Transferring Money from Bank to Brokerage Account

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DTalos
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Transferring Money from Bank to Brokerage Account

Post by DTalos »

What is the safest and most effective way to transfer a large amount of money from my checking account at a megabank to my brokerage account at another company? Large amount of money is subjective but let's say between $10,000 to $100,0000. I've never done this before and naturally am a little anxious about a wire transfer and getting all the numbers correct and also for the megabank flagging/freezing the account because they don't like large withdrawals or $3,000 being withdrawn every week.
000
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Re: Transferring Money from Bank to Brokerage Account

Post by 000 »

I have always done the transfer at my broker from my linked bank account over ACH. I have done this for transfers between 10,000 and 100,000 with no issues.
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Toons
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Re: Transferring Money from Bank to Brokerage Account

Post by Toons »

Ditto
ACH




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CAsage
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Re: Transferring Money from Bank to Brokerage Account

Post by CAsage »

Link the accounts, then ACH. If you don't have that setup already, it may take a couple days so plan ahead. Usually some validation, either via email or small deposits in/out to confirm access to both accounts.
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DTalos
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Re: Transferring Money from Bank to Brokerage Account

Post by DTalos »

CAsage wrote: Mon Aug 24, 2020 4:52 pm Link the accounts, then ACH. If you don't have that setup already, it may take a couple days so plan ahead. Usually some validation, either via email or small deposits in/out to confirm access to both accounts.

So after the accounts are linked, then initiate ACH on brokerage company's website? If you want to transfer $30,000 from megabank to brokerage, would you recommend doing it all at once or in ten $3,000 transfers?
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CAsage
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Re: Transferring Money from Bank to Brokerage Account

Post by CAsage »

DTalos wrote: Mon Aug 24, 2020 4:59 pm So after the accounts are linked, then initiate ACH on brokerage company's website? If you want to transfer $30,000 from megabank to brokerage, would you recommend doing it all at once or in ten $3,000 transfers?
I would do it all at once. Generally the transfer would be to/from your settlement or MM fund. My "link" to my household checking account pops up as an option anytime I sell or withdraw funds, as a destination (or source...when buying) option. Maybe once to prove it to yourself, then do it all. Certainly I can't see ten transfers! Also the case when I'm funding my child's account at a different brokerage.
Salvia Clevelandii "Winifred Gilman" my favorite. YMMV; not a professional advisor.
Broken Man 1999
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Re: Transferring Money from Bank to Brokerage Account

Post by Broken Man 1999 »

DTalos wrote: Mon Aug 24, 2020 4:59 pm
CAsage wrote: Mon Aug 24, 2020 4:52 pm Link the accounts, then ACH. If you don't have that setup already, it may take a couple days so plan ahead. Usually some validation, either via email or small deposits in/out to confirm access to both accounts.

So after the accounts are linked, then initiate ACH on brokerage company's website? If you want to transfer $30,000 from megabank to brokerage, would you recommend doing it all at once or in ten $3,000 transfers?
Yep, that works.

I have never broken up deposits or withdrawals to/from my credit union account or brokerage account at Vanguard. And some have been very large.

Broken Man 1999
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crefwatch
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Re: Transferring Money from Bank to Brokerage Account

Post by crefwatch »

Aside from the fact that it's not "dangerous", another reason to make only a single transfer is that many Bank Money Market accounts (in case that's what's involved as the source ... ) have monthly limits on the NUMBER of withdrawals.
wriley4409
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Re: Transferring Money from Bank to Brokerage Account

Post by wriley4409 »

making ten deposits of $3,000 within a short time may be construed as 'structuring' the transactions. That could have really bad consequences. https://www.money-education.com/resourc ... s-criminal
Topic Author
DTalos
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Re: Transferring Money from Bank to Brokerage Account

Post by DTalos »

wriley4409 wrote: Mon Aug 24, 2020 5:07 pm making ten deposits of $3,000 within a short time may be construed as 'structuring' the transactions. That could have really bad consequences. https://www.money-education.com/resourc ... s-criminal

Thank you for the link, but thankfully this isn't cash (i.e. paper currency/bills).
flyingcows
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Re: Transferring Money from Bank to Brokerage Account

Post by flyingcows »

+1 on the ACH transfer, I have always done ACH pulls (initiate transfer from the brokerage, to pull money from your bank account) because my bank charges a fee for transfering out, but the fee doesn’t apply to pulls.

The largest ACH pull ive done was 300k and the funds were available in my brokerage in 2 days.
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cchrissyy
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Re: Transferring Money from Bank to Brokerage Account

Post by cchrissyy »

Once they are electronically linked i would do it as one big transfer, unless one of the companies involved has a lower limit.
If so, drop the ACH idea and either do a wire or a paper check.
My bank will print a check written from me to myself for no charge and mail it to my house if i don't mind waiting a few days or I can pick it up in-person if i want it immediately. For larger figures I do the latter so there's no stress about lost mail.
Then mobile deposit the check to brokerage. Call them first to see what the limit is. They can raise it on request. I've had mobile check deposits show in my account the same day just like a wire does.
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LiveSimple
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Re: Transferring Money from Bank to Brokerage Account

Post by LiveSimple »

Once your bank is configured within the brokerage then you do not need to worry for $100,000 it will work.
There are transparency in both sides.
epictetus
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Re: Transferring Money from Bank to Brokerage Account

Post by epictetus »

Fidelity has a limit of 250,000 that can be done in one ACH transfer.
Focus on what you can control
arf30
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Re: Transferring Money from Bank to Brokerage Account

Post by arf30 »

I always pull from the brokerage side via ACH, brokerages have very high limits and banks tend to not place limits on pulls.
student
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Re: Transferring Money from Bank to Brokerage Account

Post by student »

Like others, I also suggest ACH.
RetiredAL
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Re: Transferring Money from Bank to Brokerage Account

Post by RetiredAL »

OP -

Several years back, I moved something around $100K from my Dad's USAA to his Schwab via his Wells Fargo Checking. Only issue I had was that USAA's on-line transfer balked, because it was over $50K, so it required talking to their CSR, I think mainly to make sure no scamming/fleecing was going on. WFB did not bat an eye!
PaunchyPirate
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Re: Transferring Money from Bank to Brokerage Account

Post by PaunchyPirate »

I also do it from the Brokerage side using their ACH method. I set up the linkage between the accounts from the brokerage side (and only from the brokerage side). Then I do a test transfer of a few hundred dollars to make sure it all works as planned. Then I move the full desired amount over a day or two later. My bank has never questioned transfers I've made in this manner. I've done up to about $100,000 I guess.
MikeG62
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Re: Transferring Money from Bank to Brokerage Account

Post by MikeG62 »

CAsage wrote: Mon Aug 24, 2020 5:03 pm
DTalos wrote: Mon Aug 24, 2020 4:59 pm So after the accounts are linked, then initiate ACH on brokerage company's website? If you want to transfer $30,000 from megabank to brokerage, would you recommend doing it all at once or in ten $3,000 transfers?
I would do it all at once.
+1. I move funds all the time between brokers and banks and between banks (numerous times each month). Initiate on the brokers website if the bank will charge for the ACH (many of the larger brick and mortar banks do assess a fee - the main online banks tend not to). Otherwise you can initiate on the bank side (as a push). As someone else said, do it once so you know it works. You'll never think about it again.
Real Knowledge Comes Only From Experience
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