Loss of Vanguard's "Mobile Check" feature......

[Looking4Ward]

So I had a rather large check that I wanted to use the "Mobile Check" feature of the Vanguard smart phone app to take a picture of the check and have it deposited to my MM account.

Except that every time I tried to take a picture of the check I got a message that I needed to call Vanguard.

So I did, and explained what I was trying to do. The rep paused for a second and told me that "It looks like you upgraded your accounts to the new brokerage account format and that feature isn't supported".

He had no idea if it would ever be supported. I made a comment about how happy I was I "upgraded" due in large part to Vanguards constant prodding to do so only to find a very useful feature is no longer available.

 

[Onward]

the new brokerage account format

What's that?

 

[FireBug]

I also would like clarification on the "new format". Not sure would that means. I know it's frustrating when something doesn't work as planned, but when reading this thread I immediately went to Vanguard and within 15 seconds located their mobile deposit's FAQ Section. I'm not sure if your situation is as stated below, but if it is, in all fairness they stated the limitations. Take heart because it looks like it will be available soon.

Can I use mobile check investment to add money to my brokerage account settlement fund?
Not if you have a Vanguard Brokerage Account that holds Vanguard mutual funds, including your settlement fund, but we expect to offer that service soon. If your settlement fund isn't in your Vanguard Brokerage Account, you can still invest checks using mobile check investment.

https://personal.vanguard.com/us/help/FAQTechHelpMobileCheckInvestmentContent.jsp#1

 

[user5027]

What's that?

A brokerage account that can hold mutual funds.

 

[Senator]

Do the mobile upload/deposit to a local account, and then transfer the money to Vanguard.

 

[Looking4Ward]

Do the mobile upload/deposit to a local account, and then transfer the money to Vanguard.

Tried that, the amount of the check was larger than the daily limit. Vanguard's daily mobile check transaction limit is much higher than most conventional banks, it just doesn't work on the "new" combined account format.

 

[Looking4Ward]

I also would like clarification on the "new format". Not sure would that means. I know it's frustrating when something doesn't work as planned, but when reading this thread I immediately went to Vanguard and within 15 seconds located their mobile deposit's FAQ Section. I'm not sure if your situation is as stated below, but if it is, in all fairness they stated the limitations. Take heart because it looks like it will be available soon.

Yeah, saw that. But initially when I tried to use the app it told me I needed to call Vanguard, nothing more. So I did and that's when I was told the same info.

As far as the "new format" - I was referring to Vanguard's push to have those with separate MM and Brokerage accounts combine them. It was presented as an "upgrade" so I was disappointed to find that such an upgrade results in the loss of what I've always found to be a very useful feature.

 

[MRG]

Yeah, saw that. But initially when I tried to use the app it told me I needed to call Vanguard, nothing more. So I did and that's when I was told the same info.

Doing docs stinks.

 

[Ginny]

And don't forget to get new checks for the new brokerage statement! They did not tell me that and it made a problem for me!!!

 

[MooreBonds]

Do the mobile upload/deposit to a local account, and then transfer the money to Vanguard.

My bank usually takes several days to clear large checks. Then, Vanguard takes up to 7 days to clear ETF transfers from my bank to my Vanguard cash account before I can buy stocks with the cash...

 

[FireBug]

@Looking4ward....thanks for the info.

 

[meierlde]

My bank usually takes several days to clear large checks. Then, Vanguard takes up to 7 days to clear ETF transfers from my bank to my Vanguard cash account before I can buy stocks with the cash...

Note that part of the delay is involved in converting the funds to federal fund. I found this out when a check cleared but did not show up on the vanguard account. They said it took an extra day to convert the funds into federal funds (they must have had to find the wizard)

 

[CaliKid]

That sucks. It seems like a fundamental basic that should be with all accounts.

 

[samclem]

I've resisted these calls by VGD to "upgrade" to their brokerage account. As long as I'm just using their MFs, I sure don't see any advantage (in addition to this mobile check glitch, IIRC, for brokerage accounts they have a lot more time before they have to provide you with 1099s for the previous tax year). Maybe there's an advantage for them.

 

[meierlde]

I've resisted these calls by VGD to "upgrade" to their brokerage account. As long as I'm just using their MFs, I sure don't see any advantage (in addition to this mobile check glitch, IIRC, for brokerage accounts they have a lot more time before they have to provide you with 1099s for the previous tax year). Maybe there's an advantage for them.

Actually once upon a time a while ago Vanguard did not run a brokerage directly and relied on Pershing to run the brokerage (2008). Thus the mutual fund accounts were maintained in house but the brokerage was essentially outsourced. In 2008 Vanguard started running the brokerage directly.https://www.bogleheads.org/forum/viewtopic.php?t=35975
It is only this historical oddity that lead to the two sets of accounts. So vanguard wants to fix it.

 

[Looking4Ward]

I don't even need the brokerage account, it was a legacy account from back when I was trading non-Vanguard funds. It's been empty for years. I've messaged my rep asking if they can just close that brokerage account and reclassify the remainder as a standard mutual fund account, especially since I've locked down the VG funds I plan on maintaining for the next few decades.

 

[samclem]

So vanguard wants to fix it.

It doesn't look like much of a "fix" for customers who just want to hold VGD mutual funds. It looks like a downgrade.

 

[MRG]

Note that part of the delay is involved in converting the funds to federal fund. I found this out when a check cleared but did not show up on the vanguard account. They said it took an extra day to convert the funds into federal funds (they must have had to find the wizard)

I've met the wizard at a different fund company. He was a bit of code that delayed the deposits from occurring until as late as legally possible.

This code ran on the same system as the application we were responsible for. My VP started getting calls our application was unusable due to slow response. He asked me what was occurring, the wizard was consuming most of the machine. Per his direction I detuned the wizard, making it run behind our applications.

The next morning the wizards owner called me. He explained I'd cost them 75k in float! I have no idea if that was the right number, but he was 75k worth of PO'ed!

I've never seen hardware acquired that fast. The wizard had a new home. I have no idea if VGI actually does that today. In 1990 float was worth a bit more.

 

[Looking4Ward]

The response from Vanguard:

"I am sorry to hear you had a bad experience with the Vanguard Mobile Check Deposit feature. You are able to open a mutual fund account and transfer the positions but we would require Change of Ownership and new account registration paperwork to do so. We are in the process of moving all clients to the Vanguard Brokerage Account platform; so that we can keep expenses low and pass on the savings to our clients in the form of low expense ratios."