Deposits and withdrawals from a local bank account are easy – you can go to an ATM, write a check, or stop in a branch office.  But how do you handle money movement in your investment accounts?  We wanted to give you a quick primer on the best ways to make deposits and withdrawals at Schwab including some our favorite tools such as mobile deposits and electronic transfers.  Your needs may vary, so feel free to call us for our take on the best options for you and your circumstances.

Deposits:

• With the advent of the Schwab Mobile app, it is now very easy to make deposits to Schwab with a tap of your phone. Go to the app store on your phone and search for the Schwab Mobile app to download.  Log in to your Schwab account from this app, select deposit, and follow the prompts.  A quick photo of the front and back of the check, click submit and you are done.  Most accounts – including IRA’s, joint tenants, and individual accounts – are eligible for mobile deposit but qualified accounts like 401(k)’s or SIMPLE’s are not.  Schwab limits the use to deposits of $25,000 or less.

• If you are making regular or frequent deposits to your Schwab accounts, we recommend using MoneyLink. MoneyLink establishes an electronic connection between your investment accounts and your checking or savings accounts at other financial institutions like your bank or credit union.  Many clients use this method to systematically fund their IRAs (for example by depositing $500/month) or simply to have the ability to make deposits quickly and easily on an ad hoc basis when they have extra cash.

• Not sure about going mobile or using electronic transfers? The mail still works!  If sending via regular mail, the address is:

Charles Schwab & Co., INC
P.O. Box 628290
Orlando, Florida 32862-8290

• • This would be the preferred method for deposits to a SEP-IRA, SIMPLE IRA or Individual 401(k) which cannot be sent via mobile app.
  • For any checks over $25,000 we recommend overnight mail for security and tracking ability. The address is:

Charles Schwab & Co., INC
1958 Summit Park Drive, STE 500
Orlando, Florida 32810

• • Checks should be made payable to you as the account holder, or alternatively to Charles Schwab. Be sure to include your account number on the check in remittance advice and any transmittal instructions.

• When depositing proceeds from the sale of house or other very large deposits, wire transfers are your best bet. The transferring bank will charge a fee for the wire (typically about $25.00) but the access to the funds is much quicker than other methods.  You will need to provide the outgoing financial institution with the following information:

Bank: Citibank N.A., New York
Routing number: 021000089
FBO: Charles Schwab & Co., Inc.
Account number: 4055-3953
Bank address: 399 Park Avenue, New York, NY 10022
For further credit to: the eight-digit account number and name(s) listed on the Schwab account

• • Be vigilant about the dangers of wire transfers in today’s environment. It is best to give information about wires verbally and/or in person.

• No matter how you decide to make your deposit alerting us in advance is best practice so that we can monitor it. We see deposits daily from Schwab and can watch inter-day activity when needed.

Withdrawals

• Our preferred method to move money from your Schwab account to another financial institution is electronically via MoneyLink. We can easily set this up to “connect” your Schwab account to your checking account at your bank or credit union.  Once established the funds can be moved by you (or by us if you so desire) on either a manual or automatic basis. The initial set up takes about 3-5 days.  There is no cost to you and the money is available the next business day. Many retired clients who are in the distribution phase use MoneyLink to establish monthly withdrawals from their accounts and a reliable stream of income.  We monitor the cash levels of our clients who use this function carefully to make sure that there is enough cash for their needs.

• You can get checks and/or debit cards for your taxable investment accounts and access funds as needed. Be sure to check your balance and let us know before withdrawing large amounts to avoid any cash shortfalls.  If check writing is only a very occasional need, Schwab can also mail you a check.  The cost to overnight a check is $15.00.  Requests should be submitted before 2:00 pm (EST) to be processed the same day.

• When you need to move funds the same day the best method is wire transfer. All wire transfer requests must be confirmed verbally for security reasons and we will need the following information from the receiving financial institution to complete the paperwork:
  • ABA Number
  • Bank Name, Address and Phone
  • Beneficiary Account #
  • Beneficiary Name and Address
  • Amount of the wire

Clients who have access to Schwab Alliance (www.schwaballiance.com) can approve wire transfers via electronic signature, otherwise a physical signature is required.  The cost is $25.00 per wire.  Deadline for processing is 2:30 pm (EST) for physical signature and 4:30 pm (EST) for electronic authorization.

Note: Your investments are marketable, but the sale of securities takes 2 days to settle and we prefer not to sell on a day that the market is down.  Therefore, it is preferable if you can let us know in advance so that we can plan for your cash needs.  As always, we will do our best to accommodate you whenever you need help.