How long does an ACH transfer to checking usually take?

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Eureka
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How long does an ACH transfer to checking usually take?

Post by Eureka » Tue Nov 20, 2018 5:35 pm

I was going to transfer some money from my Federal Money Market Fund (non-IRA) to my bank checking account this afternoon. I have never done this before. I have had bank transfer for years, but I've only used it for IRA distributions. Vanguard said the money won't be in my checking account until Monday, November 26 -- six days from now. I don't think an IRA distribution has ever taken that long to get transferred.

I'm starting to wonder what the point is, as I can write a check on the same money market fund, drive a mile to my bank and have the money today, or tomorrow or Friday or Saturday. I'm not impressed.

jebmke
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Re: How long does an ACH transfer to checking usually take?

Post by jebmke » Tue Nov 20, 2018 5:37 pm

I normally do a bank transfer in the morning. Funds hit my USAA bank account the next day.
When you discover that you are riding a dead horse, the best strategy is to dismount.

sailaway
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Re: How long does an ACH transfer to checking usually take?

Post by sailaway » Tue Nov 20, 2018 5:41 pm

It depends on a lot of factors, but mostly what the institution wants to do for a specific kind of account. I can do a same day transfer for a large fee, a next day transfer for considerably less and a five day transfer for a negligible fee.

Eureka
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Re: How long does an ACH transfer to checking usually take?

Post by Eureka » Tue Nov 20, 2018 5:42 pm

jebmke wrote:
Tue Nov 20, 2018 5:37 pm
I normally do a bank transfer in the morning. Funds hit my USAA bank account the next day.

So the difference between doing it in the morning and afternoon is five days?! That's nuts.

sailaway
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Re: How long does an ACH transfer to checking usually take?

Post by sailaway » Tue Nov 20, 2018 5:44 pm

Eureka wrote:
Tue Nov 20, 2018 5:42 pm
jebmke wrote:
Tue Nov 20, 2018 5:37 pm
I normally do a bank transfer in the morning. Funds hit my USAA bank account the next day.

So the difference between doing it in the morning and afternoon is five days?! That's nuts.
In this case, only two of those days are business days.

RickBoglehead
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Re: How long does an ACH transfer to checking usually take?

Post by RickBoglehead » Tue Nov 20, 2018 5:53 pm

You sold this afternoon. Prior to the market closing? Or after?

Vanguard sells today, settles tomorrow and ACH starts. On Thursday, everything is closed. ACH can take up to 3 days (banks are closed on the weekend too). So it leaves Vanguard and may not be at your bank until Monday. Might be Friday.

Lousy timing on your part if you were in a rush.

Write a check, deposit with bank's app. That's immediate for me.
Last edited by RickBoglehead on Tue Nov 20, 2018 5:59 pm, edited 1 time in total.

Eureka
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Re: How long does an ACH transfer to checking usually take?

Post by Eureka » Tue Nov 20, 2018 5:59 pm

RickBoglehead wrote:
Tue Nov 20, 2018 5:53 pm
You sold this afternoon. Prior to the market closing? Or after?

Vanguard sells today, settles tomorrow and ACH starts. On Thursday, everything is closed. ACH can take up to 3 days (banks are closed on the weekend too). So it leaves Vanguard and may not be at your bank until Monday. Might be Friday.

Lousy timing on your part if you were in a rush.
After the close. As I said, I can just drive to the bank. It will be open all day Wednesday and Friday and a half-day Saturday. There is almost never anyone in line there. The longest line I've ever seen there in 23 years is two people, including me. Small-town living. Whenever I try to adopt modern electronic banking processes, I find myself wondering what the big advantage is.

RickBoglehead
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Re: How long does an ACH transfer to checking usually take?

Post by RickBoglehead » Tue Nov 20, 2018 6:01 pm

You need to understand the difference between a bank and a mutual fund account. You sold tomorrow. It settles Friday and leaves Vanguard, arriving at your bank in 1 day. Sound very good, except that you didn't understand.

sailaway
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Re: How long does an ACH transfer to checking usually take?

Post by sailaway » Tue Nov 20, 2018 6:05 pm

Eureka wrote:
Tue Nov 20, 2018 5:59 pm
RickBoglehead wrote:
Tue Nov 20, 2018 5:53 pm
You sold this afternoon. Prior to the market closing? Or after?

Vanguard sells today, settles tomorrow and ACH starts. On Thursday, everything is closed. ACH can take up to 3 days (banks are closed on the weekend too). So it leaves Vanguard and may not be at your bank until Monday. Might be Friday.

Lousy timing on your part if you were in a rush.
After the close. As I said, I can just drive to the bank. It will be open all day Wednesday and Friday and a half-day Saturday. There is almost never anyone in line there. The longest line I've ever seen there in 23 years is two people, including me. Small-town living. Whenever I try to adopt modern electronic banking processes, I find myself wondering what the big advantage is.
Have you used these checks and verified how long they take to clear?

jebmke
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Re: How long does an ACH transfer to checking usually take?

Post by jebmke » Tue Nov 20, 2018 6:12 pm

RickBoglehead wrote:
Tue Nov 20, 2018 6:01 pm
You need to understand the difference between a bank and a mutual fund account. You sold tomorrow. It settles Friday and leaves Vanguard, arriving at your bank in 1 day. Sound very good, except that you didn't understand.
I do a bank transfer from the Municipal Money Market Fund which is held in our joint account (which has not been converted to a brokerage account so it is held as a mutual fund). When I do a bank transfer in the morning, it hits my bank the next day (business day -- I always do this when there are two biz days in a row).
When you discover that you are riding a dead horse, the best strategy is to dismount.

Eureka
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Re: How long does an ACH transfer to checking usually take?

Post by Eureka » Tue Nov 20, 2018 6:26 pm

sailaway wrote:
Tue Nov 20, 2018 6:05 pm
Eureka wrote:
Tue Nov 20, 2018 5:59 pm
RickBoglehead wrote:
Tue Nov 20, 2018 5:53 pm
You sold this afternoon. Prior to the market closing? Or after?

Vanguard sells today, settles tomorrow and ACH starts. On Thursday, everything is closed. ACH can take up to 3 days (banks are closed on the weekend too). So it leaves Vanguard and may not be at your bank until Monday. Might be Friday.

Lousy timing on your part if you were in a rush.
After the close. As I said, I can just drive to the bank. It will be open all day Wednesday and Friday and a half-day Saturday. There is almost never anyone in line there. The longest line I've ever seen there in 23 years is two people, including me. Small-town living. Whenever I try to adopt modern electronic banking processes, I find myself wondering what the big advantage is.
Have you used these checks and verified how long they take to clear?
I have checked how long they take to clear, but it's been awhile since I wrote one to myself. This unusual situation arose when I skipped my monthly IRA distribution for November to limit my 2018 AGI for Affordable Care Act purposes. (Rising interest rates have meant I've made much more on my taxable savings than I thought I would this year.) My checking account balance is starting to dwindle a bit quicker than I had hoped. Next year, I won't have to deal with ACA income limits. I did learn a lesson from this, though: I like having a pretty big checking account balance to feel comfortable.

Spirit Rider
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Re: How long does an ACH transfer to checking usually take?

Post by Spirit Rider » Tue Nov 20, 2018 6:27 pm

jebmke wrote:
Tue Nov 20, 2018 6:12 pm
RickBoglehead wrote:
Tue Nov 20, 2018 6:01 pm
You need to understand the difference between a bank and a mutual fund account. You sold tomorrow. It settles Friday and leaves Vanguard, arriving at your bank in 1 day. Sound very good, except that you didn't understand.
I do a bank transfer from the Municipal Money Market Fund which is held in our joint account (which has not been converted to a brokerage account so it is held as a mutual fund). When I do a bank transfer in the morning, it hits my bank the next day (business day -- I always do this when there are two biz days in a row).
Big difference in settlement rules between a money market fund and a non MMF mutual fund .

Eureka
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Re: How long does an ACH transfer to checking usually take?

Post by Eureka » Tue Nov 20, 2018 6:30 pm

Spirit Rider wrote:
Tue Nov 20, 2018 6:27 pm
jebmke wrote:
Tue Nov 20, 2018 6:12 pm
RickBoglehead wrote:
Tue Nov 20, 2018 6:01 pm
You need to understand the difference between a bank and a mutual fund account. You sold tomorrow. It settles Friday and leaves Vanguard, arriving at your bank in 1 day. Sound very good, except that you didn't understand.
I do a bank transfer from the Municipal Money Market Fund which is held in our joint account (which has not been converted to a brokerage account so it is held as a mutual fund). When I do a bank transfer in the morning, it hits my bank the next day (business day -- I always do this when there are two biz days in a row).
Big difference in settlement rules between a money market fund and a non MMF mutual fund .
Can you elaborate?

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smarcus3
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Re: How long does an ACH transfer to checking usually take?

Post by smarcus3 » Tue Nov 20, 2018 6:32 pm

I don't believe that Vanguard allows outgoing wires from IRAs. Fidelity does which are instant.
This is my personal opinion. I'm an engineer not a financial advisor.

jebmke
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Re: How long does an ACH transfer to checking usually take?

Post by jebmke » Tue Nov 20, 2018 6:35 pm

Spirit Rider wrote:
Tue Nov 20, 2018 6:27 pm
jebmke wrote:
Tue Nov 20, 2018 6:12 pm
RickBoglehead wrote:
Tue Nov 20, 2018 6:01 pm
You need to understand the difference between a bank and a mutual fund account. You sold tomorrow. It settles Friday and leaves Vanguard, arriving at your bank in 1 day. Sound very good, except that you didn't understand.
I do a bank transfer from the Municipal Money Market Fund which is held in our joint account (which has not been converted to a brokerage account so it is held as a mutual fund). When I do a bank transfer in the morning, it hits my bank the next day (business day -- I always do this when there are two biz days in a row).
Big difference in settlement rules between a money market fund and a non MMF mutual fund .
OP said was using Federal MMF - I'd assume that would go just as fast. Has from my other (brokerage account).
When you discover that you are riding a dead horse, the best strategy is to dismount.

Spirit Rider
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Re: How long does an ACH transfer to checking usually take?

Post by Spirit Rider » Tue Nov 20, 2018 6:48 pm

Eureka wrote:
Tue Nov 20, 2018 6:30 pm
Spirit Rider wrote:
Tue Nov 20, 2018 6:27 pm
Big difference in settlement rules between a money market fund and a non MMF mutual fund .
Can you elaborate?
MMFs settle immediately. Non-MMF mutual funds settle the day after the order is accepted.

A transfer before 4PM ET from my MMF at Fidelity would be in my credit union account SOB tomorrow.

As pointed out by @RickBoglehead a sell order for a non-MMF mutual fund after 4PM ET today will not sell until tomorrow, settle Friday and assuming a one-day ACH time will not be in my credit union until Monday.

mptfan
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Re: How long does an ACH transfer to checking usually take?

Post by mptfan » Tue Nov 20, 2018 6:48 pm

In my experience, ACH transfers usually take 2 business days. I have read that NACHA is working on same day ACH transactions to be implemented by the end of 2020...

Currently, most ACH payments are settled on the next business day. There are many uses of ACH payments, however, for which businesses and consumers could benefit from same-day processing. This NACHA rule change will enable ACH Originators that desire same-day processing the option to send same-day ACH transactions to accounts at any receiving financial institution (RDFI). The Rule includes a “Same Day Fee” on each Same Day ACH transaction so that RDFIs would recover, on average, their costs for enabling and supporting Same Day ACH.

The Rule will enable the option for same-day ACH payments through new ACH Network functionality, without affecting existing ACH schedules and capabilities:

Originating financial institutions (ODFIs) will be able to submit files of same-day ACH payments through two new clearing windows provided by the ACH Operators (Note: The actual ACH Operator schedules are not determined by the NACHA Operating Rules.):
A morning submission deadline at 10:30 AM ET, with settlement occurring at 1:00 PM.
An afternoon submission deadline at 2:45 PM ET, with settlement occurring at 5:00 PM.

https://www.nacha.org/rules/same-day-ac ... er-phase-1
Last edited by mptfan on Tue Nov 20, 2018 6:58 pm, edited 4 times in total.

jebmke
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Re: How long does an ACH transfer to checking usually take?

Post by jebmke » Tue Nov 20, 2018 6:52 pm

mptfan wrote:
Tue Nov 20, 2018 6:48 pm
In my experience, ACH transfers usually take 2 business days.
I believe there may be some variability based on the destination bank. I know that ACH transfers between my savings account (AMEX) and my bank also take <= 24 hours. It could be that VG prioritizes accounts. I do an outbound ACH monthly.
When you discover that you are riding a dead horse, the best strategy is to dismount.

Spirit Rider
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Re: How long does an ACH transfer to checking usually take?

Post by Spirit Rider » Tue Nov 20, 2018 6:54 pm

jebmke wrote:
Tue Nov 20, 2018 6:35 pm
OP said was using Federal MMF - I'd assume that would go just as fast. Has from my other (brokerage account).
I missed that. However, ACH times are a function of the sending institution and the receiving institution. Monday under these circumstances is not really late. After 4PM today, an ACH will be typically be initiated tomorrow Wednesday. Monday is only a two-day transfer time. Typical ACH times are 1-3 days, 2-days is average and not atypical at all.

hicabob
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Re: How long does an ACH transfer to checking usually take?

Post by hicabob » Tue Nov 20, 2018 6:59 pm

For a datapoint, my Cap1-360MM to Wells Fargo checking ACH took 2 days a few days ago. Not bad - I always figure 3 days to be safe.

RickBoglehead
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Re: How long does an ACH transfer to checking usually take?

Post by RickBoglehead » Tue Nov 20, 2018 7:38 pm

I have 1 day ACH with Ally.

tony_roach
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Re: How long does an ACH transfer to checking usually take?

Post by tony_roach » Tue Nov 20, 2018 8:41 pm

For me usually the next business day when i transfer from my Fidelity settlement fund to my bank (unless you do this over the weekend or a holiday)

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