Schwab 4 day hold ACH

[jim584672]

I think I found a way around Schwab's 4 day hold on ACH deposits. Initiate the ACH from outside Schwab. Then it comes in and is immediately available.


Also PenFed has very restrictive ACH policy. They also can be ACH from outside and this solves the problem.

 

[audreyh1]

Yes, any place with onerous restrictions or fees on ACH I initiate from the other financial institution. Works like a charm!

 

[Another Reader]

It takes days to transfer in to the Schwab checking account. It's very quick to transfer in to the brokerage account and instantaneous to transfer from the brokerage account to the checking account...

 

[OldShooter]

... Schwab's 4 day hold on ACH deposits. ...

What is this? I transfer to and from Schwab and Schwab Bank and a Wells account and have never noticed any unreasonable delays.

 

[jim584672]

What is this? I transfer to and from Schwab and Schwab Bank and a Wells account and have never noticed any unreasonable delays.

If I initiate the ACH from Schwab to pull money in from my bank the money comes in but is not available for 4 days.

 

[kaneohe]

I am not sure what official policy is but I used to think the same way. I thought it was because the sending institution could withdraw the incoming deposit esp. within the next few days and so for your protection. It probably also does not hurt Schwab having extra funds deposited for extra days. Perhaps they might even earn interest and keep some of it while paying you almost nothing.

I know that if I deposit a check at a branch, the receipt says the funds are available the same day. Possibly they might mean for investing...........I am not sure how I found out but perhaps I misunderstood that available same day meant for any purpose.

Subsequently I did outgoing moneylink ACH transfers the same day as the check deposits. No problems there so then I extended that to outgoing transfers the same day as incoming ACH transfers. No problems there either.....(at least so far)...but the incoming ACH transfers were of the type/amount that I expected so I didn't expect those transfers to be reversed.

All transfers initiated at Schwab except for incoming deposits initiated by other institutions (not me) like for SS,other mutual fund companies dividend distributions, and outgoing payments for credit card payments initiated by banks (not me).

 

[MRG]

It probably also does not hurt Schwab having extra funds deposited for extra days. Perhaps they might even earn interest and keep some of it while paying you almost nothing.

...snip..

Oh yes they love the float. I've told the story before but they(the industry)have systems devoted to calculating how long they can legally hold funds.

 

[OldShooter]

We will probably be seeing more float optimization and outright new fees as the industry continues with its cutthroat pricing on mutual fund fees. At some point, maybe already reached, the really aggressive firms like Schwab, Fido, and Blackrock will be down to the point where the fees alone cannot sustain the businesses.

I think it will be interesting to watch as this situation sorts itself out. In the mean time, I'm enjoying the low fees.