I’m doing an ACATS transfer of an IRA from one brokerage firm (Sending Firm) to another (Receiving Firm). It appears that the cash and securities were removed from the sending account yesterday but won’t show up at the receiving firm until Tuesday or Wednesday of next week (due to the thanksgiving holiday, I’m told).
Who earns the interest on my cash for the 6-7 days that it is in electronic limbo? It could be the sending firm, the receiving firm, or the intermediary depositary.
Who earns interest on cash in ACATS limbo?
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toddthebod
- Posts: 8194
- Joined: Wed May 18, 2022 12:42 pm
Re: Who earns interest on cash in ACATS limbo?
For most of that time period the assets are still held at the original firm while various checks are performed.
Re: Who earns interest on cash in ACATS limbo?
We recently did a gift transfer from a Schwab account to the recipients account at Fidelity. For what its worth in our case the transfer out from Schwab and receipt in at Fidelity were effective the same day. On some types of actions the online screens you see may not be truly reflective of the actual status of the account. Some actions may involve background activity that posts to the online screen on a delayed basis, though the actual date of the activity should post eventually in the account history.
The closest helping hand is at the end of your own arm.
Re: Who earns interest on cash in ACATS limbo?
Can't say for all brokerages but when I've done ACATS pulls from Fidelity, the cash was there until the day it appeared at the destination. The Activity tab of the website showed the transaction pending but Positions showed the money still in the core MMF position with transfer out as a pending amount.
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JustGotScammed
- Posts: 325
- Joined: Fri Jun 09, 2017 10:16 pm
Re: Who earns interest on cash in ACATS limbo?
The interest is earned by the Sending Firm until a given asset is transferred to the Receiving Firm.lhl12 wrote: ↑Thu Nov 28, 2024 9:45 pm I’m doing an ACATS transfer of an IRA from one brokerage firm (Sending Firm) to another (Receiving Firm). It appears that the cash and securities were removed from the sending account yesterday but won’t show up at the receiving firm until Tuesday or Wednesday of next week (due to the thanksgiving holiday, I’m told).
Who earns the interest on my cash for the 6-7 days that it is in electronic limbo? It could be the sending firm, the receiving firm, or the intermediary depositary.