Move money between Schwab and Vanguard

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
User avatar
Topic Author
kramer
Posts: 1807
Joined: Wed Feb 21, 2007 2:28 am
Location: World Traveler

Move money between Schwab and Vanguard

Post by kramer »

I am having trouble moving money electronically from my Schwab money market account to my Vanguard money market account.

I have a link between the two accounts set up at Vanguard. I can move money from my Vanguard money market to Schwab money market. But when I do a pull from Vanguard, to move money from Schwab to Vanguard, Schwab says I can't do that.

I asked Vanguard about this and they just gave me an auto-reply to set it up on the Vanguard side, which I have already done and it does not work.

I don't have checkwriting enabled on my Vanguard money market so I don't know what ABA and routing numbers to enter if I set the link to originate on the Schwab side (which would do trial deposits at Vanguard to start the link setup process).

What am I missing?
User avatar
Grandpaboys
Posts: 878
Joined: Sun Mar 04, 2007 9:16 am
Location: Texas

Re: Move money between Schwab and Vanguard

Post by Grandpaboys »

If the link process is set up what is the reason Schwab gives for not allowing the transfer? This process is not meant to be a one way street. When Schwab accepted the set up prosess did they at the time say is was a one way street? I have had as many as 4 Banks that I ACH money between with Vandguard as the originator and have never had this problem. I really wonder weather Schwab can legally do this.
Good Day | GP
User avatar
bertilak
Posts: 8163
Joined: Tue Aug 02, 2011 5:23 pm
Location: East of the Pecos, West of the Mississippi

Re: Move money between Schwab and Vanguard

Post by bertilak »

I would call your Schwab rep and ask him to fix it. That may require you to sign something.

If Schwab can't work this out I would drop them completely and move everything the Vanguard. That xfer is a different process and should work when initiated from the Vanguard end.

I have little patience for this kind of hassle.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker (aka S.O.B.), the Cowboy Poet
icefr
Posts: 613
Joined: Sun Apr 17, 2011 10:50 am

Re: Move money between Schwab and Vanguard

Post by icefr »

I opened a checking account with Schwab to make this easier. It's free and they refund ATM fees worldwide. Then you can push from Vanguard to Schwab just fine since it'll have real routing numbers and such.
User avatar
Grandpaboys
Posts: 878
Joined: Sun Mar 04, 2007 9:16 am
Location: Texas

Re: Move money between Schwab and Vanguard

Post by Grandpaboys »

the problem the OP had was pulling from Schwab. With a Schwab checking account can the OP pull from Vanguard or is that too blocked by Schwab? I assume the checking account at Schwab would be in conjunction with his Money Market Account at Schwab.
Good Day | GP
User avatar
HueyLD
Posts: 8121
Joined: Mon Jan 14, 2008 10:30 am

Re: Move money between Schwab and Vanguard

Post by HueyLD »

.............
Last edited by HueyLD on Sun Feb 08, 2015 8:16 am, edited 1 time in total.
User avatar
Kevin M
Posts: 11733
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Move money between Schwab and Vanguard

Post by Kevin M »

I also have never had a problem with push/pull to/from any bank or credit union checking or savings account, set up on the Vanguard side. I'm pretty sure I had it set up for Schwab at one point, but I no longer use Schwab for anything serious.

Why are you using Schwab?

Kevin
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)
User avatar
Topic Author
kramer
Posts: 1807
Joined: Wed Feb 21, 2007 2:28 am
Location: World Traveler

Re: Move money between Schwab and Vanguard

Post by kramer »

I am sorry that I don't have more info and that I have forgotten some details. This was maybe 3 months ago and I was very busy at the time and so did not address the problem at that time.

But this is the only fund transfer where Schwab money market is the slave or client of the transaction. In all the other bank links I have set up, I have set schwab up as the master (e.g., all the setup was done at Schwab). Whereas with the Vanguard-Schwab link, Vanguard is the master as the setup was at Vanguard.

When I tried to transfer money from Schwab to Vanguard when logged into the Vanguard website, a day later I believe they both alerted me there was a problem.

It sounds like I need to call Schwab.

I thought maybe there was an obvious solution to this but maybe not, it must be resolved by my calling them.

I do have a Schwab checking account and could set it up that way, but I didn't think I would have to do that.
User avatar
Topic Author
kramer
Posts: 1807
Joined: Wed Feb 21, 2007 2:28 am
Location: World Traveler

Re: Move money between Schwab and Vanguard

Post by kramer »

I just commenced a small transfer from schwab to vanguard, done within my vanguard account. So we will see what happens and then I will address it. I will report back, thanks.
User avatar
tigerman3
Posts: 77
Joined: Tue Aug 14, 2012 12:26 am

Re: Move money between Schwab and Vanguard

Post by tigerman3 »

I use an intermediary bank to get around this issue. Setting up a checking acct at Schwab would do the same thing, it seems.
User avatar
Topic Author
kramer
Posts: 1807
Joined: Wed Feb 21, 2007 2:28 am
Location: World Traveler

Re: Move money between Schwab and Vanguard

Post by kramer »

I got a definitive answer from Schwab. Their money market has to be the master between Vanguard money market and Schwab money market (Schwab One account) money transfer. You cannot initiate a pull from Vanguard, even if you are regularly sending money from Vanguard to Scwhab using the same link from within your Vanguard account.

The way around this (strange?) restriction is to use a Schwab checking account or to set it all up at Schwab, sending trial deposits from Schwab money market to Vanguard money market, etc.

I had not wanted to use the Schwab checking account that way for security reasons (e.g., keeping 10's of thousands of dollars in there for a few days, even though I reguarly use my Schwab debit card on that account).

I asked Vanguard for the routing and account number to use (I don't have checks or checkwriting for the Vanguard money market) for set up and they just answered that I don't need it, just set it all up on the Vanguard side. I will have to insist on getting that from them now.

I am assuming Schwab checking does not have this same restriction (that it has to be the master in the transaction).
Post Reply