin, and then sell the stock to cover the short term loan will take two to three days to get the cash transferred from your brokerage account to your checking account. The same goes for funds that are sitting in a money market account with your brokerage.

For brokerage accounts like a standard Fidelity account it will take three days to settle a transaction where you sell stock and 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 account. And that's if you transfer the money the same day that sell transaction settles. Remember, you cannot initiate the outgoing transfer until it settles.

So, if you're going to need to liquidate a stock position for a purchase, like a down payment on a home, or just urgently need cash to cover a check, you will want to make sure you understand the type of brokerage account you have, if the cash can be transferred right away, or if there is a settlement period. Poor planning for these types of situations can cause stress and problems with financial transactions.