Schwab Information Thread with FAQ, Links, Tips and Q&A

[CuriousGeorgeTx]

Anyone have the debit card that comes with the schwab *brokerage* account?

If so, does that also refund all atm fees including foreign transaction fees and international atms? Essentially the same as the HY checking account?

We have had it for years. We have travelled all over the world (lived on 3 continents and have visited ~50 countries. Schwab ATM/debit card is great. Exchange rates are fair and they refund all fees. On rare occasions you have to help them understand what the total fees were, but in our experience, it has always been great.

[tj]

Anyone have the debit card that comes with the schwab *brokerage* account?

If so, does that also refund all atm fees including foreign transaction fees and international atms? Essentially the same as the HY checking account?

We have had it for years. We have travelled all over the world (lived on 3 continents and have visited ~50 countries. Schwab ATM/debit card is great. Exchange rates are fair and they refund all fees. On rare occasions you have to help them understand what the total fees were, but in our experience, it has always been great.

Why does everyone say to open the bank account for the ATM refunds if you can obtain the same refunds with the brokerage account? What if your brokerage account is invested in the money market fund? Will it auotmaitcally pull from there or do you need to sell it first and wait a day for it to clear?

[CuriousGeorgeTx]

Anyone have the debit card that comes with the schwab *brokerage* account?

If so, does that also refund all atm fees including foreign transaction fees and international atms? Essentially the same as the HY checking account?

We have had it for years. We have travelled all over the world (lived on 3 continents and have visited ~50 countries. Schwab ATM/debit card is great. Exchange rates are fair and they refund all fees. On rare occasions you have to help them understand what the total fees were, but in our experience, it has always been great.

Why does everyone say to open the bank account for the ATM refunds if you can obtain the same refunds with the brokerage account? What if your brokerage account is invested in the money market fund? Will it auotmaitcally pull from there or do you need to sell it first and wait a day for it to clear?

Not sure. To be clear, our card is linked to a Schwab Bank Checking account. I know they have a card that can be linked to a brokerage account, but I don’t know if it works the same.

Schwab is great about many things, but they are a nuisance with cash. Brokerage FDIC bank sweep pays very little interest. Same for checking account. You have to move it to a money fund in the brokerage account. It’s not a lot of money, but it is annoying and may eventually drive me elsewhere.

That said, I don’t keep more and a few $ in the Schwab Checking. When we travel internationally, I use Zelle to move cash from an online savings account to have cash for ATM withdrawals.

[VictorStarr]

Anyone have the debit card that comes with the schwab *brokerage* account?

If so, does that also refund all atm fees including foreign transaction fees and international atms? Essentially the same as the HY checking account?

We have had it for years. We have travelled all over the world (lived on 3 continents and have visited ~50 countries. Schwab ATM/debit card is great. Exchange rates are fair and they refund all fees. On rare occasions you have to help them understand what the total fees were, but in our experience, it has always been great.

Why does everyone say to open the bank account for the ATM refunds if you can obtain the same refunds with the brokerage account? What if your brokerage account is invested in the money market fund? Will it auotmaitcally pull from there or do you need to sell it first and wait a day for it to clear?

I am not sure why everybody says to open a Schwab checking account to get a debit card. It is possible to add a debit card to a standalone brokerage account. Here is a form to request checks and debit card:
https://client.schwab.com/secure/file/P ... 701-03.pdf

You have to manually sell money market funds to spend cash with a debit card.

Schwab Visa Debit card is issued and served by Charles Schwab bank. It is a flat “platinum” card with information on the back.

Schwab One Visa Debit card issued and served by BNY Mellon. It is an embossed white card that says "Schwab One Brokerage" on the front.

It seems that terms for brokerage (Schwab One) debit card are the same as for the bank debit card - "Charles Schwab & Co., Inc. Visa®Debit Card Agreement and Disclosure Statement".

Here is the Visa Platinum debit card agreement
https://client.schwab.com/secure/file/P-8727320

[Lastrun]

....

You have to manually sell money market funds to spend cash with a debit card.

....

Not at Schwab but am interested in possibly moving things there.

This is a question not a statement.

Are you sure about this?

From the Schwab One Account Agreement: https://www.schwab.com/legal/schwab-one ... -agreement

You may use the Visa® Debit Card and checks to pay for goods and services or to withdraw cash from your Schwab One® Account.

We will deduct check transactions from your Schwab One® Account in the following manner:

Charges will be made, first against the cash assets in your account, which may consist of a Free Credit Balance, deposits in the Bank Sweep feature, or shares of a Schwab® Sweep Money Fund or another Schwab Money Market Fund™; then
If the amount of the debit exceeds your cash assets, we will extend credit to you to the extent of the Available Margin Loan Value of your marginable securities.*

Later on:

12. Payment of Cash Transactions
Schwab One® cash transactions such as Visa® drafts, Electronic Fund Transfers and checks are processed according to Schwab's and its agents' authorization and banking procedures. Visa® drafts, Electronic Fund Transfers and ATM Withdrawals are paid and charged against the cash assets in your Schwab One® Account (which may be a Free Credit Balance, the proceeds of redemption of shares of a Schwab® Sweep Money Fund or another Schwab Money Market Fund™, or the proceeds of a withdrawal from the Bank Sweep feature). To the extent the debit exceeds your cash assets, we will extend credit to you up to the amount of your Available Margin Loan Value. Such margin loans will be subject to all terms contained in our Disclosure of Credit Terms and Policies.

This is not well-written in my opinion.

[jeffyscott]

^ I wonder if that is a recent change? (the document is dated April 2023)

I don't know how that worked for the brokerage account before, but for the linked checking account I believe that it used to indicate that only cash from the settlement account would transfer to the bank account for overdraft protection. So, they would not liquidate a purchased money fund.

I wonder if that has changed for the checking account? I can't find anything in the current disclosure that indicates what is available to automatically transfer to a linked Schwab checking account for overdraft protection. The checking account disclosure says:
Overdraft Protection:
This feature systematically transfers funds from your
Schwab One® account to your Investor
Checking account in order to provide you
with coverage against nonsufficient
funds in your Investor Checking account.
This feature is described in the “Schwab
One®/Investor Checking Linking
Authorization” (see Section 1.2).


But in this new version of the Schwab One account agreement, there are no section labels like "1.2" and a search for "checking" did not turn up the indicated section or anything else related to these transfers to checking.

[typical.investor]

^ I wonder if that is a recent change? (the document is dated April 2023)

I don't know how that worked for the brokerage account before, but for the linked checking account I believe that it used to indicate that only cash from the settlement account would transfer to the bank account for overdraft protection. So, they would not liquidate a purchased money fund.

I wonder if that has changed for the checking account? I can't find anything in the current disclosure that indicates what is available to automatically transfer to a linked Schwab checking account for overdraft protection. The checking account disclosure says:
Overdraft Protection:
This feature systematically transfers funds from your
Schwab One® account to your Investor
Checking account in order to provide you
with coverage against nonsufficient
funds in your Investor Checking account.
This feature is described in the “Schwab
One®/Investor Checking Linking
Authorization” (see Section 1.2).


But in this new version of the Schwab One account agreement, there are no section labels like "1.2" and a search for "checking" did not turn up the indicated section or anything else related to these transfers to checking.

No, there is no recent change. I contacted Schwab about it (easy to get an answer) and they said:

You'll need to manually place trades to make that cash available.

I pasted the account agreement into the chat and asked why there was that wording which stated "Electronic Fund Transfers and ATM Withdrawals are paid and charged against the cash assets in your Schwab One® Account (which may be a Free Credit Balance, the proceeds of redemption of shares of a Schwab® Sweep Money Fund or another Schwab Money Market Fund™, or the proceeds of a withdrawal from the Bank Sweep feature).
"
Schwab explained that the only exception for needed cash available is an old money market fund called Schwab Government Money. It isn't sold anymore so it's not possible to create a position in it. If you happen to have that, Schwab explained they will sell it for you to cover withdrawals when you don't have cash available, but that's the one exception.

[typical.investor]

....

You have to manually sell money market funds to spend cash with a debit card.

....

Not at Schwab but am interested in possibly moving things there.

This is a question not a statement.

Are you sure about this?

Yes. I am sure you need to liquidate the holdings yourself to have available cash unless you have margin enabled or still have shares of the one remaining sweep money fund (which is not available for new purchases).

From the Schwab One Account Agreement: https://www.schwab.com/legal/schwab-one ... -agreement

12. Payment of Cash Transactions
Schwab One® cash transactions such as Visa® drafts, Electronic Fund Transfers and checks are processed according to Schwab's and its agents' authorization and banking procedures. Visa® drafts, Electronic Fund Transfers and ATM Withdrawals are paid and charged against the cash assets in your Schwab One® Account (which may be a Free Credit Balance, the proceeds of redemption of shares of a Schwab® Sweep Money Fund or another Schwab Money Market Fund™, or the proceeds of a withdrawal from the Bank Sweep feature). To the extent the debit exceeds your cash assets, we will extend credit to you up to the amount of your Available Margin Loan Value. Such margin loans will be subject to all terms contained in our Disclosure of Credit Terms and Policies.

Only the Schwab Government Money (I believe it's the SWGXX) will be liquidated for you. It is not open to new investment, but if you happen to have it, Schwab will liquidate it as necessary to cover your cash needs.

[typical.investor]

Did anyone get the "Annual Reminder: Review the third parties you have authorized to access your Schwab financial account data"message from Schwab?

I was surprised because I didn't think I had anything linked.

(Schwab Web)-->Profile --> Security Settings --> Third-Party Access

Showed me oh yeah I allowed Turbo Tax to access it. It was easy to rescind that. I'll do so in the future just after importing tax info.

So my reminder is that Schwab protects against unauthorized access but if you allow someone access, then their actions won't be considered unauthorized. I assume this means if Turbo Tax gets compromised and my data used somehow to access Schwab that I'd be liable. Of course, it's surely a read only access but in case my account does get hacked, I think having no access given will shorten the investigation time.

[stuper1]

We are considering moving all of our investment accounts (joint taxable, IRAs, Roth IRAs) from Vanguard to Schwab, because Schwab has a local office. We like Vanguard's mutual fund offerings such as VBIAX, VTMFX, VWENX, etc., so we are hoping to qualify for transaction-fee Vanguard fund trades at Schwab.

What is the minimum transfer amount to Schwab that will qualify for free Vanguard fund trades?

Does this have to be in each account or across the total accounts?

And what about spouses? What if one spouse's accounts are more than the minimum, but one spouse's aren't?

And what about a joint account with both spouses on it that is below the minimum amount but one of the spouses has more than the minimum in say an IRA?

[Nate79]

We are considering moving all of our investment accounts (joint taxable, IRAs, Roth IRAs) from Vanguard to Schwab, because Schwab has a local office. We like Vanguard's mutual fund offerings such as VBIAX, VTMFX, VWENX, etc., so we are hoping to qualify for transaction-fee Vanguard fund trades at Schwab.

What is the minimum transfer amount to Schwab that will qualify for free Vanguard fund trades?

Does this have to be in each account or across the total accounts?

And what about spouses? What if one spouse's accounts are more than the minimum, but one spouse's aren't?

And what about a joint account with both spouses on it that is below the minimum amount but one of the spouses has more than the minimum in say an IRA?

I think you are going to have to call and ask them. The info about Vanguard fee wavers in this and other threads is outdated and seemed to have somewhat recently changed.

[jeffyscott]

^ Yep. Schwab has never revealed a specific amount for transaction fee waivers. I believe that some have reported being denied with assets that are greater than others who have gotten it. You'll just need to ask.

If you get it, it will be for all accounts in the household. Nearly all of our money is in IRAs, but our joint account still got a waiver even though it had less than $10K.

Not that it's directly related, but they did recently increase the minimum for assigning a dedicated financial consultant to $500K from $250K. And they've added tiers above that at I think $1 mil and $5 mil with some other benefits. None of the stated added benefits were about mutual fund transaction fees.

[VictorStarr]

We are considering moving all of our investment accounts (joint taxable, IRAs, Roth IRAs) from Vanguard to Schwab, because Schwab has a local office. We like Vanguard's mutual fund offerings such as VBIAX, VTMFX, VWENX, etc., so we are hoping to qualify for transaction-fee Vanguard fund trades at Schwab.

What is the minimum transfer amount to Schwab that will qualify for free Vanguard fund trades?

Does this have to be in each account or across the total accounts?

And what about spouses? What if one spouse's accounts are more than the minimum, but one spouse's aren't?

And what about a joint account with both spouses on it that is below the minimum amount but one of the spouses has more than the minimum in say an IRA?

I am not sure that there is a predefined asset level for transaction fee waivers. To the best of my knowledge you have to negotiate these waivers.

You wrote that you have a Schwab office nearby. I would recommend finding a financial consultant and having an in-person meeting with a consultant to negotiate transfer bonus and get a mutual funds transaction fee waiver (for three fund families).
Here is a page to find Schwab financial consultant: https://client.schwab.com/public/consultant/find

If I recall correctly, you need $250K or $500K to have an assigned financial consultant with Schwab. Schwab financial consultants play the role of point of contact and coordinator, there are no fees involved.

MF waiver is for all accounts of a household. In my case, my adult children's accounts are under the umbrella of my household and share the majority of benefits.

[evelynmanley]

I have an upcoming appointment with a rep from Schwab to discuss opening an account and transferring my Roth and SEP out of Vanguard. I'm trying to simplify all my accounts so that my kids have less to deal with when the time comes, and also because Schwab has an office in my town. I'm trying to decide between Fidelity or Schwab. Fidelity has an office 45 minutes away through usually heavy traffic, which I want to avoid, but there are issues about Schwab that concern me.

1. This office is a two-person office, with one man as the main rep. The rep I have been dealing with is not good about responding to my phone calls or emails on time. He takes two days. When I originally called the phone number of my town's rep, the line was busy, and the call was forwarded to the Schwab HQ. I told then I wanted to talk to my town's rep about setting up an appointment. They said that the rep for my town must have been on another line, so they would text him and let him know to call me back. He didn't call back for two days. Then he told me he was going on vacation for 3 weeks and we could meet then. When I sent an email after he got back from vacation, he didn't answer for two days. This seems absurd. Is this enough of a red flag to not open up an account with Schwab? I don't want my kids to go through this expeience in an emergency, and personally I don't want to go through this ever with a company that's holding my money.

2. I deal only in Treasuries at auction, about $300k total.The rest of my money ($150k) is in iBonds and HYSA/CD, and BOFA business checking (which I will slowly move to either Schwab or Fidelity). I understand that the sweep account at Schwab pays zip for interest and that when Treasuries mature, they go into this sweep account and are held there until the next auction, unless one buys into a MM fund or such. I've read that many people on this forum find this frustrating, and one Boglehead said it might drive him away from Schwab. Since I only deal in Treasuries, do you think this will drive me nuts?

3. Schwab can't transfer my HSA, which holds 25K. Since I really want to simplify all my accounts, would this be another reason to go with Fidelity over Schwab? I'm 69 and I plan to spend down the HSA so my kids aren't left with a taxable account, but putting it in Fidelity would be one less phone call and death certificate my kids would have to deal with. I could go half Fidelity, half Schwab, but that defeats the purpose of having just one actual office to go to.

4. I was told that Schwab doesn't help calculate RMD amounts, but Fidelity does. I do have an accountant, so do you think this should be a factor in choosing between Schwab and Fidelity?

Schwab is offering a $500 bonus for transferring my accounts from Vanguard, but really I don't care much about the bonus. I care about the issues listed above.

Thanks for your advice!

[tj]

I have an upcoming appointment with a rep from Schwab to discuss opening an account and transferring my Roth and SEP out of Vanguard. I'm trying to simplify all my accounts so that my kids have less to deal with when the time comes, and also because Schwab has an office in my town. I'm trying to decide between Fidelity or Schwab. Fidelity has an office 45 minutes away through usually heavy traffic, which I want to avoid, but there are issues about Schwab that concern me.

1. This office is a two-man office, with one man as the main rep. The rep I have been dealing with is not good about responding to my phone calls or emails on time. He takes two days. When I originally called the phone number of my town's rep, the line was busy, and the call was forwarded to the Schwab HQ. I told then I wanted to talk to my town's rep about setting up an appointment. They said that the rep for my town must have been on another line, so they would text him and let him know to call me back. He didn't call back for two days. Then he told me he was going on vacation for 3 weeks and we could meet then. When I sent an email after he got back from vacation, he didn't answer for two days. This seems absurd. Is this enough of a red flag to not open up an account with Schwab? I don't want my kids to go through this expeience in an emergency, and personally I don't want to go through this ever with a company that's holding my money.

2. I deal only in Treasuries at auction, about $300k total.The rest of my money ($150k) is in iBonds and HYSA/CD, and BOFA business checking (which I will slowly move to either Schwab or Fidelity). I understand that the sweep account at Schwab pays zip for interest and that when Treasuries mature, they go into this sweep account and are held there until the next auction, unless one buys into a MM fund or such. I've read that many people on this forum find this frustrating, and one Boglehead said it might drive him away from Schwab. Since I only deal in Treasuries, do you think this will drive me nuts?

3. Schwab can't transfer my HSA, which holds 25K. Since I really want to simplify all my accounts, would this be another reason to go with Fidelity over Schwab? I'm 69 and I plan to spend down the HSA so my kids aren't left with a taxable account, but putting it in Fidelity would be one less phone call and death certificate my kids would have to deal with. I could go half Fidelity, half Schwab, but that defeats the purpose of having just one actual office to go to.

4. I was told that Schwab doesn't help calculate RMD amounts, but Fidelity does. I do have an accountant, so do you think this should be a factor in choosing between Schwab and Fidelity?

Schwab is offering a $500 bonus for transferring my accounts from Vanguard, but really I don't care much about the bonus. I care about the issues listed above.

Thanks for your advice!

Why do you need a local Schwab person if the call center is very quick to answer and address?

[CuriousGeorgeTx]

2. I deal only in Treasuries at auction, about $300k total.The rest of my money ($150k) is in iBonds and HYSA/CD, and BOFA business checking (which I will slowly move to either Schwab or Fidelity). I understand that the sweep account at Schwab pays zip for interest and that when Treasuries mature, they go into this sweep account and are held there until the next auction, unless one buys into a MM fund or such. I've read that many people on this forum find this frustrating, and one Boglehead said it might drive him away from Schwab. Since I only deal in Treasuries, do you think this will drive me nuts?

It might. I have a Treasury Direct account which I generally use for Treasuries, but for my IRA, I go through Schwab and there are several things I don't like.
1) If you rollover a treasury in Schwab, unlike TD where a new treasury of the same face value is issued the day one matures, there is a week between maturity and the new issue. And the funds sit in the very low interest account and you can't move them out because it see that you have a pending purchase. I have do seen other state you can manually buy a new one for the date an old one matures, but I haven't done it and don't know if you get into any cash flow timing issues with Schwab.
2) Schwab's minimum is $1k vs TD $500
3) Schwab only does increments of $1k vs TD $100.
4) TD deposits funds for renewals and maturity early in the morning. Schwab it shows up in the account late in the day.

4. I was told that Schwab doesn't help calculate RMD amounts, but Fidelity does. I do have an accountant, so do you think this should be a factor in choosing between Schwab and Fidelity?

While I'm too young to have an RMD, my parents and my MIL had Schwab IRAs and Schwab calculated the RMDs. It would be printed on the December statement and is available on line. Schwab does not do RMDs for inherited IRA (at least for a non qualified heir).

We are mostly at Schwab. I have always received excellent service on the rare times I need it. DW & I have our TIRAs, RIRAs, trust brokerage, Donor Advised Fund and 529s for youngest child (still in grad school) and grandchildren. But Schwab's current approach to cash is disappointing and causing me to think about moving. It isn't that much money, but it seems like an unnecessary aggravation.

[evelynmanley]

I have an upcoming appointment with a rep from Schwab to discuss opening an account and transferring my Roth and SEP out of Vanguard. I'm trying to simplify all my accounts so that my kids have less to deal with when the time comes, and also because Schwab has an office in my town. I'm trying to decide between Fidelity or Schwab. Fidelity has an office 45 minutes away through usually heavy traffic, which I want to avoid, but there are issues about Schwab that concern me.

1. This office is a two-man office, with one man as the main rep. The rep I have been dealing with is not good about responding to my phone calls or emails on time. He takes two days. When I originally called the phone number of my town's rep, the line was busy, and the call was forwarded to the Schwab HQ. I told then I wanted to talk to my town's rep about setting up an appointment. They said that the rep for my town must have been on another line, so they would text him and let him know to call me back. He didn't call back for two days. Then he told me he was going on vacation for 3 weeks and we could meet then. When I sent an email after he got back from vacation, he didn't answer for two days. This seems absurd. Is this enough of a red flag to not open up an account with Schwab? I don't want my kids to go through this expeience in an emergency, and personally I don't want to go through this ever with a company that's holding my money.

2. I deal only in Treasuries at auction, about $300k total.The rest of my money ($150k) is in iBonds and HYSA/CD, and BOFA business checking (which I will slowly move to either Schwab or Fidelity). I understand that the sweep account at Schwab pays zip for interest and that when Treasuries mature, they go into this sweep account and are held there until the next auction, unless one buys into a MM fund or such. I've read that many people on this forum find this frustrating, and one Boglehead said it might drive him away from Schwab. Since I only deal in Treasuries, do you think this will drive me nuts?

3. Schwab can't transfer my HSA, which holds 25K. Since I really want to simplify all my accounts, would this be another reason to go with Fidelity over Schwab? I'm 69 and I plan to spend down the HSA so my kids aren't left with a taxable account, but putting it in Fidelity would be one less phone call and death certificate my kids would have to deal with. I could go half Fidelity, half Schwab, but that defeats the purpose of having just one actual office to go to.

4. I was told that Schwab doesn't help calculate RMD amounts, but Fidelity does. I do have an accountant, so do you think this should be a factor in choosing between Schwab and Fidelity?

Schwab is offering a $500 bonus for transferring my accounts from Vanguard, but really I don't care much about the bonus. I care about the issues listed above.

Thanks for your advice!

Why do you need a local Schwab person if the call center is very quick to answer and address?

Because I'm a boomer?! I'm more concerned that my kids have an actual person to talk to in an actual office, not an online bank or brokerage, when they need to act as POA or deal with the POD/TOD accounts. I've read on other Boglehead threads that Vanguard is not at all user-friendly with POA, and based on my experience, BOFA has to be the worst.

[aristotelian]

Anyone have the debit card that comes with the schwab *brokerage* account?

If so, does that also refund all atm fees including foreign transaction fees and international atms? Essentially the same as the HY checking account?

We have had it for years. We have travelled all over the world (lived on 3 continents and have visited ~50 countries. Schwab ATM/debit card is great. Exchange rates are fair and they refund all fees. On rare occasions you have to help them understand what the total fees were, but in our experience, it has always been great.

Why does everyone say to open the bank account for the ATM refunds if you can obtain the same refunds with the brokerage account? What if your brokerage account is invested in the money market fund? Will it auotmaitcally pull from there or do you need to sell it first and wait a day for it to clear?

I am not sure why everybody says to open a Schwab checking account to get a debit card. It is possible to add a debit card to a standalone brokerage account. Here is a form to request checks and debit card:
https://client.schwab.com/secure/file/P ... 701-03.pdf

You have to manually sell money market funds to spend cash with a debit card.

Schwab Visa Debit card is issued and served by Charles Schwab bank. It is a flat “platinum” card with information on the back.

Schwab One Visa Debit card issued and served by BNY Mellon. It is an embossed white card that says "Schwab One Brokerage" on the front.

It seems that terms for brokerage (Schwab One) debit card are the same as for the bank debit card - "Charles Schwab & Co., Inc. Visa®Debit Card Agreement and Disclosure Statement".

Here is the Visa Platinum debit card agreement
https://client.schwab.com/secure/file/P-8727320

That's interesting. When we opened our brokerage account, my recollection is that the checking account was mandatory in order to open a brokerage account. Since we had to have the.checking account and wanted the debit card I didn't even think to ask if we could have the card linked to the brokerage account.

[evelynmanley]

2. I deal only in Treasuries at auction, about $300k total.The rest of my money ($150k) is in iBonds and HYSA/CD, and BOFA business checking (which I will slowly move to either Schwab or Fidelity). I understand that the sweep account at Schwab pays zip for interest and that when Treasuries mature, they go into this sweep account and are held there until the next auction, unless one buys into a MM fund or such. I've read that many people on this forum find this frustrating, and one Boglehead said it might drive him away from Schwab. Since I only deal in Treasuries, do you think this will drive me nuts?

It might. I have a Treasury Direct account which I generally use for Treasuries, but for my IRA, I go through Schwab and there are several things I don't like.
1) If you rollover a treasury in Schwab, unlike TD where a new treasury of the same face value is issued the day one matures, there is a week between maturity and the new issue. And the funds sit in the very low interest account and you can't move them out because it see that you have a pending purchase. I have do seen other state you can manually buy a new one for the date an old one matures, but I haven't done it and don't know if you get into any cash flow timing issues with Schwab.
2) Schwab's minimum is $1k vs TD $500
3) Schwab only does increments of $1k vs TD $100.
4) TD deposits funds for renewals and maturity early in the morning. Schwab it shows up in the account late in the day.

4. I was told that Schwab doesn't help calculate RMD amounts, but Fidelity does. I do have an accountant, so do you think this should be a factor in choosing between Schwab and Fidelity?

While I'm too young to have an RMD, my parents and my MIL had Schwab IRAs and Schwab calculated the RMDs. It would be printed on the December statement and is available on line. Schwab does not do RMDs for inherited IRA (at least for a non qualified heir).

We are mostly at Schwab. I have always received excellent service on the rare times I need it. DW & I have our TIRAs, RIRAs, trust brokerage, Donor Advised Fund and 529s for youngest child (still in grad school) and grandchildren. But Schwab's current approach to cash is disappointing and causing me to think about moving. It isn't that much money, but it seems like an unnecessary aggravation.

Thank you for so much useful information. I think the situation re: Treasuries would be much more aggravation than I want to deal with.

[aristotelian]

We are considering moving all of our investment accounts (joint taxable, IRAs, Roth IRAs) from Vanguard to Schwab, because Schwab has a local office. We like Vanguard's mutual fund offerings such as VBIAX, VTMFX, VWENX, etc., so we are hoping to qualify for transaction-fee Vanguard fund trades at Schwab.

What is the minimum transfer amount to Schwab that will qualify for free Vanguard fund trades?

Does this have to be in each account or across the total accounts?

And what about spouses? What if one spouse's accounts are more than the minimum, but one spouse's aren't?

And what about a joint account with both spouses on it that is below the minimum amount but one of the spouses has more than the minimum in say an IRA?

Why don't you call Schwab? They have excellent customer service and will answer the phone faster than it would take someone to answer all these questions. I am not aware of any threshold to purchase vanguard funds.

[Nate79]

I have an upcoming appointment with a rep from Schwab to discuss opening an account and transferring my Roth and SEP out of Vanguard. I'm trying to simplify all my accounts so that my kids have less to deal with when the time comes, and also because Schwab has an office in my town. I'm trying to decide between Fidelity or Schwab. Fidelity has an office 45 minutes away through usually heavy traffic, which I want to avoid, but there are issues about Schwab that concern me.

1. This office is a two-man office, with one man as the main rep. The rep I have been dealing with is not good about responding to my phone calls or emails on time. He takes two days. When I originally called the phone number of my town's rep, the line was busy, and the call was forwarded to the Schwab HQ. I told then I wanted to talk to my town's rep about setting up an appointment. They said that the rep for my town must have been on another line, so they would text him and let him know to call me back. He didn't call back for two days. Then he told me he was going on vacation for 3 weeks and we could meet then. When I sent an email after he got back from vacation, he didn't answer for two days. This seems absurd. Is this enough of a red flag to not open up an account with Schwab? I don't want my kids to go through this expeience in an emergency, and personally I don't want to go through this ever with a company that's holding my money.

2. I deal only in Treasuries at auction, about $300k total.The rest of my money ($150k) is in iBonds and HYSA/CD, and BOFA business checking (which I will slowly move to either Schwab or Fidelity). I understand that the sweep account at Schwab pays zip for interest and that when Treasuries mature, they go into this sweep account and are held there until the next auction, unless one buys into a MM fund or such. I've read that many people on this forum find this frustrating, and one Boglehead said it might drive him away from Schwab. Since I only deal in Treasuries, do you think this will drive me nuts?

3. Schwab can't transfer my HSA, which holds 25K. Since I really want to simplify all my accounts, would this be another reason to go with Fidelity over Schwab? I'm 69 and I plan to spend down the HSA so my kids aren't left with a taxable account, but putting it in Fidelity would be one less phone call and death certificate my kids would have to deal with. I could go half Fidelity, half Schwab, but that defeats the purpose of having just one actual office to go to.

4. I was told that Schwab doesn't help calculate RMD amounts, but Fidelity does. I do have an accountant, so do you think this should be a factor in choosing between Schwab and Fidelity?

Schwab is offering a $500 bonus for transferring my accounts from Vanguard, but really I don't care much about the bonus. I care about the issues listed above.

Thanks for your advice!

Why the fascination with treasuries by auction only? Buying on the secondary market is so easy and much more straightforward than auction. And this is where Schwab really shines vs their competition.

For RMDs I believe what you are referring is that Schwab won't auto liquidate for RMDs but they do calculate it for you.

[tj]

I have an upcoming appointment with a rep from Schwab to discuss opening an account and transferring my Roth and SEP out of Vanguard. I'm trying to simplify all my accounts so that my kids have less to deal with when the time comes, and also because Schwab has an office in my town. I'm trying to decide between Fidelity or Schwab. Fidelity has an office 45 minutes away through usually heavy traffic, which I want to avoid, but there are issues about Schwab that concern me.

1. This office is a two-man office, with one man as the main rep. The rep I have been dealing with is not good about responding to my phone calls or emails on time. He takes two days. When I originally called the phone number of my town's rep, the line was busy, and the call was forwarded to the Schwab HQ. I told then I wanted to talk to my town's rep about setting up an appointment. They said that the rep for my town must have been on another line, so they would text him and let him know to call me back. He didn't call back for two days. Then he told me he was going on vacation for 3 weeks and we could meet then. When I sent an email after he got back from vacation, he didn't answer for two days. This seems absurd. Is this enough of a red flag to not open up an account with Schwab? I don't want my kids to go through this expeience in an emergency, and personally I don't want to go through this ever with a company that's holding my money.

2. I deal only in Treasuries at auction, about $300k total.The rest of my money ($150k) is in iBonds and HYSA/CD, and BOFA business checking (which I will slowly move to either Schwab or Fidelity). I understand that the sweep account at Schwab pays zip for interest and that when Treasuries mature, they go into this sweep account and are held there until the next auction, unless one buys into a MM fund or such. I've read that many people on this forum find this frustrating, and one Boglehead said it might drive him away from Schwab. Since I only deal in Treasuries, do you think this will drive me nuts?

3. Schwab can't transfer my HSA, which holds 25K. Since I really want to simplify all my accounts, would this be another reason to go with Fidelity over Schwab? I'm 69 and I plan to spend down the HSA so my kids aren't left with a taxable account, but putting it in Fidelity would be one less phone call and death certificate my kids would have to deal with. I could go half Fidelity, half Schwab, but that defeats the purpose of having just one actual office to go to.

4. I was told that Schwab doesn't help calculate RMD amounts, but Fidelity does. I do have an accountant, so do you think this should be a factor in choosing between Schwab and Fidelity?

Schwab is offering a $500 bonus for transferring my accounts from Vanguard, but really I don't care much about the bonus. I care about the issues listed above.

Thanks for your advice!

Why do you need a local Schwab person if the call center is very quick to answer and address?

Because I'm a boomer?! I'm more concerned that my kids have an actual person to talk to in an actual office, not an online bank or brokerage, when they need to act as POA or deal with the POD/TOD accounts. I've read on other Boglehead threads that Vanguard is not at all user-friendly with POA, and based on my experience, BOFA has to be the worst.

Schwab's competent customer service is what makes them stand out from vanguard, not a local sales person.

[jeffyscott]

I think the situation re: Treasuries would be much more aggravation than I want to deal with.

In case it's not clear, the week delay thing is only if you sign up for their auto roll service. My understanding is Vanguard doesn't offer auto roll at all, so it doesn't seem like there'd be any added aggravation vs. whatever you are doing now at Vanguard? (Unless what you do now leaves cash sitting in the settlement account, of course.)

However, if auto roll is the most important factor, then you probably want Fidelity.

[evelynmanley]

I think the situation re: Treasuries would be much more aggravation than I want to deal with.

In case it's not clear, the week delay thing is only if you sign up for their auto roll service. My understanding is Vanguard doesn't offer auto roll at all, so it doesn't seem like there'd be any added aggravation vs. whatever you are doing now at Vanguard? (Unless what you do now leaves cash sitting in the settlement account, of course.)

However, if auto roll is the most important factor, then you probably want Fidelity.

Thank you for that clarification. You are right, that wasn't clear to me; I didn't realize that issue only applies to auto roll. I do want to use auto roll in the future, however, so I'm very glad you've made this clear!

[evelynmanley]

I have an upcoming appointment with a rep from Schwab to discuss opening an account and transferring my Roth and SEP out of Vanguard. I'm trying to simplify all my accounts so that my kids have less to deal with when the time comes, and also because Schwab has an office in my town. I'm trying to decide between Fidelity or Schwab. Fidelity has an office 45 minutes away through usually heavy traffic, which I want to avoid, but there are issues about Schwab that concern me.

1. This office is a two-man office, with one man as the main rep. The rep I have been dealing with is not good about responding to my phone calls or emails on time. He takes two days. When I originally called the phone number of my town's rep, the line was busy, and the call was forwarded to the Schwab HQ. I told then I wanted to talk to my town's rep about setting up an appointment. They said that the rep for my town must have been on another line, so they would text him and let him know to call me back. He didn't call back for two days. Then he told me he was going on vacation for 3 weeks and we could meet then. When I sent an email after he got back from vacation, he didn't answer for two days. This seems absurd. Is this enough of a red flag to not open up an account with Schwab? I don't want my kids to go through this expeience in an emergency, and personally I don't want to go through this ever with a company that's holding my money.

2. I deal only in Treasuries at auction, about $300k total.The rest of my money ($150k) is in iBonds and HYSA/CD, and BOFA business checking (which I will slowly move to either Schwab or Fidelity). I understand that the sweep account at Schwab pays zip for interest and that when Treasuries mature, they go into this sweep account and are held there until the next auction, unless one buys into a MM fund or such. I've read that many people on this forum find this frustrating, and one Boglehead said it might drive him away from Schwab. Since I only deal in Treasuries, do you think this will drive me nuts?

3. Schwab can't transfer my HSA, which holds 25K. Since I really want to simplify all my accounts, would this be another reason to go with Fidelity over Schwab? I'm 69 and I plan to spend down the HSA so my kids aren't left with a taxable account, but putting it in Fidelity would be one less phone call and death certificate my kids would have to deal with. I could go half Fidelity, half Schwab, but that defeats the purpose of having just one actual office to go to.

4. I was told that Schwab doesn't help calculate RMD amounts, but Fidelity does. I do have an accountant, so do you think this should be a factor in choosing between Schwab and Fidelity?

Schwab is offering a $500 bonus for transferring my accounts from Vanguard, but really I don't care much about the bonus. I care about the issues listed above.

Thanks for your advice!

Why do you need a local Schwab person if the call center is very quick to answer and address?

Because I'm a boomer?! I'm more concerned that my kids have an actual person to talk to in an actual office, not an online bank or brokerage, when they need to act as POA or deal with the POD/TOD accounts. I've read on other Boglehead threads that Vanguard is not at all user-friendly with POA, and based on my experience, BOFA has to be the worst.

Schwab's competent customer service is what makes them stand out from vanguard, not a local sales person.

That's the reputation I heard about and one of the reasons I wanted to check Schwab out. But the rep's habit of not returning calls or emails for at least two days is not what I'd considered good customer service, and the fact that the office shuts down completely when he's on vacation for 3 weeks is not what I'm looking for if there's an emergency. It's just a one- or two-person office in my town.

[evelynmanley]

I have an upcoming appointment with a rep from Schwab to discuss opening an account and transferring my Roth and SEP out of Vanguard. I'm trying to simplify all my accounts so that my kids have less to deal with when the time comes, and also because Schwab has an office in my town. I'm trying to decide between Fidelity or Schwab. Fidelity has an office 45 minutes away through usually heavy traffic, which I want to avoid, but there are issues about Schwab that concern me.

1. This office is a two-man office, with one man as the main rep. The rep I have been dealing with is not good about responding to my phone calls or emails on time. He takes two days. When I originally called the phone number of my town's rep, the line was busy, and the call was forwarded to the Schwab HQ. I told then I wanted to talk to my town's rep about setting up an appointment. They said that the rep for my town must have been on another line, so they would text him and let him know to call me back. He didn't call back for two days. Then he told me he was going on vacation for 3 weeks and we could meet then. When I sent an email after he got back from vacation, he didn't answer for two days. This seems absurd. Is this enough of a red flag to not open up an account with Schwab? I don't want my kids to go through this expeience in an emergency, and personally I don't want to go through this ever with a company that's holding my money.

2. I deal only in Treasuries at auction, about $300k total.The rest of my money ($150k) is in iBonds and HYSA/CD, and BOFA business checking (which I will slowly move to either Schwab or Fidelity). I understand that the sweep account at Schwab pays zip for interest and that when Treasuries mature, they go into this sweep account and are held there until the next auction, unless one buys into a MM fund or such. I've read that many people on this forum find this frustrating, and one Boglehead said it might drive him away from Schwab. Since I only deal in Treasuries, do you think this will drive me nuts?

3. Schwab can't transfer my HSA, which holds 25K. Since I really want to simplify all my accounts, would this be another reason to go with Fidelity over Schwab? I'm 69 and I plan to spend down the HSA so my kids aren't left with a taxable account, but putting it in Fidelity would be one less phone call and death certificate my kids would have to deal with. I could go half Fidelity, half Schwab, but that defeats the purpose of having just one actual office to go to.

4. I was told that Schwab doesn't help calculate RMD amounts, but Fidelity does. I do have an accountant, so do you think this should be a factor in choosing between Schwab and Fidelity?

Schwab is offering a $500 bonus for transferring my accounts from Vanguard, but really I don't care much about the bonus. I care about the issues listed above.

Thanks for your advice!

Why the fascination with treasuries by auction only? Buying on the secondary market is so easy and much more straightforward than auction. And this is where Schwab really shines vs their competition.

For RMDs I believe what you are referring is that Schwab won't auto liquidate for RMDs but they do calculate it for you.

A fascination? It's a choice. This is the reason for my choice:

https://thefinancebuff.com/buy-treasury ... arket.html

<<When you buy Treasuries in a taxable account, buying them on the secondary market adds more complications to your taxes than buying new issues. You’ll need to know what to do with accrued interest and, if applicable, amortizable bond premium (see IRS Schedule B Instructions). They’re not impossible to deal with but it’s still extra work.

Selling Treasuries in a taxable account on the secondary market before they mature adds yet more complications to your taxes. If you must buy Treasuries on the secondary market in a taxable account, at least hold them to maturity and don’t sell them on the secondary market.<<

And this: viewtopic.php?p=7397751#p7397751

Thank you for the clarification re: RMDs at Schwab.

[VictorStarr]

...

I am not sure why everybody says to open a Schwab checking account to get a debit card. It is possible to add a debit card to a standalone brokerage account. Here is a form to request checks and debit card:
https://client.schwab.com/secure/file/P ... 701-03.pdf

You have to manually sell money market funds to spend cash with a debit card.

Schwab Visa Debit card is issued and served by Charles Schwab bank. It is a flat “platinum” card with information on the back.

Schwab One Visa Debit card issued and served by BNY Mellon. It is an embossed white card that says "Schwab One Brokerage" on the front.

It seems that terms for brokerage (Schwab One) debit card are the same as for the bank debit card - "Charles Schwab & Co., Inc. Visa®Debit Card Agreement and Disclosure Statement".

Here is the Visa Platinum debit card agreement
https://client.schwab.com/secure/file/P-8727320

That's interesting. When we opened our brokerage account, my recollection is that the checking account was mandatory in order to open a brokerage account. Since we had to have the.checking account and wanted the debit card I didn't even think to ask if we could have the card linked to the brokerage account.

It is the other way around. When you open a Schwab checking account you have to open a linked brokerage account and by default the checking account will overdraft from linked brokerage.

But you may open a standalone brokerage account. My primary brokerage account does not have a linked checking account.

[adave]

Schwab website is acting weird for me today. Basically keep switching back to grouped view despite me changing it under settings.

Lately, I have experience some IT issues with the website. For example, personal performance tab also messed up for me.

Perhaps this is due to integration with whatever they bought recently.

[VictorStarr]

I maintain brokerage accounts with Fidelity and Schwab. Fidelity has the Money Transfer Lockdown that prevents ACAT transfers from a Fidelity account but it does not prevent ACH pulls. Schwab does not have an ACAT lockdown feature. Today I learned that at Schwab ACH pulls from brokerage accounts are blocked by default. ACH pulls include ACH transfer initiated from external banks/brokerages and payments on external sites. No brokerage is perfect but we can choose one based on the feature set that is most important to us.

A few more details:
- For brokerages accounts with attached bank accounts "outgoing payments" are blocked by default (there is even no information about routing number for ACH debits).
- For standalone brokerage accounts the "outgoing payments'' are also blocked by default. You can enable outgoing payments by enabling check writing feature for a brokerage account.
- You can check settings for your brokerage accounts by navigating the menu: Move Money → Routing numbers and account information → select a brokerage account.

[MnD]

2. I understand that the sweep account at Schwab pays zip for interest and that when Treasuries mature, they go into this sweep account and are held there until the next auction, unless one buys into a MM fund or such. I've read that many people on this forum find this frustrating, and one Boglehead said it might drive him away from Schwab. Since I only deal in Treasuries, do you think this will drive me nuts?

I have a t-bill ladder at Schwab and roll over a 13 week or 26 week T-bill purchased at auction each month. The bills purchased at the Monday auction have a settlement date of Thursday. 13 and 26 weeks bills mature on Thursdays. So there is no lag or cash drag when rolling over, as long as you don't use "auto-roll" feature.

Placing the t-bill order manually once a month takes about 30 seconds and 5 mouse clicks. I have a recurring calendar entry to remind me to do this. One would have to decide personally if this is too much trouble or not.

[guppyguy]

2. I understand that the sweep account at Schwab pays zip for interest and that when Treasuries mature, they go into this sweep account and are held there until the next auction, unless one buys into a MM fund or such. I've read that many people on this forum find this frustrating, and one Boglehead said it might drive him away from Schwab. Since I only deal in Treasuries, do you think this will drive me nuts?

I have a t-bill ladder at Schwab and roll over a 13 week or 26 week T-bill purchased at auction each month. The bills purchased at the Monday auction have a settlement date of Thursday. 13 and 26 weeks bills mature on Thursdays. So there is no lag or cash drag when rolling over, as long as you don't use "auto-roll" feature.

Placing the t-bill order manually once a month takes about 30 seconds and 5 mouse clicks. I have a recurring calendar entry to remind me to do this. One would have to decide personally if this is too much trouble or not.

Just curious where you put leftover cash after purchasing at auction? Isn’t the min purchase amount 1K? Also how do you choose between the 13w and 26w?

[MnD]

2. I understand that the sweep account at Schwab pays zip for interest and that when Treasuries mature, they go into this sweep account and are held there until the next auction, unless one buys into a MM fund or such. I've read that many people on this forum find this frustrating, and one Boglehead said it might drive him away from Schwab. Since I only deal in Treasuries, do you think this will drive me nuts?

I have a t-bill ladder at Schwab and roll over a 13 week or 26 week T-bill purchased at auction each month. The bills purchased at the Monday auction have a settlement date of Thursday. 13 and 26 weeks bills mature on Thursdays. So there is no lag or cash drag when rolling over, as long as you don't use "auto-roll" feature.

Placing the t-bill order manually once a month takes about 30 seconds and 5 mouse clicks. I have a recurring calendar entry to remind me to do this. One would have to decide personally if this is too much trouble or not.

Just curious where you put leftover cash after purchasing at auction? Isn’t the min purchase amount 1K? Also how do you choose between the 13w and 26w?

The "last rung" of my ladder is the Schwab Prime Money Market Fund SWVXX and that also sops up the relatively small amount of extra cash that results from a maturity minus the the discounted cost of a new bill. Current yield 5.239%

13W or 26W is really just personal preference.
Until recently I had a 6 rung 26W ladder. I didn't need any more liquidity than that and the 26 week bills had a yield advantage.
Recently I've moved to a 3 rung 13 week ladder. A major planned purchase is getting closer and there currently isn't any meaningful yield advantage in going out to 26W.

[guppyguy]

2. I understand that the sweep account at Schwab pays zip for interest and that when Treasuries mature, they go into this sweep account and are held there until the next auction, unless one buys into a MM fund or such. I've read that many people on this forum find this frustrating, and one Boglehead said it might drive him away from Schwab. Since I only deal in Treasuries, do you think this will drive me nuts?

I have a t-bill ladder at Schwab and roll over a 13 week or 26 week T-bill purchased at auction each month. The bills purchased at the Monday auction have a settlement date of Thursday. 13 and 26 weeks bills mature on Thursdays. So there is no lag or cash drag when rolling over, as long as you don't use "auto-roll" feature.

Placing the t-bill order manually once a month takes about 30 seconds and 5 mouse clicks. I have a recurring calendar entry to remind me to do this. One would have to decide personally if this is too much trouble or not.

Just curious where you put leftover cash after purchasing at auction? Isn’t the min purchase amount 1K? Also how do you choose between the 13w and 26w?

The "last rung" of my ladder is the Schwab Prime Money Market Fund SWVXX and that also sops up the relatively small amount of extra cash that results from a maturity minus the the discounted cost of a new bill. Current yield 5.239%

13W or 26W is really just personal preference.
Until recently I had a 6 rung 26W ladder. I didn't need any more liquidity than that and the 26 week bills had a yield advantage.
Recently I've moved to a 3 rung 13 week ladder. A major planned purchase is getting closer and there currently isn't any meaningful yield advantage in going out to 26W.

Just curious, is your T-Bill ladder part of your 70/30 AA for rebalancing or is just budget expense planning/spillover/HYSA replacement?
Also, if it's not a part of your fixed income AA how did you come about the total amount invested? Specific dollar amount? % of income? etc etc

[adave]

I noticed today that my “portfolio performance “ page has been totally redone and looks nice now. It also allows for me to track the return of my entire created portfolio. Nice feature.

Unfortunately, it seems my returns have been basically flat over the last 2 years.