I was shocked when my Club's checks drowned on our Foliofn
account were bouncing when deposit. For example, I was
planning a two month RV Caravan to Mexico. So I withdrew
funds to pay for the event. We sold shares to cover my
withdrawal and I deposited my withdrawal check into my bank.
Well the check bounced though our cash balance was more than
enough to cover the check. I contacted Foliofn Customer
Support to find out that it is Foliofn policy to hold funds
from Bill Pay for SIXTY(60) days from date of deposit. This
is ridiculous since my Bill Pay deposits in FolioFN clear my
bank in two days. Just thought you should know.
Len Douglass on
From Folio's Website "Funds Available for Withdrawal From Deposits
While you will generally be able to make an investment 1 business day after
funds are deposited into your account, you will generally not be able to
withdraw the new deposit money from your account for 5 business days. Funds
received through Bill Pay will not be available for withdrawal for 60
calendar days.
From Securities Sales
When you sell securities that settle 3 days after trading (T+3) such as
exchange listed equities, the sell amount cannot be withdrawn until the
third trading day after the sell date. When you sell securities that settle
1 day after trading (T+1) such as most mutual funds, the sell amount cannot
be withdrawn until the trading day after the sell date."
Who Knew? Folio has a lot of surprises for example the "Free Trades for BI
Members" is only good for the first year, my experience was less than
positive it started good and then Folio started charging an inactivity fee
when I didn't use all the free trades, then after half a year told me I
didn't qualify for the free trades although I had for the first six months.
End result I unfunded my Folio personal account and went back to Scottrade.
Recently I followed Hugh McManus advice and checked out Merrill Lynch
Preferred Rewards.
Thinking about Larry's issue I have several club members who make their
Monthly Contributions with Bill pay. How does that impact the Model Club
being able to do business and write checks on Folio?
Len Douglass, Financial Partner SEMICH NAIC Model Club
-----Original Message-----
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Larry
Reno via bivio.com
Sent: Tuesday, December 27, 2016 11:56 PM
To: club_cafe@bivio.com
Subject: [club_cafe] Folio Policy on Bill Pay Funds
I was shocked when my Club's checks drowned on our Foliofn account were
bouncing when deposit. For example, I was planning a two month RV Caravan to
Mexico. So I withdrew funds to pay for the event. We sold shares to cover my
withdrawal and I deposited my withdrawal check into my bank.
Well the check bounced though our cash balance was more than enough to cover
the check. I contacted Foliofn Customer Support to find out that it is
Foliofn policy to hold funds from Bill Pay for SIXTY(60) days from date of
deposit. This is ridiculous since my Bill Pay deposits in FolioFN clear my
bank in two days. Just thought you should know.
Laurie Frederiksen on
This is certainly odd and seems unjustified. I have sent an email to Folio to see if I can get any further clarification or justification for this hold.
It is, however, a bit unclear to me Larry, exactly what happened. Would they not cash any portion of your withdrawal check because some of the cash in your account had come from Electronic bill pay deposits?
Laurie Frederiksen Invest with your friends! www.bivio.com
I would assume it's an "all or nothing" transaction. That is, if all the funds necessary to pay a check aren't "available" then nothing is paid. TDAmeritrade has the same 60 day hold on in-bound electronic funds transfers, but only on new accounts. Accounts open for more than 60 days have a three day hold after settlement, but TDA reserves the right to hold electronic deposits for up to 60 days. Checks are held for six days before the funds can be withdrawn. In all cases, deposited funds can be used for most security purchases as soon as they settle (no hold period).
Ira Smilovitz
On Wed, Dec 28, 2016 at 9:48 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:
This is certainly odd and seems unjustified. I have sent an email to Folio to see if I can get any further clarification or justification for this hold.
It is, however, a bit unclear to me Larry, exactly what happened. Would they not cash any portion of your withdrawal check because some of the cash in your account had come from Electronic bill pay deposits?
Laurie Frederiksen Invest with your friends! www.bivio.com
Unless this is something brand new - I don't think it applies to the club transactions.
Kim
From: Len Douglass <pbco@comcast.net> To: club_cafe@bivio.com Sent: Wednesday, December 28, 2016 9:17 AM Subject: RE: [club_cafe] Folio Policy on Bill Pay Funds
From Folio's Website "Funds Available for Withdrawal From Deposits
While you will generally be able to make an investment 1 business day after funds are deposited into your account, you will generally not be able to withdraw the new deposit money from your account for 5 business days. Funds received through Bill Pay will not be available for withdrawal for 60 calendar days.
From Securities Sales
When you sell securities that settle 3 days after trading (T+3) such as exchange listed equities, the sell amount cannot be withdrawn until the third trading day after the sell date. When you sell securities that settle 1 day after trading (T+1) such as most mutual funds, the sell amount cannot be withdrawn until the trading day after the sell date."
Who Knew? Folio has a lot of surprises for example the "Free Trades for BI Members" is only good for the first year, my experience was less than positive it started good and then Folio started charging an inactivity fee when I didn't use all the free trades, then after half a year told me I didn't qualify for the free trades although I had for the first six months. End result I unfunded my Folio personal account and went back to Scottrade. Recently I followed Hugh McManus advice and checked out Merrill Lynch Preferred Rewards.
Thinking about Larry's issue I have several club members who make their Monthly Contributions with Bill pay. How does that impact the Model Club being able to do business and write checks on Folio?
Len Douglass, Financial Partner SEMICH NAIC Model Club
-----Original Message----- From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Larry Reno via bivio.com Sent: Tuesday, December 27, 2016 11:56 PM To: club_cafe@bivio.com Subject: [club_cafe] Folio Policy on Bill Pay Funds
I was shocked when my Club's checks drowned on our Foliofn account were bouncing when deposit. For example, I was planning a two month RV Caravan to Mexico. So I withdrew funds to pay for the event. We sold shares to cover my withdrawal and I deposited my withdrawal check into my bank. Well the check bounced though our cash balance was more than enough to cover the check. I contacted Foliofn Customer Support to find out that it is Foliofn policy to hold funds from Bill Pay for SIXTY(60) days from date of deposit. This is ridiculous since my Bill Pay deposits in FolioFN clear my bank in two days. Just thought you should know.
Larry Reno on
Laurie,
I didn't want to go into too much detail so as not to bore you but here is what happened. All but one Partner in one of my Clubs uses Bill Pay for monthly deposits. On 6 Dec at our meeting we had $1,600 in cash and I wanted to withdraw $20K to fund an RV Caravan trip. So we elected to sell sufficient stocks on 7 Dec to fund the withdrawal and after the sell we had approximately $20,450 in cash per Folio. I deposited a check for $20K in my bank on 9 Dec, allowing sufficient time for the sells to settle before my check was settled at Folio. My bank returned my check NSF on 19 Dec. I called Folio and they said we only had $17,450 available and the balance of my withdrawal will not be available until 9 Feb 2017 when the Bill Pay would clear 60 days after deposited in Folio.
Just because it shows up as available in your cash account at Folio it MAY not be available to withdraw. However, you can invest those funds the day they are received. Even if you buy one day and sell those stock the next day they still hold the cash proceeds fore 60 days before they are available to withdraw. I have had another withdrawing Partner's check bounce and TWO BI membership renewal checks returned in the last 30 days.
If you are not using Bill Pay this should not be a problem. If you are using Bill Pay log into Folio and find Cash Balance on the front page. Click on <Deposit or withdraw Money>, then click on <Withdrawal>. On the right side of the page it swill show you <Projected Cash Balance> for the next five business days. Just be aware before you start writing checks to make sure yours funds are REALLY available for withdrawal.
I have filed a complaint with Folio last night and ask for a one time exception so I can get the funds to pay for my trip. I have also asked them to reconsider their policy off holding Bill Pay funds for 60 days. BTW, I have had these account for about six years and have over $160K in stocks.
Maybe if enough of us using Folio complain they may reevaluate their Bill Pay policy.
Ye ole bud,....Larry
Larry Reno
-----Original Message-----
From: Laurie Frederiksen <laurie@bivio.biz>
To: The Club Cafe <club_cafe@bivio.com>
Sent: Wed, Dec 28, 2016 9:49 am
Subject: Re: [club_cafe] Folio Policy on Bill Pay Funds
This is certainly odd and seems unjustified. I have sent an email to Folio to see if I can get any further clarification or justification for this hold.
It is, however, a bit unclear to me Larry, exactly what happened. Would they not cash any portion of your withdrawal check because some of the cash in your account had come from Electronic bill pay deposits?
Laurie Frederiksen
Invest with your friends! www.bivio.com
See my note to Laurie for more details. One of my accounts is the Georgia Model Club and a withdrawing members check bounce this month. We will have to monitor when funds are available and reissue that check.
Ye ole bud,....Larry
Larry Reno
-----Original Message-----
From: Len Douglass <pbco@comcast.net>
To: club_cafe <club_cafe@bivio.com>
Sent: Wed, Dec 28, 2016 9:17 am
Subject: RE: [club_cafe] Folio Policy on Bill Pay Funds
From Folio's Website "Funds Available for Withdrawal From Deposits
While you will generally be able to make an investment 1 business day after
funds are deposited into your account, you will generally not be able to
withdraw the new deposit money from your account for 5 business days. Funds
received through Bill Pay will not be available for withdrawal for 60
calendar days.
From Securities Sales
When you sell securities that settle 3 days after trading (T+3) such as
exchange listed equities, the sell amount cannot be withdrawn until the
third trading day after the sell date. When you sell securities that settle
1 day after trading (T+1) such as most mutual funds, the sell amount cannot
be withdrawn until the trading day after the sell date."
Who Knew? Folio has a lot of surprises for example the "Free Trades for BI
Members" is only good for the first year, my experience was less than
positive it started good and then Folio started charging an inactivity fee
when I didn't use all the free trades, then after half a year told me I
didn't qualify for the free trades although I had for the first six months.
End result I unfunded my Folio personal account and went back to Scottrade.
Recently I followed Hugh McManus advice and checked out Merrill Lynch
Preferred Rewards.
Thinking about Larry's issue I have several club members who make their
Monthly Contributions with Bill pay. How does that impact the Model Club
being able to do business and write checks on Folio?
Len Douglass, Financial Partner SEMICH NAIC Model Club
I was shocked when my Club's checks drowned on our Foliofn account were
bouncing when deposit. For example, I was planning a two month RV Caravan to
Mexico. So I withdrew funds to pay for the event. We sold shares to cover my
withdrawal and I deposited my withdrawal check into my bank.
Well the check bounced though our cash balance was more than enough to cover
the check. I contacted Foliofn Customer Support to find out that it is
Foliofn policy to hold funds from Bill Pay for SIXTY(60) days from date of
deposit. This is ridiculous since my Bill Pay deposits in FolioFN clear my
bank in two days. Just thought you should know.
Larry Reno on
Kim
This applies to all accounts at Folio funded by Bill Pay!
Ye ole bud,....Larry
Larry Reno
-----Original Message-----
From: Mike & Kim Potter <byrdshot@ameritech.net>
To: club_cafe <club_cafe@bivio.com>
Sent: Wed, Dec 28, 2016 11:08 am
Subject: Re: [club_cafe] Folio Policy on Bill Pay Funds
Len,
Unless this is something brand new - I don't think it applies to the club transactions.
Kim
From: Len Douglass <pbco@comcast.net> To:club_cafe@bivio.com Sent: Wednesday, December 28, 2016 9:17 AM Subject: RE: [club_cafe] Folio Policy on Bill Pay Funds
From Folio's Website "Funds Available for Withdrawal From Deposits
While you will generally be able to make an investment 1 business day after funds are deposited into your account, you will generally not be able to withdraw the new deposit money from your account for 5 business days. Funds received through Bill Pay will not be available for withdrawal for 60 calendar days.
From Securities Sales
When you sell securities that settle 3 days after trading (T+3) such as exchange listed equities, the sell amount cannot be withdrawn until the third trading day after the sell date. When you sell securities that settle 1 day after trading (T+1) such as most mutual funds, the sell amount cannot be withdrawn until the trading day after the sell date."
Who Knew? Folio has a lot of surprises for example the "Free Trades for BI Members" is only good for the first year, my experience was less than positive it started good and then Folio started charging an inactivity fee when I didn't use all the free trades, then after half a year told me I didn't qualify for the free trades although I had for the first six months. End result I unfunded my Folio personal account and went back to Scottrade. Recently I followed Hugh McManus advice and checked out Merrill Lynch Preferred Rewards.
Thinking about Larry's issue I have several club members who make their Monthly Contributions with Bill pay. How does that impact the Model Club being able to do business and write checks on Folio?
Len Douglass, Financial Partner SEMICH NAIC Model Club
-----Original Message----- From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Larry Reno via bivio.com Sent: Tuesday, December 27, 2016 11:56 PM To: club_cafe@bivio.com Subject: [club_cafe] Folio Policy on Bill Pay Funds
I was shocked when my Club's checks drowned on our Foliofn account were bouncing when deposit. For example, I was planning a two month RV Caravan to Mexico. So I withdrew funds to pay for the event. We sold shares to cover my withdrawal and I deposited my withdrawal check into my bank. Well the check bounced though our cash balance was more than enough to cover the check. I contacted Foliofn Customer Support to find out that it is Foliofn policy to hold funds from Bill Pay for SIXTY(60) days from date of deposit. This is ridiculous since my Bill Pay deposits in FolioFN clear my bank in two days. Just thought you should know.
ira smilovitz on
Note that as I posted earlier, this is also the policy at TDAmeritrade.
Sent: Wed, Dec 28, 2016 11:08 am
Subject: Re: [club_cafe] Folio Policy on Bill Pay Funds
Len,
Unless this is something brand new - I don't think it applies to the club transactions.
Kim
From: Len Douglass <pbco@comcast.net> To:club_cafe@bivio.com Sent: Wednesday, December 28, 2016 9:17 AM Subject: RE: [club_cafe] Folio Policy on Bill Pay Funds
From Folio's Website "Funds Available for Withdrawal From Deposits
While you will generally be able to make an investment 1 business day after funds are deposited into your account, you will generally not be able to withdraw the new deposit money from your account for 5 business days. Funds received through Bill Pay will not be available for withdrawal for 60 calendar days.
From Securities Sales
When you sell securities that settle 3 days after trading (T+3) such as exchange listed equities, the sell amount cannot be withdrawn until the third trading day after the sell date. When you sell securities that settle 1 day after trading (T+1) such as most mutual funds, the sell amount cannot be withdrawn until the trading day after the sell date."
Who Knew? Folio has a lot of surprises for example the "Free Trades for BI Members" is only good for the first year, my experience was less than positive it started good and then Folio started charging an inactivity fee when I didn't use all the free trades, then after half a year told me I didn't qualify for the free trades although I had for the first six months. End result I unfunded my Folio personal account and went back to Scottrade. Recently I followed Hugh McManus advice and checked out Merrill Lynch Preferred Rewards.
Thinking about Larry's issue I have several club members who make their Monthly Contributions with Bill pay. How does that impact the Model Club being able to do business and write checks on Folio?
Len Douglass, Financial Partner SEMICH NAIC Model Club
I was shocked when my Club's checks drowned on our Foliofn account were bouncing when deposit. For example, I was planning a two month RV Caravan to Mexico. So I withdrew funds to pay for the event. We sold shares to cover my withdrawal and I deposited my withdrawal check into my bank. Well the check bounced though our cash balance was more than enough to cover the check. I contacted Foliofn Customer Support to find out that it is Foliofn policy to hold funds from Bill Pay for SIXTY(60) days from date of deposit. This is ridiculous since my Bill Pay deposits in FolioFN clear my bank in two days. Just thought you should know.
Laurie Frederiksen on
From what you said, Ira, it sounded like a long hold was discretionary on TDA's part once your account had been open for a while. Do you think that is the case? Not sure this is true with Folio.
Larry, thank you for details. If you had withdrawn only the cash you had received from the stock sales and not touched the cash that had come in from Automatic bill pay, would you have been able to avoid the issue and withdraw most of the funds you needed? Not that that would be optimum on a lot of levels, but at least it wouldn't have been all of your cash that was unavailable.
Thank you for bringing this issue to light. It certainly wasn't anything I was aware of or have had a problem with in the past when paying withdrawals from either Folio or TDAmeritrade.
Laurie Frederiksen Invest with your friends! www.bivio.com
Sent: Wed, Dec 28, 2016 11:08 am
Subject: Re: [club_cafe] Folio Policy on Bill Pay Funds
Len,
Unless this is something brand new - I don't think it applies to the club transactions.
Kim
From: Len Douglass <pbco@comcast.net> To:club_cafe@bivio.com Sent: Wednesday, December 28, 2016 9:17 AM Subject: RE: [club_cafe] Folio Policy on Bill Pay Funds
From Folio's Website "Funds Available for Withdrawal From Deposits
While you will generally be able to make an investment 1 business day after funds are deposited into your account, you will generally not be able to withdraw the new deposit money from your account for 5 business days. Funds received through Bill Pay will not be available for withdrawal for 60 calendar days.
From Securities Sales
When you sell securities that settle 3 days after trading (T+3) such as exchange listed equities, the sell amount cannot be withdrawn until the third trading day after the sell date. When you sell securities that settle 1 day after trading (T+1) such as most mutual funds, the sell amount cannot be withdrawn until the trading day after the sell date."
Who Knew? Folio has a lot of surprises for example the "Free Trades for BI Members" is only good for the first year, my experience was less than positive it started good and then Folio started charging an inactivity fee when I didn't use all the free trades, then after half a year told me I didn't qualify for the free trades although I had for the first six months. End result I unfunded my Folio personal account and went back to Scottrade. Recently I followed Hugh McManus advice and checked out Merrill Lynch Preferred Rewards.
Thinking about Larry's issue I have several club members who make their Monthly Contributions with Bill pay. How does that impact the Model Club being able to do business and write checks on Folio?
Len Douglass, Financial Partner SEMICH NAIC Model Club
I was shocked when my Club's checks drowned on our Foliofn account were bouncing when deposit. For example, I was planning a two month RV Caravan to Mexico. So I withdrew funds to pay for the event. We sold shares to cover my withdrawal and I deposited my withdrawal check into my bank. Well the check bounced though our cash balance was more than enough to cover the check. I contacted Foliofn Customer Support to find out that it is Foliofn policy to hold funds from Bill Pay for SIXTY(60) days from date of deposit. This is ridiculous since my Bill Pay deposits in FolioFN clear my bank in two days. Just thought you should know.
Roy Chastain on
Such holds might be discretionary, but I've not encountered it when I've requested checks. Neither TD Ameritrade nor Schwab have held funds beyond the 3 ( or 4) days after I sold securities to get cash.
Sent from my iPhone. Please excuse any mistakes that SIRI might make.
On Dec 28, 2016, at 12:13 PM, Laurie Frederiksen <laurie@bivio.biz> wrote:
From what you said, Ira, it sounded like a long hold was discretionary on TDA's part once your account had been open for a while. Do you think that is the case? Not sure this is true with Folio.
Larry, thank you for details. If you had withdrawn only the cash you had received from the stock sales and not touched the cash that had come in from Automatic bill pay, would you have been able to avoid the issue and withdraw most of the funds you needed? Not that that would be optimum on a lot of levels, but at least it wouldn't have been all of your cash that was unavailable.
Thank you for bringing this issue to light. It certainly wasn't anything I was aware of or have had a problem with in the past when paying withdrawals from either Folio or TDAmeritrade.
Laurie Frederiksen Invest with your friends! www.bivio.com
Sent: Wed, Dec 28, 2016 11:08 am
Subject: Re: [club_cafe] Folio Policy on Bill Pay Funds
Len,
Unless this is something brand new - I don't think it applies to the club transactions.
Kim
From: Len Douglass <pbco@comcast.net> To:club_cafe@bivio.com Sent: Wednesday, December 28, 2016 9:17 AM Subject: RE: [club_cafe] Folio Policy on Bill Pay Funds
From Folio's Website "Funds Available for Withdrawal From Deposits
While you will generally be able to make an investment 1 business day after funds are deposited into your account, you will generally not be able to withdraw the new deposit money from your account for 5 business days. Funds received through Bill Pay will not be available for withdrawal for 60 calendar days.
From Securities Sales
When you sell securities that settle 3 days after trading (T+3) such as exchange listed equities, the sell amount cannot be withdrawn until the third trading day after the sell date. When you sell securities that settle 1 day after trading (T+1) such as most mutual funds, the sell amount cannot be withdrawn until the trading day after the sell date."
Who Knew? Folio has a lot of surprises for example the "Free Trades for BI Members" is only good for the first year, my experience was less than positive it started good and then Folio started charging an inactivity fee when I didn't use all the free trades, then after half a year told me I didn't qualify for the free trades although I had for the first six months. End result I unfunded my Folio personal account and went back to Scottrade. Recently I followed Hugh McManus advice and checked out Merrill Lynch Preferred Rewards.
Thinking about Larry's issue I have several club members who make their Monthly Contributions with Bill pay. How does that impact the Model Club being able to do business and write checks on Folio?
Len Douglass, Financial Partner SEMICH NAIC Model Club
I was shocked when my Club's checks drowned on our Foliofn account were bouncing when deposit. For example, I was planning a two month RV Caravan to Mexico. So I withdrew funds to pay for the event. We sold shares to cover my withdrawal and I deposited my withdrawal check into my bank. Well the check bounced though our cash balance was more than enough to cover the check. I contacted Foliofn Customer Support to find out that it is Foliofn policy to hold funds from Bill Pay for SIXTY(60) days from date of deposit. This is ridiculous since my Bill Pay deposits in FolioFN clear my bank in two days. Just thought you should know.
ira smilovitz on
Roy,
The issue isn't that the broker holds proceeds from stock sales. It's that they hold funds which arrive in the account via BillPay for 60 days before they let those funds be withdrawn from the account. There is no restriction on using the funds to purchase stock.
Ira Smilovitz
It appears that they are trying to protect themselves from some sort of money-laundering or fraudulent transfer scheme.
On Wed, Dec 28, 2016 at 3:19 PM, Roy Chastain <roy12@me.com> wrote:
Such holds might be discretionary, but I've not encountered it when I've requested checks. Neither TD Ameritrade nor Schwab have held funds beyond the 3 ( or 4) days after I sold securities to get cash.
Sent from my iPhone. Please excuse any mistakes that SIRI might make.
On Dec 28, 2016, at 12:13 PM, Laurie Frederiksen <laurie@bivio.biz> wrote:
From what you said, Ira, it sounded like a long hold was discretionary on TDA's part once your account had been open for a while. Do you think that is the case? Not sure this is true with Folio.
Larry, thank you for details. If you had withdrawn only the cash you had received from the stock sales and not touched the cash that had come in from Automatic bill pay, would you have been able to avoid the issue and withdraw most of the funds you needed? Not that that would be optimum on a lot of levels, but at least it wouldn't have been all of your cash that was unavailable.
Thank you for bringing this issue to light. It certainly wasn't anything I was aware of or have had a problem with in the past when paying withdrawals from either Folio or TDAmeritrade.
Laurie Frederiksen Invest with your friends! www.bivio.com
Sent: Wed, Dec 28, 2016 11:08 am
Subject: Re: [club_cafe] Folio Policy on Bill Pay Funds
Len,
Unless this is something brand new - I don't think it applies to the club transactions.
Kim
From: Len Douglass <pbco@comcast.net> To:club_cafe@bivio.com Sent: Wednesday, December 28, 2016 9:17 AM Subject: RE: [club_cafe] Folio Policy on Bill Pay Funds
From Folio's Website "Funds Available for Withdrawal From Deposits
While you will generally be able to make an investment 1 business day after funds are deposited into your account, you will generally not be able to withdraw the new deposit money from your account for 5 business days. Funds received through Bill Pay will not be available for withdrawal for 60 calendar days.
From Securities Sales
When you sell securities that settle 3 days after trading (T+3) such as exchange listed equities, the sell amount cannot be withdrawn until the third trading day after the sell date. When you sell securities that settle 1 day after trading (T+1) such as most mutual funds, the sell amount cannot be withdrawn until the trading day after the sell date."
Who Knew? Folio has a lot of surprises for example the "Free Trades for BI Members" is only good for the first year, my experience was less than positive it started good and then Folio started charging an inactivity fee when I didn't use all the free trades, then after half a year told me I didn't qualify for the free trades although I had for the first six months. End result I unfunded my Folio personal account and went back to Scottrade. Recently I followed Hugh McManus advice and checked out Merrill Lynch Preferred Rewards.
Thinking about Larry's issue I have several club members who make their Monthly Contributions with Bill pay. How does that impact the Model Club being able to do business and write checks on Folio?
Len Douglass, Financial Partner SEMICH NAIC Model Club
I was shocked when my Club's checks drowned on our Foliofn account were bouncing when deposit. For example, I was planning a two month RV Caravan to Mexico. So I withdrew funds to pay for the event. We sold shares to cover my withdrawal and I deposited my withdrawal check into my bank. Well the check bounced though our cash balance was more than enough to cover the check. I contacted Foliofn Customer Support to find out that it is Foliofn policy to hold funds from Bill Pay for SIXTY(60) days from date of deposit. This is ridiculous since my Bill Pay deposits in FolioFN clear my bank in two days. Just thought you should know.
Larry Reno on
Laurie,
.
No, they withhold ALL funds regardless of their source until those funds deposited by Bill Pay have been cleared in the account for 60 days!? It is difficult to understand. You have to keep sufficient "cash" in the account to cover those Bill Pay funds until those funds have been there 60 days. In my case we sold approximately $19,000 in stocks. Though we have $20,500 (Round figures) they held over $3,000 of Bill Pay funds that had been deposited in the account less than 60 days and of course my check for $20K bounced.
If you had withdrawn only the cash you had received from the stock sales and not touched the cash that had come in from Automatic bill pay,
Ye ole bud,....Larry
Larry Reno
-----Original Message-----
From: ira smilovitz <ira.smilovitz@gmail.com>
To: club_cafe <club_cafe@bivio.com>
Sent: Wed, Dec 28, 2016 6:31 pm
Subject: Re: [club_cafe] Folio Policy on Bill Pay Funds
Roy,
The issue isn't that the broker holds proceeds from stock sales. It's that they hold funds which arrive in the account via BillPay for 60 days before they let those funds be withdrawn from the account. There is no restriction on using the funds to purchase stock.
Ira Smilovitz
It appears that they are trying to protect themselves from some sort of money-laundering or fraudulent transfer scheme.
On Wed, Dec 28, 2016 at 3:19 PM, Roy Chastain <roy12@me.com> wrote:
Such holds might be discretionary, but I've not encountered it when I've requested checks. Neither TD Ameritrade nor Schwab have held funds beyond the 3 ( or 4) days after I sold securities to get cash.
Sent from my iPhone. Please excuse any mistakes that SIRI might make.
On Dec 28, 2016, at 12:13 PM, Laurie Frederiksen <laurie@bivio.biz> wrote:
From what you said, Ira, it sounded like a long hold was discretionary on TDA's part once your account had been open for a while. Do you think that is the case? Not sure this is true with Folio.
Larry, thank you for details. If you had withdrawn only the cash you had received from the stock sales and not touched the cash that had come in from Automatic bill pay, would you have been able to avoid the issue and withdraw most of the funds you needed? Not that that would be optimum on a lot of levels, but at least it wouldn't have been all of your cash that was unavailable.
Thank you for bringing this issue to light. It certainly wasn't anything I was aware of or have had a problem with in the past when paying withdrawals from either Folio or TDAmeritrade.
Laurie Frederiksen
Invest with your friends! www.bivio.com
Sent: Wed, Dec 28, 2016 11:08 am
Subject: Re: [club_cafe] Folio Policy on Bill Pay Funds
Len,
Unless this is something brand new - I don't think it applies to the club transactions.
Kim
From: Len Douglass <pbco@comcast.net> To:club_cafe@bivio.com Sent: Wednesday, December 28, 2016 9:17 AM Subject: RE: [club_cafe] Folio Policy on Bill Pay Funds
From Folio's Website "Funds Available for Withdrawal From Deposits
While you will generally be able to make an investment 1 business day after funds are deposited into your account, you will generally not be able to withdraw the new deposit money from your account for 5 business days. Funds received through Bill Pay will not be available for withdrawal for 60 calendar days.
From Securities Sales
When you sell securities that settle 3 days after trading (T+3) such as exchange listed equities, the sell amount cannot be withdrawn until the third trading day after the sell date. When you sell securities that settle 1 day after trading (T+1) such as most mutual funds, the sell amount cannot be withdrawn until the trading day after the sell date."
Who Knew? Folio has a lot of surprises for example the "Free Trades for BI Members" is only good for the first year, my experience was less than positive it started good and then Folio started charging an inactivity fee when I didn't use all the free trades, then after half a year told me I didn't qualify for the free trades although I had for the first six months. End result I unfunded my Folio personal account and went back to Scottrade. Recently I followed Hugh McManus advice and checked out Merrill Lynch Preferred Rewards.
Thinking about Larry's issue I have several club members who make their Monthly Contributions with Bill pay. How does that impact the Model Club being able to do business and write checks on Folio?
Len Douglass, Financial Partner SEMICH NAIC Model Club
I was shocked when my Club's checks drowned on our Foliofn account were bouncing when deposit. For example, I was planning a two month RV Caravan to Mexico. So I withdrew funds to pay for the event. We sold shares to cover my withdrawal and I deposited my withdrawal check into my bank. Well the check bounced though our cash balance was more than enough to cover the check. I contacted Foliofn Customer Support to find out that it is Foliofn policy to hold funds from Bill Pay for SIXTY(60) days from date of deposit. This is ridiculous since my Bill Pay deposits in FolioFN clear my bank in two days. Just thought you should know.
Larry Reno on
Yes Ira, as I understand that is TDAmeritrade's policy for the first 6 months. I have had these accounts with Folio more than six years!
Ye ole bud,....Larry
Larry Reno
-----Original Message-----
From: ira smilovitz <ira.smilovitz@gmail.com>
To: club_cafe <club_cafe@bivio.com>
Sent: Wed, Dec 28, 2016 3:02 pm
Subject: Re: [club_cafe] Folio Policy on Bill Pay Funds
Note that as I posted earlier, this is also the policy at TDAmeritrade.
Sent: Wed, Dec 28, 2016 11:08 am
Subject: Re: [club_cafe] Folio Policy on Bill Pay Funds
Len,
Unless this is something brand new - I don't think it applies to the club transactions.
Kim
From: Len Douglass <pbco@comcast.net> To:club_cafe@bivio.com Sent: Wednesday, December 28, 2016 9:17 AM Subject: RE: [club_cafe] Folio Policy on Bill Pay Funds
From Folio's Website "Funds Available for Withdrawal From Deposits
While you will generally be able to make an investment 1 business day after funds are deposited into your account, you will generally not be able to withdraw the new deposit money from your account for 5 business days. Funds received through Bill Pay will not be available for withdrawal for 60 calendar days.
From Securities Sales
When you sell securities that settle 3 days after trading (T+3) such as exchange listed equities, the sell amount cannot be withdrawn until the third trading day after the sell date. When you sell securities that settle 1 day after trading (T+1) such as most mutual funds, the sell amount cannot be withdrawn until the trading day after the sell date."
Who Knew? Folio has a lot of surprises for example the "Free Trades for BI Members" is only good for the first year, my experience was less than positive it started good and then Folio started charging an inactivity fee when I didn't use all the free trades, then after half a year told me I didn't qualify for the free trades although I had for the first six months. End result I unfunded my Folio personal account and went back to Scottrade. Recently I followed Hugh McManus advice and checked out Merrill Lynch Preferred Rewards.
Thinking about Larry's issue I have several club members who make their Monthly Contributions with Bill pay. How does that impact the Model Club being able to do business and write checks on Folio?
Len Douglass, Financial Partner SEMICH NAIC Model Club
I was shocked when my Club's checks drowned on our Foliofn account were bouncing when deposit. For example, I was planning a two month RV Caravan to Mexico. So I withdrew funds to pay for the event. We sold shares to cover my withdrawal and I deposited my withdrawal check into my bank. Well the check bounced though our cash balance was more than enough to cover the check. I contacted Foliofn Customer Support to find out that it is Foliofn policy to hold funds from Bill Pay for SIXTY(60) days from date of deposit. This is ridiculous since my Bill Pay deposits in FolioFN clear my bank in two days. Just thought you should know.