Transfering 250K online from one bank to another

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Laconic
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Transfering 250K online from one bank to another

Post by Laconic » Sat Sep 23, 2017 1:31 pm

I recently opened an online savings account with Ally and want to move about 250k from my regular checking account to Ally.
Can/should I do it in one transaction?
Will it raise some red flags and should I expect a letter (from perhaps the IRS) asking for explanation?
How would you, the BH behemoths, go about it?
I did not find any limits (set by the IRS, Ally or WellsFargo - my regular bank) on the maximum amount that can be transferred in one online transaction.
Ally limits me to six online transfers per statement period (approx. one month).
TIA

neilpilot
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Re: Transfering 250K online from one bank to another

Post by neilpilot » Sat Sep 23, 2017 1:43 pm

Not an answer to you question, but if you happen to be moving the funds into an Ally no penalty 11mo CD consider splitting the total into multiply CDs to facilitate early withdrawal of any partial amounts.

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prudent
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Re: Transfering 250K online from one bank to another

Post by prudent » Sat Sep 23, 2017 1:43 pm

Institutions do have limits - most often a daily limit and a monthly limit. Doctor of credit keeps a list of ACH limits and it says Wells Fargo has a $5,000 daily limit. I suggest checking with both institutions to see if you can do $250K in one go. But I can't think of any reason why the IRS would care.

neilpilot
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Re: Transfering 250K online from one bank to another

Post by neilpilot » Sat Sep 23, 2017 1:45 pm

prudent wrote:
Sat Sep 23, 2017 1:43 pm
Institutions do have limits - most often a daily limit and a monthly limit. Doctor of credit keeps a list of ACH limits and it says Wells Fargo has a $5,000 daily limit. I suggest checking with both institutions to see if you can do $250K in one go. But I can't think of any reason why the IRS would care.
and I can't imaging a bank with a daily limit as low as $5k

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prudent
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Re: Transfering 250K online from one bank to another

Post by prudent » Sat Sep 23, 2017 1:53 pm

neilpilot wrote:
Sat Sep 23, 2017 1:45 pm
prudent wrote:
Sat Sep 23, 2017 1:43 pm
Institutions do have limits - most often a daily limit and a monthly limit. Doctor of credit keeps a list of ACH limits and it says Wells Fargo has a $5,000 daily limit. I suggest checking with both institutions to see if you can do $250K in one go. But I can't think of any reason why the IRS would care.
and I can't imaging a bank with a daily limit as low as $5k
Indeed!

Chicago60
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Re: Transfering 250K online from one bank to another

Post by Chicago60 » Sat Sep 23, 2017 1:59 pm

prudent wrote:
Sat Sep 23, 2017 1:53 pm
neilpilot wrote:
Sat Sep 23, 2017 1:45 pm
prudent wrote:
Sat Sep 23, 2017 1:43 pm
Institutions do have limits - most often a daily limit and a monthly limit. Doctor of credit keeps a list of ACH limits and it says Wells Fargo has a $5,000 daily limit. I suggest checking with both institutions to see if you can do $250K in one go. But I can't think of any reason why the IRS would care.
and I can't imaging a bank with a daily limit as low as $5k
Indeed!
Perhaps the $5,000 limit applied only for the fake accounts opened at Wells Fargo.....

Nummerkins
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Re: Transfering 250K online from one bank to another

Post by Nummerkins » Sat Sep 23, 2017 2:41 pm

One transfer. When I log into my Ally account it shows transfers INTO Ally are limited to $250,000/day and $1,000,000/30 days.

The ACH network processes over $40 trillion in transfers per year. $250,000 will be a drop in the bucket.

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welderwannabe
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Re: Transfering 250K online from one bank to another

Post by welderwannabe » Sat Sep 23, 2017 2:46 pm

Ally's Transfer Limits:

From an external bank to Ally:
Transfer Speed Maximum Per Day Maximum Every 30 Days
1 business day $250,000 $1,000,000
3 business days $250,000 $1,000,000

From Ally to an external Bank:

Transfer Speed Maximum Per Day Maximum Every 30 Days
1 business day $150,000 $600,000
3 business days $150,000 $600,000
As for the 6 'transfer limit', that is not an Ally thing. It is covered under Federal Reserve Regulation D. It is a limit imposed on savings accounts, money market accounts (aka savings accounts with limited check privileges) etc. All banking institutions are required to have this 6 transaction limit.

It does not apply to ATM withdrawals or counter service (not applicable in Ally's case since they dont have branches).
Last edited by welderwannabe on Sat Sep 23, 2017 2:55 pm, edited 1 time in total.
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TomatoTomahto
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Re: Transfering 250K online from one bank to another

Post by TomatoTomahto » Sat Sep 23, 2017 2:53 pm

The government is interested in large cash transactions (i.e., > $10k). Transferring from Bob's account at Bank A to Bob's account at Bank B will not draw attention.

If I remember correctly, either Vanguard or BoA had a limit of $100k per transfer a while back, and I had to split the transfers into 3 pieces. Nobody cared, other than me. It was a software limitation, as I recall.

orlandoman
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Re: Transfering 250K online from one bank to another

Post by orlandoman » Sat Sep 23, 2017 2:56 pm

I've done lots of ETF transfers into/out of Ally without any problems, but not for $250k.
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aqan
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Re: Transfering 250K online from one bank to another

Post by aqan » Sat Sep 23, 2017 8:45 pm

i have transferred a little under 100K earlier this year.. no red flags yet.

edge
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Re: Transfering 250K online from one bank to another

Post by edge » Sat Sep 23, 2017 9:09 pm

Unlikely. More likely to be a policy limit.
TomatoTomahto wrote:
Sat Sep 23, 2017 2:53 pm
The government is interested in large cash transactions (i.e., > $10k). Transferring from Bob's account at Bank A to Bob's account at Bank B will not draw attention.

If I remember correctly, either Vanguard or BoA had a limit of $100k per transfer a while back, and I had to split the transfers into 3 pieces. Nobody cared, other than me. It was a software limitation, as I recall.

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TomatoTomahto
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Re: Transfering 250K online from one bank to another

Post by TomatoTomahto » Sun Sep 24, 2017 6:27 am

edge wrote:
Sat Sep 23, 2017 9:09 pm
Unlikely. More likely to be a policy limit.
TomatoTomahto wrote:
Sat Sep 23, 2017 2:53 pm
The government is interested in large cash transactions (i.e., > $10k). Transferring from Bob's account at Bank A to Bob's account at Bank B will not draw attention.

If I remember correctly, either Vanguard or BoA had a limit of $100k per transfer a while back, and I had to split the transfers into 3 pieces. Nobody cared, other than me. It was a software limitation, as I recall.
If it were a policy limit, I doubt that they’d let me make 3 transfers of 100k one right after the other, to the same account. Otoh, I guess perhaps the software flaw was that it lost track of whether you had done it already that day. In any case, I don’t think the limitation still exists.

Laconic
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Re: Transfering 250K online from one bank to another

Post by Laconic » Sun Sep 24, 2017 11:20 am

OP here - Thank you all for your responses. I will likely break up the transfer into a few <100k ones.

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Kevin M
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Re: Transfering 250K online from one bank to another

Post by Kevin M » Sun Sep 24, 2017 2:08 pm

Laconic wrote:
Sun Sep 24, 2017 11:20 am
OP here - Thank you all for your responses. I will likely break up the transfer into a few <100k ones.
Why bother? The limit at Ally is $250K, so why not just do it in one shot?

I very recently transferred >$100K into Ally from a credit union (proceeds from a recently matured CD), and I didn't think twice about it. I just had made sure to set up the ACH link from Ally to the CU ahead of time. I didn't even look at the CU transfer limits, but I'm sure they are much lower than Ally's.

The lower limits mentioned are for transfers initiated at other institutions. If you initiate the transfer at Ally, the lower limits at the other end of the transfer do not apply (in my experience).

For even larger transfers you can use wire service, but there's almost certainly a fee involved.

The monthly limitation of 6 transfers only applies to outbound transfers, so transferring into a savings account at Ally will not count toward this limit. The limit does not apply to checking, so typically I'll transfer a larger chunk from Ally savings to Ally checking, and then do smaller outbound chunks from checking.

Kevin
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ImaBeginner
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Re: Transfering 250K online from one bank to another

Post by ImaBeginner » Sun Sep 24, 2017 5:15 pm

Just click send.
If there are issues, they will contact you.
The government has never bothered me about it, and I move money around for quarterly tax payments a fair amount.

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