Vanguard now charging $10.00 wire fee

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Keepcalm
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Vanguard now charging $10.00 wire fee

Post by Keepcalm » Mon Mar 12, 2018 8:00 am

When you were in a time pinch and needed to wire funds from your VG account to a bank account you were able to wire free of charge.

Just got off the phone with VG and now unless your a flagship customer you are hit with a $10.00 fee (as of 2/15).

All good things come to an end?

Bummer.

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samsoes
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Re: Vanguard now charging $10.00 wire fee

Post by samsoes » Mon Mar 12, 2018 8:05 am

Free wire transfers are what compose all good things?
How often do you need to wire?
No need to be bummed.
Last edited by samsoes on Mon Mar 12, 2018 8:06 am, edited 1 time in total.
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Soon2BXProgrammer
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Re: Vanguard now charging $10.00 wire fee

Post by Soon2BXProgrammer » Mon Mar 12, 2018 8:05 am

if your in a pinch.. and can't wait the 3 days ish for ACH to settle... i wouldn't worry about the 10 dollar fee

Keepcalm
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Re: Vanguard now charging $10.00 wire fee

Post by Keepcalm » Mon Mar 12, 2018 8:08 am

I think it's an issue with principle, not so much how often one needs a wire.

When VG eventually implements other fee's that are foreign to their roots I will remember getting razzed over this. :wink:

Soon2BXProgrammer
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Re: Vanguard now charging $10.00 wire fee

Post by Soon2BXProgrammer » Mon Mar 12, 2018 8:13 am

some people might have been abusing it.. instead of using ACH..

a small fee of 10 dollars with still having a free option ACH... doesn't seem unreasonable.

if you need it, you would gladly pay the 10, but if you don't, then ACH works.

Broken Man 1999
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Re: Vanguard now charging $10.00 wire fee

Post by Broken Man 1999 » Mon Mar 12, 2018 8:58 am

My credit union, not known for high fees, charges $10 incoming wire, $25 outgoing wire, and $14.95 for incoming mortgage payoff.

At Vanguard, I have found that if I sell some of my federal money market, dollars are in my credit union account the next morning. I have been selling by noon, today I'm going to see if a 2:00 PM sell gets to my credit union by tomorrow morning.

Of course once I am conditioned to getting money the next day, I'll find that on the one time I HAD to have funds the next day I will receive them on Vanguard's written time interval! :oops:

At any rate, yeah, it is always a bummer when what was once free becomes a fee. After decades of free checking, my credit union is imposing a $4.95/month fee for basic checking. However, if one accepts online statements, and has a deposit of at least $500 each month, then the $4.95/month fee is waived. Since I do both, mine will still be free, for now.

Broken Man 1999
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greg24
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Re: Vanguard now charging $10.00 wire fee

Post by greg24 » Mon Mar 12, 2018 9:23 am

Soon2BXProgrammer wrote:
Mon Mar 12, 2018 8:13 am
a small fee of 10 dollars with still having a free option ACH... doesn't seem unreasonable.

if you need it, you would gladly pay the 10, but if you don't, then ACH works.
+1

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Clever_Username
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Re: Vanguard now charging $10.00 wire fee

Post by Clever_Username » Mon Mar 12, 2018 9:24 am

I just want to double check: when my taxable account distributions are sent to my checking account (not at Vanguard), this doesn't bring up a $10 charge, does it?

If it's just for people in a rush to get the money, I'm fine with that.
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Keepcalm
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Re: Vanguard now charging $10.00 wire fee

Post by Keepcalm » Mon Mar 12, 2018 9:27 am

Clever_Username wrote:
Mon Mar 12, 2018 9:24 am
I just want to double check: when my taxable account distributions are sent to my checking account (not at Vanguard), this doesn't bring up a $10 charge, does it?

If it's just for people in a rush to get the money, I'm fine with that.
Correct. Just wires.

Your ACH transfers are no charge.

aristotelian
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Re: Vanguard now charging $10.00 wire fee

Post by aristotelian » Mon Mar 12, 2018 9:27 am

Good. I would not want to subsidize other investors' wire transfers. If this is what they need to do to keep VTSAX at 0.04%, I am all for it.

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ruralavalon
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Re: Vanguard now charging $10.00 wire fee

Post by ruralavalon » Mon Mar 12, 2018 9:29 am

greg24 wrote:
Mon Mar 12, 2018 9:23 am
Soon2BXProgrammer wrote:
Mon Mar 12, 2018 8:13 am
a small fee of 10 dollars with still having a free option ACH... doesn't seem unreasonable.

if you need it, you would gladly pay the 10, but if you don't, then ACH works.
+1
ACH works fine for us, I can't remember the last time we needed a wire transfer.
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goingup
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Re: Vanguard now charging $10.00 wire fee

Post by goingup » Mon Mar 12, 2018 9:31 am

It is a bummer when something that was once free, is free no longer. I am kind of surprised that wire transfers were free, however. Every bank I've used charges for them.

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dm200
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Re: Vanguard now charging $10.00 wire fee

Post by dm200 » Mon Mar 12, 2018 9:36 am

Perhaps ACH transfers are happening more quickly now?

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goingup
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Re: Vanguard now charging $10.00 wire fee

Post by goingup » Mon Mar 12, 2018 9:37 am

It looks like a wire transfer is T+1 to your bank account. And an ACH is T+2 to your bank account. Not much difference until it's a big pinch.

jdb
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Re: Vanguard now charging $10.00 wire fee

Post by jdb » Mon Mar 12, 2018 9:47 am

I have been impressed with how fast the Vanguard ACH transfers work to my bank account in past six months, never more than 2 business days, sometimes just one business day. No need for wire transfers for this customer. Good luck.

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Re: Vanguard now charging $10.00 wire fee

Post by jebmke » Mon Mar 12, 2018 9:48 am

Soon2BXProgrammer wrote:
Mon Mar 12, 2018 8:05 am
if your in a pinch.. and can't wait the 3 days ish for ACH to settle... i wouldn't worry about the 10 dollar fee
My ACH transactions from Vanguard hit my bank within 24 hours.
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sperry8
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Re: Vanguard now charging $10.00 wire fee

Post by sperry8 » Mon Mar 12, 2018 10:06 am

I'm Flagship and still only ACH. I know wires generally cost money and since I never needed the money that fast, don't take advantage of this freebie. When we take advantage of something and a company sees it's costs rise, fees are likely to follow.
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Vanguard Fan 1367
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Re: Vanguard now charging $10.00 wire fee

Post by Vanguard Fan 1367 » Mon Mar 12, 2018 10:25 am

It is great to look at the fees and I really appreciate the situation at Vanguard with their overall fee structure. I feel bad for my friends who feel it necessary to buy funds with loads, funds with 1 percent or higher expense ratios, funds with high tax consequences, and 1 percent or higher assets management fees.

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dm200
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Re: Vanguard now charging $10.00 wire fee

Post by dm200 » Mon Mar 12, 2018 10:40 am

jebmke wrote:
Mon Mar 12, 2018 9:48 am
Soon2BXProgrammer wrote:
Mon Mar 12, 2018 8:05 am
if your in a pinch.. and can't wait the 3 days ish for ACH to settle... i wouldn't worry about the 10 dollar fee
My ACH transactions from Vanguard hit my bank within 24 hours.
That is my experience (for an organization I manage part time) as well

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Re: Vanguard now charging $10.00 wire fee

Post by triceratop » Mon Mar 12, 2018 10:45 am

aristotelian wrote:
Mon Mar 12, 2018 9:27 am
Good. I would not want to subsidize other investors' wire transfers. If this is what they need to do to keep VTSAX at 0.04%, I am all for it.
The two are likely unrelated.
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onourway
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Re: Vanguard now charging $10.00 wire fee

Post by onourway » Mon Mar 12, 2018 10:46 am

Understand the point about any new fees, but the number of times in my life that neither a 2 day wait for ACH or a Vanguard check or a credit card won't cover things in just about zero.

aristotelian
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Re: Vanguard now charging $10.00 wire fee

Post by aristotelian » Mon Mar 12, 2018 10:53 am

Vanguard Fan 1367 wrote:
Mon Mar 12, 2018 10:25 am
It is great to look at the fees and I really appreciate the situation at Vanguard with their overall fee structure. I feel bad for my friends who feel it necessary to buy funds with loads, funds with 1 percent or higher expense ratios, funds with high tax consequences, and 1 percent or higher assets management fees.
Don't feel bad. They are making a choice to attempt to "beat the market" by more than the fees they are paying.

inbox788
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Re: Vanguard now charging $10.00 wire fee

Post by inbox788 » Mon Mar 12, 2018 12:06 pm

Soon2BXProgrammer wrote:
Mon Mar 12, 2018 8:05 am
if your in a pinch.. and can't wait the 3 days ish for ACH to settle... i wouldn't worry about the 10 dollar fee
FYI, 3 days float on 100k at 1% is about $10.

stocknoob4111
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Re: Vanguard now charging $10.00 wire fee

Post by stocknoob4111 » Mon Mar 12, 2018 12:08 pm

I don't think i've ever wired money in my life, I just use ACH so not an issue for me.

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greg24
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Re: Vanguard now charging $10.00 wire fee

Post by greg24 » Mon Mar 12, 2018 1:30 pm

jebmke wrote:
Mon Mar 12, 2018 9:48 am
My ACH transactions from Vanguard hit my bank within 24 hours.
In my limited experience, this is usually true for me as well. Occasionally 2 days. I don't think I've ever had to wait 3?

MFInvestor
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Re: Vanguard now charging $10.00 wire fee

Post by MFInvestor » Mon Mar 12, 2018 2:17 pm

The following is from the prospectus supplement outlining this new policy:

Flagship and Brokerage accounts are exempt from the new $10 fee. (See prospectus supplement below).

Vanguard is migrating all accounts to their Brokerage system.

If you have a Brokerage account and have $10,000 in it as an example, you would be exempt from the $10 fee whereas a Flagship account requires a minimum of $1,000,000.

To avoid the wire fee(if it concerns you)-transition your account to a brokerage account if you already haven't done so.


Vanguard Funds

Supplement to the Prospectus

Important Information Regarding Wire Redemptions

Effective February 15, 2018, Vanguard will impose a $10 wire fee on outgoing wire redemptions from retirement and nonretirement accounts. The fee will be assessed in addition to, rather than being withheld from, redemption proceeds and will be paid directly to the fund. For example, if you were to redeem $100 via a wire, you will receive the full $100, and your fund account will also be assessed the $10 fee by redeeming additional fund shares. If you redeem your entire fund account, your redemption proceeds will be reduced by the fee amount. The wire fee will not apply to accounts held by Flagship and Flagship Select clients; accounts held through intermediaries, including Vanguard Brokerage Services; or accounts held by institutional clients.

Bfwolf
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Re: Vanguard now charging $10.00 wire fee

Post by Bfwolf » Mon Mar 12, 2018 5:02 pm

I had to make a few wires to my safari operator in the last year for my trip to Africa. I used Vanguard, and it was easy and free. I didn't even get charged by the correspondent bank...not sure if Vanguard was covering those fees for me? I did get charged a fee once when my safari operator's correspondent bank changed and they didn't tell me, so the wire had to be returned to my account...the incorrect correspondent bank that I tried to use charged a $30 fee.

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Re: Vanguard now charging $10.00 wire fee

Post by nisiprius » Mon Mar 12, 2018 5:54 pm

Planet Money had an interesting episode about why on earth an ACH transfer takes so long:

https://www.npr.org/sections/money/2013 ... ur-economy
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MrPotatoHead
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Re: Vanguard now charging $10.00 wire fee

Post by MrPotatoHead » Mon Mar 12, 2018 6:33 pm

Broken Man 1999 wrote:
Mon Mar 12, 2018 8:58 am
At any rate, yeah, it is always a bummer when what was once free becomes a fee. After decades of free checking, my credit union is imposing a $4.95/month fee for basic checking. However, if one accepts online statements, and has a deposit of at least $500 each month, then the $4.95/month fee is waived. Since I do both, mine will still be free, for now.

Broken Man 1999
Fido and Schwab offer excellent free checking services. Just sayin'.

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ruralavalon
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Re: Vanguard now charging $10.00 wire fee

Post by ruralavalon » Tue Mar 13, 2018 8:17 am

MrPotatoHead wrote:
Mon Mar 12, 2018 6:33 pm
Broken Man 1999 wrote:
Mon Mar 12, 2018 8:58 am
At any rate, yeah, it is always a bummer when what was once free becomes a fee. After decades of free checking, my credit union is imposing a $4.95/month fee for basic checking. However, if one accepts online statements, and has a deposit of at least $500 each month, then the $4.95/month fee is waived. Since I do both, mine will still be free, for now.

Broken Man 1999
Fido and Schwab offer excellent free checking services. Just sayin'.
The brick and mortar bank we use has free checking, a local branch very near our home, free notary service and provides a free medallion signature guarantee if we ever need that again.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

UpperNwGuy
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Re: Vanguard now charging $10.00 wire fee

Post by UpperNwGuy » Tue Mar 13, 2018 8:47 am

stocknoob4111 wrote:
Mon Mar 12, 2018 12:08 pm
I don't think i've ever wired money in my life, I just use ACH so not an issue for me.
+1

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dm200
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Re: Vanguard now charging $10.00 wire fee

Post by dm200 » Tue Mar 13, 2018 9:49 am

One, possible, factor with ACH vs wire is that there is a risk (to the destination institution) that the ACH can be reversed, while that is not possible with a wire.

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goingup
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Re: Vanguard now charging $10.00 wire fee

Post by goingup » Tue Mar 13, 2018 10:01 am

MFInvestor wrote:
Mon Mar 12, 2018 2:17 pm
The following is from the prospectus supplement outlining this new policy:

Flagship and Brokerage accounts are exempt from the new $10 fee. (See prospectus supplement below).

Vanguard is migrating all accounts to their Brokerage system.

If you have a Brokerage account and have $10,000 in it as an example, you would be exempt from the $10 fee whereas a Flagship account requires a minimum of $1,000,000.

To avoid the wire fee(if it concerns you)-transition your account to a brokerage account if you already haven't done so.


Vanguard Funds

Supplement to the Prospectus

Important Information Regarding Wire Redemptions

Effective February 15, 2018, Vanguard will impose a $10 wire fee on outgoing wire redemptions from retirement and nonretirement accounts. The fee will be assessed in addition to, rather than being withheld from, redemption proceeds and will be paid directly to the fund. For example, if you were to redeem $100 via a wire, you will receive the full $100, and your fund account will also be assessed the $10 fee by redeeming additional fund shares. If you redeem your entire fund account, your redemption proceeds will be reduced by the fee amount. The wire fee will not apply to accounts held by Flagship and Flagship Select clients; accounts held through intermediaries, including Vanguard Brokerage Services; or accounts held by institutional clients.
MFInvestor-
This is what I see on the Vanguard site regarding wire fees:

Vanguard Brokerage charges a $10 wire fee for each holding you are redeeming from. The fee is not charged to Flagship and Flagship Select clients. Your bank may also charge a fee to receive or accept a wire. We don't charge a fee for electronic bank transfers.

Broken Man 1999
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Re: Vanguard now charging $10.00 wire fee

Post by Broken Man 1999 » Tue Mar 13, 2018 2:48 pm

MrPotatoHead wrote:
Mon Mar 12, 2018 6:33 pm
Broken Man 1999 wrote:
Mon Mar 12, 2018 8:58 am
At any rate, yeah, it is always a bummer when what was once free becomes a fee. After decades of free checking, my credit union is imposing a $4.95/month fee for basic checking. However, if one accepts online statements, and has a deposit of at least $500 each month, then the $4.95/month fee is waived. Since I do both, mine will still be free, for now.

Broken Man 1999
Fido and Schwab offer excellent free checking services. Just sayin'.
I'm fine for now. Already meet two requirements that can offset the fee. I have had electronic statements for years, and have had way more than $500 in monthly deposits from SS since 1999.

And, I have two credit unions nearby I can easily join, one at my alma mater, both with safe deposit boxes, a service my current CU doesn't have at the branch nearest me. $4.95/month isn't bad, but free is better, so long as the free services are covering my very basic needs.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

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