Vanguard fund transfers

[Looking4Ward]

I'm going to close my BOA accounts and instead start using a local credit union.

But I've got what might be a silly question in regards to how Vanguard sends funds. If I direct Vanguard to send funds from my brokerage account to my credit union checking account, is it considered a wire transfer or a direct deposit?

I ask because the credit unions I've been looking at charge for incoming wire transfers.

 

[REWahoo]

ACH transfer (similar to direct deposit).

 

[Looking4Ward]

Thanks!

 

[Refresher]

Neither really. Its an ACH transfer usually takes 2 days. Definitely not an incoming wire.
If your credit union requires a direct deposit as a requirement for free checking they sometimes treat regular monthly ACH transfers the same as a direct deposit.

 

[mpeirce]

You may want to double check that the transfers will be allowed.

I was helping my DF setup a Capital One 360 Checking account last week and they disallowed setting up a link between Vanguard and Capital One. I looked at their policy and it says they will only link to other checking and savings accounts.

Of course, I regularly send money from Vanguard to Capital One. But this link was setup before when it was ING. Guess I'm grandfathered in.

 

[harley]

You may want to double check that the transfers will be allowed.

I was helping my DF setup a Capital One 360 Checking account last week and they disallowed setting up a link between Vanguard and Capital One. I looked at their policy and it says they will only link to other checking and savings accounts.

Of course, I regularly send money from Vanguard to Capital One. But this link was setup before when it was ING. Guess I'm grandfathered in.

I'm a little confused by this. Who disallowed the link, Capital One or Vanguard? I think you can set multiple links up in Vanguard to send to your various bank accounts.

I always initiate money movements on the Vanguard side. Banks have such crappy little rules. I went through the process to set up a link between my local FL Community Bank and BB&T, because I needed to transfer $100K from BB&T. When I finally got it all set up I found out you can only transfer $2K at a time, and $5K/month. What a waste of time. I ended up writing a BB&T check and depositing it at FCB. A 5 day hold and it was all finished. I'm hoping the banks move into the late 20th century soon.

 

[braumeister]

Banks have such crappy little rules.

Too true.

One thing I've generally found to be true is that it's far easier to work with the receiving bank than the sending bank. They have more of an incentive to ensure a quick, smooth transfer.

 

[mpeirce]

I'm a little confused by this. Who disallowed the link, Capital One or Vanguard? I think you can set multiple links up in Vanguard to send to your various bank accounts.

He was setting it up from Vanguard. The usual "we'll make two transfers of less than a dollar" dance ensued. All seemed fine, then he got a message from Vanguard:

We've removed the bank that you recently added to your Vanguard account(s) due to a notification of invalid instructions sent from your bank. Any services linked to the bank have also been deleted.

This is what Capital One says in their external accounts section:

Your link must be a personal checking account, not a brokerage, money market or savings account - institutions put restrictions on these types of accounts that prevent electronic transfers.

Pretty annoying.

 

[harley]

So it's Capital One's rule, with a "wah, it's not really our fault" clause. Sounds like a good reason to change banks.

 

[JOHNNIE36]

I use BOA for all my normal banking. Pension check and Social Security deposits also go to BOA. I do this for some of the usual freebies like on-line banking, free checking, etc. I also have an Ally money market account. I can transfer funds between these two easily; however, I direct Ally to make all the moves. If I want to transfer $5000 from BOA to Ally, I direct Ally to request the funds from BOA. It takes one day less to make the transfer and there is no fee. I never would tell BOA to make the transfer.