How Do You Transfer Larger Amount Funds Between Institutions?

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PGR
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How Do You Transfer Larger Amount Funds Between Institutions?

Post by PGR »

Use case - assembling a larger amount of money like 6 figures from multiple sources and delivering to a lending institution for a house down payment...

I found out some banks when originating online electronic funds transfers - only allow $5k to/from other institutions for which have been previously 'linked' to the account. The only real option for larger amounts would be a 'wire' transfer with a fee, forms, etc.

By comparison - it appears from a Vanguard brokerage act via their EBT feature (electronic bank transfer), they don't impose such a limit and one can push/pull much larger (6-figures?) amounts to/from a linked bank account elsewhere.

In the use case of say assembling a large sum for a down payment on a home at some lender's institution, the issue arises as to an efficient and safe method for assembling and delivering funds to a lender bank institution. Seems a VG brokerage account as the central 'hub' to accumulate for various other accounts and then delivering to a linked lender institution might be a good solution...

Maybe some banks don't impose limits like the $5k I've encountered.

Maybe wires are OK but in my case it would be multiple wires each with paperwork and fees? There's also good old fashioned checks via registered mail.

OTOH Probably should be some concern about making these things 'too easy' from a defensive/security standpoint...

Curious how others approach transferring larger sums across differing institutions...
Faith20879
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by Faith20879 »

PGR wrote: Thu Jul 01, 2021 3:52 pm
Maybe wires are OK but in my case it would be multiple wires each with paperwork and fees? There's also good old fashioned checks via registered mail.
You may want to check with you banks. Some of our banks do not have a wiring charge, in or out.

Last time when we did this, we wrote a check from each incoming account, deposited to the destination account, waited a few days, then wrote a check from that account to the agent. Not elegant but it worked.
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goingup
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by goingup »

If I had multiple sources (different brokerages) I would ACH what I needed to my checking account. I would have all the money gathered and in place at least a week in advance of when I needed it. (Things can go wrong.) Then I would wire from my bank to the lending institution.
nordsteve
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by nordsteve »

I recently closed on a house sale, and in chatting with the closer found out that they are no longer accepting incoming wires from buyers. A couple of their buyers had their down payments stolen by fraudsters pretending to be the closing company.

Given what I heard, I'd be getting a cashier's check and physically delivering it to the closing company for future transactions.
mrb09
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by mrb09 »

goingup wrote: Thu Jul 01, 2021 5:12 pm If I had multiple sources (different brokerages) I would ACH what I needed to my checking account. I would have all the money gathered and in place at least a week in advance of when I needed it. (Things can go wrong.) Then I would wire from my bank to the lending institution.
+1. When we did our last house down payment, I transferred in some Fidelity money weeks ahead of time to my Ally savings account. This was an ACH transfer with a $100k limit and no fee (I made it just barely with a single transfer). When we did the transfer for the down payment itself, the instructions were for wire transfer, not ACH. Ally charged for the wire transfer. I don't know if there was a limit there or not, if there was it was much higher than I needed.
seawolf21
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by seawolf21 »

How much lead time and what amounts are we talking about?

Spread the ACH transfers out or just write a check from one account to another.

Some data points:
Fidelity ACH out is actually same day at end of day. Say if you transfer out of Fido at 10AM Eastern, it shows up at receiving bank before 5 and 6PM. Then again Fido wires are free.
RetiredAL
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by RetiredAL »

I have moved large amounts, greater than $100K, thru Wells Fargo with no issues. ACH push from 1st into Wells, then an ACH pull by 2nd.

These were long established (years) transfer points. #1 required me to call since it was greater than the $50K they allowed via online. It sat 2 or 3 days in Wells as I wanted everything to clear/complete. Pull by #2 was done via online. #2 would have allowed a trade immediately . I waited 2 days to use the $. I don't don't believe in pushing the transfer envelope.

18 month's ago, son bought a house. He sent all the funds to Wells Fargo and on the day of close got a cashier's check and hand delivered it to the Title Company.
AlohaJoe
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by AlohaJoe »

PGR wrote: Thu Jul 01, 2021 3:52 pm
I found out some banks when originating online electronic funds transfers - only allow $5k to/from other institutions for which have been previously 'linked' to the account. The only real option for larger amounts would be a 'wire' transfer with a fee, forms, etc.
Is that actually what your bank told you when you called them and asked? Every bank I've ever worked with had a way to temporarily raise the limit to allow large transfers when I called and spoke to a customer service agent. Though I admit I've only worked with a few banks so I suppose there are some that won't do that.
Money Market
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by Money Market »

I just write a check. It never fails.
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Kookaburra
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by Kookaburra »

Does Fidelity have an outbound wire limit?
Opinika
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by Opinika »

I believe Fidelity's outbound limit is $100,000/day.

As I recall, their instructions say to speak with someone for larger amounts.
stan1
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by stan1 »

goingup wrote: Thu Jul 01, 2021 5:12 pm If I had multiple sources (different brokerages) I would ACH what I needed to my checking account. I would have all the money gathered and in place at least a week in advance of when I needed it. (Things can go wrong.) Then I would wire from my bank to the lending institution.
Personally I would give it MORE than one week.

The people buying my mom's house triggered Patriot Act scrutiny when moving cash due to his name. His name was a common name (such as John Smith). He was a Vietnam vet. He was VERY unhappy. Delayed closing by two days while the powers that be went through the process to figure out he wasn't the John Smith they were interested in.
desconhecido
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by desconhecido »

We were scheduled to close on purchase on Apr 12. exact amount unknown, but were confidant we could close on Apr 30 if all the little details could be attended to. Transferred $190k from Vanguard brokerage to Chase checking (ACH I assume) on Mar 24. On Apr 29 went to Chase for a Cashier's check in the final settlement amount. Closed Ap3 30, not a problem.

My experience with ACH transfers among USAA, Vanguard, Schwab and Chase has been trouble free. Last july, transferred $380k from Schwab to Vanguard via USAA in $25k to $50k chunks with no problem.
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theduke
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by theduke »

Did you go the bank and ask? Online my bank has limits, but I went in and had them transfer funds for a closing.
Scotttheking
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by Scotttheking »

Opinika wrote: Fri Jul 02, 2021 11:51 am I believe Fidelity's outbound limit is $100,000/day.

As I recall, their instructions say to speak with someone for larger amounts.
100k online, higher via phone for Fido.

When closing, settlement company had me call and verify the wire instructions before sending to avoid fraud.
oyster99
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by oyster99 »

nordsteve wrote: Thu Jul 01, 2021 5:15 pm I recently closed on a house sale, and in chatting with the closer found out that they are no longer accepting incoming wires from buyers. A couple of their buyers had their down payments stolen by fraudsters pretending to be the closing company.
How come wire transfers don't do the initial few cents trial deposit like they do when you set up ACH transfers? I'm not exactly sure how fraudsters pretended to be the title company, but wouldn't a mutual, up-front trial wire transfer of a few pennies, confirmed by each side, make it so this sort of fraud can't happen?

How would this type of fraud work?
Can random people create transient routing numbers for wire transfers, or is there a registry of validated wire transfer routing numbers?
MrJedi
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by MrJedi »

I've noticed traditional B&M banks and credit unions often have small daily ACH limits when you initiate on their side, like 5-20k.

Online banks like Ally, Discover, etc. seem to let you do much more, like 100k. Note that if you initiate from the side with the higher limit, you can get around the smaller limit. Those limits are for the initiating institution.

Also as noted, brokers like Fidelity seem to have much higher limits as well. Fidelity ACH is very fast in my experience, posting either same day or next morning.
runninginvestor
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by runninginvestor »

When I asked VG, they said they would transfer up to $10million (!) by EBT. My regional bank had no limit for incoming by EBT (Fifth Third). A limit of $5k seems very low, but I think is probably just the funds availability hold. Here's a good summary of reg cc:
https://www.forbes.com/advisor/banking/ ... k-account/

I don't think they can hold above $5k for electronic transfers or cash, so some banks might just put a restriction on it above that limit for those limits to protect themselves.
123
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by 123 »

Paper checks sent through regular US mail still work very well for us. You've got to plan ahead a bit to allow for mail time and check clearing but it's a simple one-and-done for each account involved. Wires and/or multiple ACH (due to transaction limits) sometimes involve tedious procedures.
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nordsteve
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Re: How Do You Transfer Larger Amount Funds Between Institutions?

Post by nordsteve »

oyster99 wrote: Wed Jul 21, 2021 10:04 am
nordsteve wrote: Thu Jul 01, 2021 5:15 pm I recently closed on a house sale, and in chatting with the closer found out that they are no longer accepting incoming wires from buyers. A couple of their buyers had their down payments stolen by fraudsters pretending to be the closing company.
How come wire transfers don't do the initial few cents trial deposit like they do when you set up ACH transfers? I'm not exactly sure how fraudsters pretended to be the title company, but wouldn't a mutual, up-front trial wire transfer of a few pennies, confirmed by each side, make it so this sort of fraud can't happen?

How would this type of fraud work?
Can random people create transient routing numbers for wire transfers, or is there a registry of validated wire transfer routing numbers?
1. Select a bank account to use
2. Acquire contact info of sellers
3. Contact sellers pretending to be the closing company, and send them the fake account information.
4. Wait for money to show up in account
5. Wire transfers are generally available immediately, so go to bank and get the money

Given the size of the payoff, it doesn't have to work very often to be lucrative. I'm deliberately vague about how a couple of the steps work.
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