Schwab - no 3rd party checks
Our club transitioned from TD Ameritrade to Schwab. We had
check writing at TD.
We are told by Schwab now we cannot write 3rd party checks
on our investment club account. Therefore, we cannot pay
expenses with the cash in our brokerage account.
Wondering how other clubs are handling this? Do we need to
open a checking account somewhere? Schwab tells us Schwab
checks can only be payable to our investment club.
check writing at TD.
We are told by Schwab now we cannot write 3rd party checks
on our investment club account. Therefore, we cannot pay
expenses with the cash in our brokerage account.
Wondering how other clubs are handling this? Do we need to
open a checking account somewhere? Schwab tells us Schwab
checks can only be payable to our investment club.
With any investment house, you need to build a relationship or have a member who has a Representative and can assist with requests. Our club has been with Schwab since inception, 2001, and through our rep have had no issues as brought up in Club Cafe. My only request would be to allow mobile check deposits which we cannot do as they seem to not allow partnerships this feature.
We have no checking account and in the few instances where we need to disperse funds, we would use a check request form which now is online. I tested this just now to see if I could complete it for our Club, which I could, and then stopped before the final "Go". We use this rarely and for miscellaneous expenses, Bivio subscription, tax mailing, ZOOM, etc. a member will pay the expense and get increased investment in the Club for the amount they spent. Members are comfortable adding to their balance. Makes managing the club accounting much smoother.
Below is a screenshot of the Schwab page to request a check to a third party.
Roman
On Thursday, June 29, 2023 at 05:55:18 PM EDT, Cheryl A Richards via bivio.com <user*25842600001@bivio.com> wrote:
Our club transitioned from TD Ameritrade to Schwab. We had
check writing at TD.
We are told by Schwab now we cannot write 3rd party checks
on our investment club account. Therefore, we cannot pay
expenses with the cash in our brokerage account.
Wondering how other clubs are handling this? Do we need to
open a checking account somewhere? Schwab tells us Schwab
checks can only be payable to our investment club.
check writing at TD.
We are told by Schwab now we cannot write 3rd party checks
on our investment club account. Therefore, we cannot pay
expenses with the cash in our brokerage account.
Wondering how other clubs are handling this? Do we need to
open a checking account somewhere? Schwab tells us Schwab
checks can only be payable to our investment club.
Just an fyi - we tried the online form to request a check
but it was denied and we were told they do not allow
investment clubs to write 3rd party checks.
but it was denied and we were told they do not allow
investment clubs to write 3rd party checks.
Schwab also told us the 3rd party check prohibition applies
to clubs who transitioned from TD Ameritrade.
to clubs who transitioned from TD Ameritrade.
Does a member of your club have a long term relationship with a Representative at Schwab? This person should pursue an exception for your club..
On Thursday, June 29, 2023 at 06:44:17 PM EDT, Cheryl A Richards via bivio.com <user*25842600001@bivio.com> wrote:
Schwab also told us the 3rd party check prohibition applies
to clubs who transitioned from TD Ameritrade.
to clubs who transitioned from TD Ameritrade.
Don't know who this person Cheryl Richard is.
Sent from my iPhone
On Jun 29, 2023, at 6:11 PM, Roman Geletkanycz via bivio.com <user*33583000001@bivio.com> wrote:
Does a member of your club have a long term relationship with a Representative at Schwab? This person should pursue an exception for your club..On Thursday, June 29, 2023 at 06:44:17 PM EDT, Cheryl A Richards via bivio.com <user*25842600001@bivio.com> wrote:Schwab also told us the 3rd party check prohibition applies
to clubs who transitioned from TD Ameritrade.
Sorry not to identify myself. Treasurer, MDI Investment
Club, Janesville WI
Club, Janesville WI
Cheryl,
Given your concerns, I went to our local Schwab branch and asked the question about writing checks to reimburse member expenses. They called someone more educated in investment club accounts and assured me that reimbursing members using the checks Schwab sent was fine.
Best luck to you.
Robin
Treasurer, Diamonds & Dividends
Helen Keller was once asked if there was anything that could have been worse than losing her sight. Keller replied: "Yes, I could have lost my vision."
Our club transitioned from TD Ameritrade to Schwab. We had
check writing at TD.
We are told by Schwab now we cannot write 3rd party checks
on our investment club account. Therefore, we cannot pay
expenses with the cash in our brokerage account.
Wondering how other clubs are handling this? Do we need to
open a checking account somewhere? Schwab tells us Schwab
checks can only be payable to our investment club.
We've been with Schwab since 2008 and have been writing checks to club members to reimburse expenses paid or withdrawals since then with no repercussions from Schwab. We've never had an occasion to write a check to a 3rd party.
Steve Foster
Circle of Friends
On Friday, June 30, 2023 at 03:57:52 PM PDT, Robin Heller via bivio.com <user*24731500001@bivio.com> wrote:
Cheryl,
Given your concerns, I went to our local Schwab branch and asked the question about writing checks to reimburse member expenses. They called someone more educated in investment club accounts and assured me that reimbursing members using the checks Schwab sent was fine.
Best luck to you.
Robin
Treasurer, Diamonds & Dividends
Helen Keller was once asked if there was anything that could have been worse than losing her sight. Keller replied: "Yes, I could have lost my vision."
Our club transitioned from TD Ameritrade to Schwab. We had
check writing at TD.
We are told by Schwab now we cannot write 3rd party checks
on our investment club account. Therefore, we cannot pay
expenses with the cash in our brokerage account.
Wondering how other clubs are handling this? Do we need to
open a checking account somewhere? Schwab tells us Schwab
checks can only be payable to our investment club.
HI all,
I sat down with our local TD/Schwab agent several weeks ago and asked a series of questions that reflected comments I have seen on this forum.
The prohibition on third party checks, he said, applies to times when you ask Schwab to send a check to a non member. If you use the checks you can get from them just by asking, you can write checks to anyone. The agent is double-checking on this for me but says that is how he has seen it historically.
Peg Wentworth, Womens Investment Network, Lititz PA
We've been with Schwab since 2008 and have been writing checks to club members to reimburse expenses paid or withdrawals since then with no repercussions from Schwab. We've never had an occasion to write a check to a 3rd party.Steve FosterCircle of FriendsOn Friday, June 30, 2023 at 03:57:52 PM PDT, Robin Heller via bivio.com <user*24731500001@bivio.com> wrote:Cheryl,Given your concerns, I went to our local Schwab branch and asked the question about writing checks to reimburse member expenses. They called someone more educated in investment club accounts and assured me that reimbursing members using the checks Schwab sent was fine.Best luck to you.RobinTreasurer, Diamonds & DividendsHelen Keller was once asked if there was anything that could have been worse than losing her sight. Keller replied: "Yes, I could have lost my vision."
Our club transitioned from TD Ameritrade to Schwab. We had
check writing at TD.
We are told by Schwab now we cannot write 3rd party checks
on our investment club account. Therefore, we cannot pay
expenses with the cash in our brokerage account.
Wondering how other clubs are handling this? Do we need to
open a checking account somewhere? Schwab tells us Schwab
checks can only be payable to our investment club.
Peg,
Thiś makes some sense with what I have been seeing from all sorts of brokerages on all sorts of accounts in my tax practice. They are hyper-cautious to not let any money leave their control. A request for a check can be forged, so they'll only release the funds if the funds are going to another account that is still within their "control". A physical check written by the club and signed by an authorized party on the club account is harder to forge - and is easier to prosecute if it is successfully forged. (I'm not a lawyer, but I think the criminal liability is greater for forging a negotiable instrument.)
Ira Smilovitz, EA
HI all,I sat down with our local TD/Schwab agent several weeks ago and asked a series of questions that reflected comments I have seen on this forum.The prohibition on third party checks, he said, applies to times when you ask Schwab to send a check to a non member. If you use the checks you can get from them just by asking, you can write checks to anyone. The agent is double-checking on this for me but says that is how he has seen it historically.Peg Wentworth, Womens Investment Network, Lititz PAWe've been with Schwab since 2008 and have been writing checks to club members to reimburse expenses paid or withdrawals since then with no repercussions from Schwab. We've never had an occasion to write a check to a 3rd party.Steve FosterCircle of FriendsOn Friday, June 30, 2023 at 03:57:52 PM PDT, Robin Heller via bivio.com <user*24731500001@bivio.com> wrote:Cheryl,Given your concerns, I went to our local Schwab branch and asked the question about writing checks to reimburse member expenses. They called someone more educated in investment club accounts and assured me that reimbursing members using the checks Schwab sent was fine.Best luck to you.RobinTreasurer, Diamonds & DividendsHelen Keller was once asked if there was anything that could have been worse than losing her sight. Keller replied: "Yes, I could have lost my vision."
Our club transitioned from TD Ameritrade to Schwab. We had
check writing at TD.
We are told by Schwab now we cannot write 3rd party checks
on our investment club account. Therefore, we cannot pay
expenses with the cash in our brokerage account.
Wondering how other clubs are handling this? Do we need to
open a checking account somewhere? Schwab tells us Schwab
checks can only be payable to our investment club.