Schwab charged margin interest on ETF->MF exchange

[beyou]

This problem will be going away next year in May 2024

All stock and ETF trades in the US and many other countries will move from T+2 to T+1 settlement, putting them
in the same timeframe as a mutual fund settlement. Then in theory there is no mismatch in funds availability when you sell an ETF,
it will be available next day to pay for the mutual fund.

https://www.sec.gov/news/press-release/2023-29

In the mean time I moved from an all mutual fund to all ETF portfolio over the last couple of years.
I find it convenient to have all ETF, both due to this settlement issue and also for ability to compare apples to apples
when doing rebalancing (seeing all my holdings as of the same point in time, not some intraday and some end of prior date in market values).
Not huge issues, but today there are so many ETFs and many with even lower fees than mutual funds, not sure why not take advantage of such
minor conveniences. Next year one of the conveniences goes away, but not the others.

[ny10036]

And I still don't understand why you haven't asked Schwab to convert your account into a cash account. Why are you hanging on to a margin account if you are "never going to use margin?"

I just did. The additional impetus was how overdraft protection can combine with margin accounts to produce this nightmare scenario: viewtopic.php?t=416672

Originally, I thought of margin as a useful feature that could come in handy as long as you wield it wisely. I'm now encountering edge cases that can blow up on you even if you're a sober investor who does not YOLO. Like fraud, or a mismatch in settlement times between MF and ETFs.