Where did the money go?

[lawman]

On 5/25/22 I bought a $10,000.00 muni (CUSIP 341602-E9-7). It had a maturity date of 9/1/2022 (today). I paid $101.024 for the bond. The first coupon date was 03/01/2018. The principal amount was $10,102.40. The accrued interest was $119.44 for a total cost of $10,221.84. It matured today but my Schwab account was only credited $10,000.00..I paid $10,221.84 and received no interest payments. I was expecting my account to be credited more than $10,221.84..Where is my interest?

 

[ShokWaveRider]

On 5/25/22 I bought a $10,000.00 muni (CUSIP 341602-E9-7). It had a maturity date of 9/1/2022 (today). I paid $101.024 for the bond. The first coupon date was 03/01/2018. The principal amount was $10,102.40. The accrued interest was $119.44 for a total cost of $10,221.84. It matured today but my Schwab account was only credited $10,000.00..I paid $10,221.00 and received no interest payments. I was expecting my account to be credited more than $10,000.00..Where is my interest?

Call Schwab and ask. A lot faster than posting here.

 

[aja8888]

On 5/25/22 I bought a $10,000.00 muni (CUSIP 341602-E9-7). It had a maturity date of 9/1/2022 (today). I paid $101.024 for the bond. The first coupon date was 03/01/2018. The principal amount was $10,102.40. The accrued interest was $119.44 for a total cost of $10,221.84. It matured today but my Schwab account was only credited $10,000.00..I paid $10,221.84 and received no interest payments. I was expecting my account to be credited more than $10,221.84..Where is my interest?

Look back in your History for the credit on the accrued interest.

Was a coupon payment due after 5/22/2022 before it matured on 9/1/2022? If not, all you bought was a bond near maturity and just paid for the accrued interest. So you held it for 4+ months.

 

[lawman]

Finally got through to Schwab. They said "sit tight. Your check is in the mail". I'll check back tomorrow.

 

[njhowie]

On 5/25/22 I bought a $10,000.00 muni (CUSIP 341602-E9-7). It had a maturity date of 9/1/2022 (today). I paid $101.024 for the bond. The first coupon date was 03/01/2018. The principal amount was $10,102.40. The accrued interest was $119.44 for a total cost of $10,221.84. It matured today but my Schwab account was only credited $10,000.00..I paid $10,221.84 and received no interest payments. I was expecting my account to be credited more than $10,221.84..Where is my interest?

The interest will show up. It may be sometime today, or possibly even overnight or tomorrow. If you call Schwab, they will tell you that it's not their fault, but DTC. If you do get perturbed to the point that you are getting very annoyed, call Schwab and when they tell you its DTC's fault, say "Fine, let's get DTC on the line".

Don't be concerned about it.

I can tell you about the time when I had a brokered CD from a bank in CA a couple years ago and the final interest payment came a full week after maturity. Around day 2 or 3 after maturity I started sending nasty messages through the Contact Us page on their website, I opened a complaint with FDIC claiming that they defaulted, and continued calling Fidelity until it finally showed up.

If it goes more than a day or two, we can dig in to the disclosures, find the contact at the issuer, and you can go directly to them and ask for confirmation that they did make the final interest payment. One time, when and I had a late interest payment, the issuer sent me the wire confirmation that they sent the funds to the trustee bank.

 

[Car-Guy]

^^^^
Sounds like "float" to me.

And to the OP, while Schwab is "pretty good" about posting things to your account quickly "depending on what it is", I have learned if something isn't posted that you were expecting, just wait a day before making calls. That has saved me from a lot of phone calls and/or emails.

 

[aja8888]

The interest will show up. It may be sometime today, or possibly even overnight or tomorrow. If you call Schwab, they will tell you that it's not their fault, but DTC. If you do get perturbed to the point that you are getting very annoyed, call Schwab and when they tell you its DTC's fault, say "Fine, let's get DTC on the line".

Don't be concerned about it.

I can tell you about the time when I had a brokered CD from a bank in CA a couple years ago and the final interest payment came a full week after maturity. Around day 2 or 3 after maturity I started sending nasty messages through the Contact Us page on their website, I opened a complaint with FDIC claiming that they defaulted, and continued calling Fidelity until it finally showed up.

If it goes more than a day or two, we can dig in to the disclosures, find the contact at the issuer, and you can go directly to them and ask for confirmation that they did make the final interest payment. One time, when and I had a late interest payment, the issuer sent me the wire confirmation that they sent the funds to the trustee bank.

Mulligan has the direct line phone number to the DTC! It's posted here somewhere (Freedom56's thread).

 

[lawman]

Thanks....It's no biggie, only a few bucks but it does open my eyes as to the importance of paying attention..

 

[Hank]

Look back in your History for the credit on the accrued interest.

Was a coupon payment due after 5/22/2022 before it matured on 9/1/2022? If not, all

you bought was a bond near maturity and just paid for the accrued interest. So you held it for 4+ months.

If it matures on 9/1/ and you posted this in the morning of 9/1 I would just wait until tomorrow and see if there is another posting in your Schwab account..

 

[njhowie]

If it matures on 9/1/ and you posted this in the morning of 9/1 I would just wait until tomorrow and see if there is another posting in your Schwab account..

Generally, at least with Fidelity, both the principal and interest gets posted overnight early morning on the maturity date. All of my maturities and interest for today 9/1 were posted to my account at around 3AM.

 

[lawman]

Just checked my account..It's there now..I just figured it would have been included in the matured bond amount.

 

[JoeWras]

Mulligan has the direct line phone number to the DTC! It's posted here somewhere (Freedom56's thread).

I was laughing so hard at that interchange. And it fits Mulligan's avatar too! Just the thought of someone calling the clearinghouse and reading the riot act is so cool.