ACH Tx directly from funds in settlement account vs mutual fund sale

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cryptormorf
Posts: 23
Joined: Thu Oct 25, 2018 11:45 am

ACH Tx directly from funds in settlement account vs mutual fund sale

Post by cryptormorf » Wed Dec 19, 2018 5:24 pm

I am planning on using either the brokerage settlement account (Federal Money Market) or VUSXX (Treasury Money Market) as Tier-2 savings account and then transferring funds at the end of the month (or as needed) to my linked checking account.

Is there an effective difference in ACH execution time for transfers initiated directly from the settlement account vs doing a "sell" transaction of VUSXX and choosing the linked checking account as the destination?

Thanks!

Topic Author
cryptormorf
Posts: 23
Joined: Thu Oct 25, 2018 11:45 am

Re: ACH Tx directly from funds in settlement account vs mutual fund sale

Post by cryptormorf » Thu Dec 27, 2018 11:39 am

Answering the question in case some else stumbles on it and finds it helpful.

First, the question itself is technically incorrect because it assumes that the settlement account (Federal Money Market) is fundamentally different than a mutual fund like Treasury Money Market/VUSXX. The settlement account is just another mutual fund (VMFXX).

Since they are both Vanguard mutual funds, they have the same time frame when doing a "sell/transfer" with the proceeds directed to your checking account.

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