Source
r/wealthfront•
Coldfire5

Linking my WF cash account to RH but Green Dot is banned by RH

Edit: looks like Interactive Brokers and TD also banned Green Dot Bank

Hey all

I've done my research on using app-specific password, but this is not the case on my issue.

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I was successfully linking my wealthfront on my RH account via Plaid, but after that, it says RH is not supporting the checking account. After talking to RH customer support, they said RH didnt support linking to Green Dot Bank, which is WF provider for checking and routing numbers.

I've found several articles which also say that Green Dot is not accepted by RH due to growing fraud. Link: https://www.forbes.com/sites/jeffkauflin/2021/12/20/with-fraud-growing-robinhood-becomes-latest-fintech-to-block-customers-from-transferring-money-from-certain-banks/?sh=1759292017fa

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Can y'all provide solution or help to me?

Edit: Screenshot 1: successfully linking using plaid https://i.imgur.com/RlSwT84.jpg

Screenshot 2: cant link with Green Dot account https://i.imgur.com/29mTavd.jpg

Screenshot 3: response from RH customer support https://i.imgur.com/JC0RzQE.jpg

Posted Mar 28, 2023, 9:39 PM UTC ¡ edited

842
zavendarksbane•

I remember running into this a few years ago when I was messing around with Robinhood. The bottom line is that you can't fund Robinhood using the Wealthfront cash account, so you'll have to use another bank.

2
Coldfire5OP•

The thing is it is not only for RH. I cant link my WF to fund my IBKR account. Well, the 4.3% APY comes with an inconvenience. 😞

1
ThatLj•

Well at least it seems like a problem from on the other side not WFs side

1
Coldfire5OP•

Im seeing if people have another way to work with this inconvenience

1
[deleted]•

[deleted]

1
[deleted]•

This is a bit of a red flag. Is greendot banned from being linked to most brokerage accounts? They are banned from TDA as well.

Can we opt out to have a Citi Routing and Account number instead of Greendot?

2
tony_wealthfront•

No, you cannot use partner banks for transferring funds and Green Dot is not blocked by most brokerages/banks.

4
Coldfire5OP•

I have both IBKR and RH. Both of them are banning Green Dot. I called customer support, and she said Green Dot is the one provides atm, debit and checking functionality. Citi, HSBC, etc are only for cash sweep programs

2
[deleted]•

Right. But this is a big problem. Wealthfront needs to reconsider who they are choosing for their “primary partner bank” as I would classify Greendot as such.

6
abm53•

Green Dot offers services specifically aimed at fintechs, and I doubt there are many other banks (i.e. with a bank charter) that do the same. https://www.greendot.com/business-solutions/platform

1
[deleted]•

My problem is if other banks, not just brokerage, will follow suit. What then if we can’t transfer our money out? What if you can’t pay your credit card bills now because they won’t support this routing #? It’s a pretty big issue. Not sure if Wealthfront has a contingency or mitigation olan.

2
tony_wealthfront•

A small minority of institutions block Green Dot. This is not an issue or concern whatsoever.

2
SnooDogs5747•

It’s an issue and concern when your customers are also Robinhood clients. Please tell us something is being done about this.

1
tony_wealthfront•

I'd suggest reaching out to Robinhood with your frustration. We too are frustrated that Robinhood is blocking our clients from using their Cash Accounts. Sorry.

0
SnooDogs5747•

I appreciate the reply

1
Coldfire5OP•

Good point. I hope someone from WF here can answer it

1
zavendarksbane•

Robinhood has been blocking green dot for years, it’s nothing new and I’ve not encountered another institution that gave me any issues yet.

1
HotNHornyBoy•

Looks like there’s a few more institutions which is a bit of a problem. What brokerage are you able to transfer to that’s not blocked? Between wealthfront and which brokerage? Would be interested to see what actually works.

1
abm53•

Vanguard

1
zavendarksbane•

Works just fine for all my utility bills, credit card bills... as far as brokerages I can only attest that it links with Schwab just fine

1
HotNHornyBoy•

That’s weird that it works with Schwab when Schwab owns TDAmeritrade and it doesn’t work there.

1
[deleted]•

Here’s TD Ameritrade’s response:

“Thank you for writing! Regrettably we aren't able to facilitate a link between a TD Ameritrade account and Wealthfront/Green Dot at this time. If you have a bank account at another institution, we can attempt another connection for you, but this error message isn't an error so much as it is just a statement that this bank is not currently supported.”

1
Coldfire5OP•

Ok similar to what i got from RH. I was about to move all of my money to WF, but i guess i would keep 30% at Marcus

1
beng2beng•

I also ran into this GreenDot block.

I was not allowed to link GreenDot from my other Financial Institution but I was able to (from WF's side) link my account from the other FI via Routing/Checking# and make my transfers that way.

WF's mobile app makes it easier for me to do transfers anyway.

1
Coldfire5OP•

Does it mean you send the money from wf to your FI?

1
beng2beng•

no; do your linking from WF's side via your routing and checking.

then you can push/pull $ that way from WF to/from your other FI

1
abm53•

See if they will do a wire instead?

1
HotNHornyBoy•

I don’t believe WF supports wire transfers either 😂

1
abm53•

They absolutely do: https://support.wealthfront.com/hc/en-us/articles/211003843-How-do-I-fund-my-account-

1
HotNHornyBoy•

Wire is for deposits only.

2
[deleted]•

I have an update if you’re still having an issue. I had similar issues adding Wealthfront directly from the TD Ameritrade site since they blocked Greendot.

If you are trying to transfer money between Wealthfront and Robinhood, Wealthfront suggest you transfer money from WF to another insitutition first then to Robinhood which is quite a hassle. However, I think there’s a workaround.

You can add Robinhood’s routing number and your account # to Wealthfront directly. then from there, you can transfer from Wealthfront to Robinhood and push money. Or also pull money using Wealthfront to pull from Robinhood.

I was able to successfully do this workaround and just needed micro deposit verification (wealthfront sends micro deposit to your broker which you need to verify on wealthfront’s end)

1
Coldfire5OP•

Thanks for trying it. I believe if we were to do this, we would not be able to automated investing on the robinhood. Basically i cant invest money automatically every 2 weeks

1
[deleted]•

I’m not sure how Robinhood works. But I assume you can. Doesn’t RH rebalance or buy stocks for you automatically if you have “cash” available to spend?

1
holy_ninja3•

A simple solution is activating your WF Cash virtual debit card and using that to fund Robinhood account

1
abm53•

I find it really funny that Robinhood blocks cash transfers with Green Dot Bank, in the name of fraud prevention — but they are perfectly happy to let you buy stock shares of Green Dot Bank (NYSE:GDOT) using a Robinhood account.

0
Coldfire5OP•

Well, IBKR also doesnt allow me to link Green Dot

1
[deleted]•

[deleted]

1
InDEThER•

I am now regretting moving cash to WF of they are prone to fraud to the point that other banks have banned them. Fortunately, SoFi hasn't banned WF yet.

-2
tony_wealthfront•

This is also misleading. Wealthfront is not prone to fraud. Robinhood simply blocks Green Dot routing numbers because they've likely seen more fraud using Green Dot routing numbers. This has nothing to do with Wealthfront as many institutions use Green Dot for banking services.

13
Coldfire5OP•

Im worried all banks will block or ban Green Dot. Then our money will be stuck

1
abm53•

Look at the Forbes article you linked to: Robinhood blocked eight banks, including PNC, which is the sixth largest bank in the U.S.
Robinhood could choose to implement fraud protection in a way that doesn't completely prevent you from using a certain bank. I really think you should be taking this up with Robinhood.

1
Coldfire5OP•

Not only RH. I know people seem to hate RH. But IBKR and TD also blocked green dot

1
abm53•

It's not only Green Dot that IBKR and TD are blocking - again, look at it the other way around instead.

1
tony_wealthfront•

Robinhood could choose to implement fraud protection in a way that doesn't completely prevent you from using a certain bank. I really think you should be taking this up with Robinhood.

Agreed. I totally get the frustration but that should be directed at RH in this case.

1