My club DID have a checking account with TD Ameritrade
before our account was transferred to Schwab. I have been
trying to set up a checking account with Schwab since the
merger and have yet to see a checkbook. I have been told by
multiple Schwab representatives that any checks that we
write from a Schwab checking account can only be written to
another account with the same name as our club. This makes
the checking account essentially useless. Like any other
business (and investment clubs ARE businesses), we have
expenses to pay. Any business restricted in such a way would
transfer all its funds to another institution and terminate
its checking account immediately.
I have also been told by a Schwab representative that Schwab
had no investment clubs before the TD Ameritrade merger. Yet
one of the members of my club is also a member of another
club that has been dealing with Schwab for years! Her club
has not had the problems that newly transferred clubs have
experienced. I suspect that clubs that have been with Schwab
for many years were set up differently, perhaps as a
business account, and thus were able to obtain checking
privileges that differ from those of newer clubs.
Unfortunately, no one that I have spoken with at Schwab
seems to be able to tell me how to make my club like those
older clubs. Therefore, I have recommended to my club that
we move our account to a different brokerage. We will be
voting on this tonight.

I don’t think that’s true. It makes no sense. I was told if we had a checking account with TD we can have a checking account with Schwab and can write checks to anyone. If you are transferring stock, you must set up another account with the identical club name at Schwab to transfer the stock to.

Judy

On May 2, 2024, at 4:56 PM, William Peterson via bivio.com <user*26072600001@bivio.com> wrote:

My club DID have a checking account with TD Ameritrade
before our account was transferred to Schwab. I have been
trying to set up a checking account with Schwab since the
merger and have yet to see a checkbook. I have been told by
multiple Schwab representatives that any checks that we
write from a Schwab checking account can only be written to
another account with the same name as our club. This makes
the checking account essentially useless. Like any other
business (and investment clubs ARE businesses), we have
expenses to pay. Any business restricted in such a way would
transfer all its funds to another institution and terminate
its checking account immediately.
I have also been told by a Schwab representative that Schwab
had no investment clubs before the TD Ameritrade merger. Yet
one of the members of my club is also a member of another
club that has been dealing with Schwab for years! Her club
has not had the problems that newly transferred clubs have
experienced. I suspect that clubs that have been with Schwab
for many years were set up differently, perhaps as a
business account, and thus were able to obtain checking
privileges that differ from those of newer clubs.
Unfortunately, no one that I have spoken with at Schwab
seems to be able to tell me how to make my club like those
older clubs. Therefore, I have recommended to my club that
we move our account to a different brokerage. We will be
voting on this tonight.

Yes, an identically named account is required to transfer
stocks. We have already accomplished that, though with some
major difficulty. Schwab has also claimed that we can have a
checking account, though so far they have failed to provide
us with a checkbook. If and when we ever receive a checkbook
I will be able to test if we can write checks to third
parties. Schwab claims that such checks will not be allowed.
In any case, tonight my club voted to switch from Schwab to
Fidelity, and I have begun the process. The application
requires similar information to the one that we submitted to
Schwab, but the instructions are much better, and Fidelity
appears to know what investment clubs are. They are even
mentioned in the instructions for the form!

We moved to Fidelity and found the process cumbersome and painful and requires patience but once all is done it will work out very well. The transfer team at Fidelity were difficult and not picky. They have an active trader pro platform which you can download and is great.

Good luck!

Judy

On May 3, 2024, at 3:57 AM, William Peterson via bivio.com <user*26072600001@bivio.com> wrote:

Yes, an identically named account is required to transfer
stocks. We have already accomplished that, though with some
major difficulty. Schwab has also claimed that we can have a
checking account, though so far they have failed to provide
us with a checkbook. If and when we ever receive a checkbook
I will be able to test if we can write checks to third
parties. Schwab claims that such checks will not be allowed.
In any case, tonight my club voted to switch from Schwab to
Fidelity, and I have begun the process. The application
requires similar information to the one that we submitted to
Schwab, but the instructions are much better, and Fidelity
appears to know what investment clubs are. They are even
mentioned in the instructions for the form!

And the beat goes on!
ttps://finance.yahoo.com/news/charles-schwab-website-mess-hundreds-193600024.html