Does Vanguard immediately close a zero balance account?

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chambers136
Posts: 137
Joined: Tue Feb 28, 2017 9:49 am

Does Vanguard immediately close a zero balance account?

Post by chambers136 » Wed May 23, 2018 7:48 am

We have a relatively small amount of money at Vanguard in a brokerage account. Most of out money is at Schwab, mainly because Schwab was the only one of the big three that could accept all of the funds from our former FA. I’d like to consolidate by transferring the Vanguard to Schwab, but there are a few funds, such as the PA muni Admiral bond fund, that I can only get by buying at Vanguard (and possibly transfer to Schwab). I’d like to have access to a Vanguard account to buy these funds if desired. If I transfer all funds from the VG account, does it immediately close the account, or does the account exist for a while? It’s not a big deal to keep some funds at VG if needed, but I’m just trying to simplify things.

bondsr4me
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Re: Does Vanguard immediately close a zero balance account?

Post by bondsr4me » Wed May 23, 2018 8:01 am

I don't believe they do.

My IRA and my wife's IRA accounts have been zero balances since July last year when we transferred to Schwab to get a bonus.

I told VG not to close the accounts because we would likely transfer the balances back to VG after our 1 yr commitment with CS was up.

I still logon to both these VG IRA accounts.

It would be a good idea, if you can, to keep the VG accounts alive and funded with the VG funds.

We will probably be transferring most, if not all of Schwab accounts back to VG upon completely earning our bonuses at Schwab.

Good Luck,

Don

boglefannyc
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Re: Does Vanguard immediately close a zero balance account?

Post by boglefannyc » Wed May 23, 2018 8:12 am

chambers136 wrote:
Wed May 23, 2018 7:48 am
We have a relatively small amount of money at Vanguard in a brokerage account. Most of out money is at Schwab, mainly because Schwab was the only one of the big three that could accept all of the funds from our former FA. I’d like to consolidate by transferring the Vanguard to Schwab, but there are a few funds, such as the PA muni Admiral bond fund, that I can only get by buying at Vanguard (and possibly transfer to Schwab). I’d like to have access to a Vanguard account to buy these funds if desired. If I transfer all funds from the VG account, does it immediately close the account, or does the account exist for a while? It’s not a big deal to keep some funds at VG if needed, but I’m just trying to simplify things.
Many years ago I had a Vanguard money market account which I eventually liquidated. Years after that, I tried to open an account online and it would not accept my information. I called Vanguard and found out that my original account was never closed and all I had to do was answer some questions, update my password and contact info.

delamer
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Re: Does Vanguard immediately close a zero balance account?

Post by delamer » Wed May 23, 2018 10:55 am

I have a couple accounts at Vanguard with zero balances. They been like that for a few years.

My problem is the opposite — I wish they’d close them.

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Steelersfan
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Re: Does Vanguard immediately close a zero balance account?

Post by Steelersfan » Wed May 23, 2018 11:25 am

It seems clear that they don't.

For sure they'll keep them open until after any tax reporting deadlines have passed early the following year. They need the account and transaction information to complete those reports.

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bertilak
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Location: East of the Pecos, West of the Mississippi

Re: Does Vanguard immediately close a zero balance account?

Post by bertilak » Wed May 23, 2018 11:55 am

Steelersfan wrote:
Wed May 23, 2018 11:25 am
It seems clear that they don't.

For sure they'll keep them open until after any tax reporting deadlines have passed early the following year. They need the account and transaction information to complete those reports.
I have two old, zero-balance, accounts that are still open. One hasn't had any transactions since August 2014, when it was emptied. The other account was active for a couple of years more.

I expect Vanguard is responsible for maintaining records for some time, perhaps seven years. This theory will be tested in three more years!

Someone could give VG a call and ask. I am happy to wait things out.
May neither drought nor rain nor blizzard disturb the joy juice in your gizzard. -- Squire Omar Barker, the Cowboy Poet

2015
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Re: Does Vanguard immediately close a zero balance account?

Post by 2015 » Wed May 23, 2018 12:33 pm

delamer wrote:
Wed May 23, 2018 10:55 am
I have a couple accounts at Vanguard with zero balances. They been like that for a few years.

My problem is the opposite — I wish they’d close them.
+1
I have several zero balance accounts. I use customized view to configure my balances and holdings screen to never display accounts with zero balances.

chambers136
Posts: 137
Joined: Tue Feb 28, 2017 9:49 am

Re: Does Vanguard immediately close a zero balance account?

Post by chambers136 » Wed May 23, 2018 1:37 pm

Thanks to all who replied. Sounds like it’s a safe bet that the account will remain open for a long time if I go that route

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