Schwab Moneylink --> Vanguard MM fund - how?

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Schwab Moneylink --> Vanguard MM fund - how?

Postby ps56k » Wed May 22, 2013 12:55 pm

I have Schwab for my brokerage account to handle my stocks,
along with it's companion Schwab MM fund, which is treated as an online checking account.

I have Vanguard for most of my mutual funds.... and the Prime MM fund as a parking place.

How, or can I, exchange money from my Schwab checking account to my Vanguard Prime MM account ?
It appears that to setup the "link",
you need to have the classic "checking account ABA routing info" listed along the bottom of your checks.
Since I only have Vanguard mutual funds,
not sure how to make the MM Prime account avail for this transaction setup ?

Usually, I get a physical check mailed from Schwab,
and then turn around and deposit it into my Vanguard account.
With all the mail delays, and subsequent wait times for check clearing,
it can take weeks from beginning at Schwab
to finally having the check cleared for use at Vanguard Prime MM.
Last edited by ps56k on Wed May 22, 2013 1:34 pm, edited 2 times in total.
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Re: Schwab Moneylink --> Vanguard MM fund - how?

Postby Iorek » Wed May 22, 2013 1:00 pm

While they may seem similar to cash, I think those are both mutual funds of securities, so the only way to transfer between them would be to fill out a form requesting a partial liquidation of the Schwab account with a re-deposit to the VG account.

If you want to save a bit of time, you could try linking both fund accounts to a single bank account (so funds would go Schwab-bank-Vanguard, via ACH).
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Re: Schwab Moneylink --> Vanguard MM fund - how?

Postby ps56k » Wed May 22, 2013 1:09 pm

I think my basic question is....
how do you define the Vanguard MM Prime fund as the target for any kind of ABA/ACH transaction
which requires a specific bank routing number + account number
since there is nothing related to the required "bank routing number" ?
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Re: Schwab Moneylink --> Vanguard MM fund - how?

Postby frugaltype » Wed May 22, 2013 1:19 pm

ps56k wrote:I think my basic question is....
how do you define the Vanguard MM Prime fund as the target for any kind of ABA/ACH transaction
which requires a specific bank routing number + account number
since there is nothing related to the required "bank routing number" ?


A few years ago I asked Schwab about this and was told it was not a possible link.
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Re: Schwab Moneylink --> Vanguard MM fund - how?

Postby tfb » Wed May 22, 2013 2:11 pm

ps56k wrote:How, or can I, exchange money from my Schwab checking account to my Vanguard Prime MM account ?
It appears that to setup the "link",
you need to have the classic "checking account ABA routing info" listed along the bottom of your checks.
Since I only have Vanguard mutual funds,
not sure how to make the MM Prime account avail for this transaction setup ?

This is not possible, nor necessary. Just transfer the money to a bank account and use your bank account as the parking space. I assume your bank account is already linked to your Vanguard account. When you are ready to buy Vanguard mutual funds, choose the "buy" option instead of "exchange" from MM fund. Vanguard will debit your bank account. You will get the NAV for the same day even though Vanguard won't get the money until the next day.
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Re: Schwab Moneylink --> Vanguard MM fund - how?

Postby sceptrum » Wed May 22, 2013 2:23 pm

Can you try setting up the reverse link? I was able to setup Vanguard to withdraw funds from my Schwab investor checking account. For this, you will need routing info for your schwab account and enter it on the vanguard website.'

Cheers!
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Re: Schwab Moneylink --> Vanguard MM fund - how?

Postby Rolyatroba » Wed May 22, 2013 2:45 pm

sceptrum wrote:Can you try setting up the reverse link? I was able to setup Vanguard to withdraw funds from my Schwab investor checking account. For this, you will need routing info for your schwab account and enter it on the vanguard website.'


This should solve the problem. Set up on the Vanguard side, not the Schwab side.
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Re: Schwab Moneylink --> Vanguard MM fund - how?

Postby Doc » Wed May 22, 2013 2:51 pm

It is possible and not very difficult. If I could do it anyone can.

Log on to Vanguard and search for "Direct Deposit". I don't remember the details but you wind up with instructions for routing numbers and other data which you take to "your employer". Don't use "Schwab Bank" as your source unless your clearing account is at "Schwab Bank" itself and not "Charles Schwab". Basically you get a bank routing number (Wells Fargo maybe?) and account which you then use to set up "your moneylink bank" account at Schwab. Schwab sends a couple of trial deposits and you need to do some verifying to get everything approved.

The only trouble I had was going the other way because Vanguard tried to get back their 73 cents by reversing the trial transactions and these got rejected which caused some poor rep at Vg to panic. (Schwab just ate their trial amounts.)

I would try to do everything you can without talking to a rep. This is an unusual transaction for most of them and they will probably tell you it can't be done.

(You can also set up the reverse by starting at Schwab. Remember these are one way transactions. You can only push funds. You can't initiate a withdrawal from an outside account with this type of transaction.)
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