Introduction to ACH (Schwab MoneyLink®)

Key features and information

ACH transactions are electronic fund transfers between Schwab accounts and accounts at other financial institutions. ACH profiles provide advisors and clients with more control over where, when, and how often funds are transferred.

  • Leverage eAuthorization via the Digital Account Update tool on the Account Management page to establish an ACH profile.
  • Move funds into or out of a Schwab brokerage account on request or on a recurring basis. 
  • Schedule regular IRA contributions up to the maximum allowed by law. Once the maximum contribution is reached, Schwab automatically deactivates the transfers until the next tax year.
  • Schedule automatic IRA distributions directly into another account. 

Key information related to ACH transactions:

  • There are no fees for these transactions.
  • They cannot be used for international transfers; use outgoing wires as an alternative distribution option.
  • Funds are transferred within one business day if online requests are received by 5:30 p.m. ET.
  • Inbound ACH funds can typically be traded the same business day.
  • ACH profiles are not a bill payment service and cannot be used to make payments to merchants.
  • Setting up new ACH profiles can take up to two weeks to initiate. Once the service is established, transfers can be requested for any business day (allowing one business day to complete a transfer request). Recurring transfers can be set up on a weekly, semimonthly, monthly, last business day of the month, quarterly, semiannual, or annual schedule.
  • Account holders can initiate their own ACH transactions through schwaballiance.com, by using the Schwab Mobile app, or calling Schwab Alliance Service at 800-515-2157.
  • To initiate a transfer, the following Schwab Advisor Center® security functions* need to be assigned to a user or user group:
    • Update Move Money access security function† 
    • Request ACH/Request access security function 
    • Update ACH/Update access security function 

View Move Money function access is a prerequisite for other move money related function access.

 Only assign the security function to users in your firm with withdrawal authority. These security function names are being changed and may be shown with either “ACH” or “MoneyLink”.

Contact your firm security administrator to provide you with the appropriate data access and function access on the Schwab Advisor Center website. If you have questions about adding or removing users, contact Advisor Platform Support at 800-647-5465.

For information regarding ACH features and deposit hold times, refer to the following:

Transfer frequencyOn-Request or recurring—Recurring transfers have a choice of monthly, last business day of the month, semimonthly, quarterly, semiannually, annually, or every X calendar days (from 3 to 364).
AvailabilityMost brokerage and IRA account types (see full list of available accounts and exceptions in the "Eligibility" section)
Cutoff timeRequests received before 5:30 p.m. ET take one business day to process, provided settled funds are available for the transfer. For transfers out of Schwab, cleared funds must be in the account one business day before the scheduled transfer date.
Hold timeFunds deposited via ACH have a hold time of three business days for transfers but are typically available same-day for trading.
Transfer amountNo maximum amount per day, but individual transfers will have a maximum of $500,000.
FeeNone

 

ACH deposit hold times

At Schwab, funds are available to trade from the date of deposit. However, ACH deposits require a three-business-day hold time before your client can withdraw the funds. Existing clients may qualify for access to all or part of their ACH deposit prior to the three-business-day hold if their account meets the current equity requirements AND the following criteria:

  • The account must not have had any checks returned due to insufficient funds, "account closed," or "stop payment" within the past 90 days.
  • The account must not have had any ACH pulls returned within the past 90 days.
  • With the exception of the account holder being unemployed or a student, the account must not have any restrictions.
  • The account must not be flagged as a control/affiliate.

Recurring ACH distributions

When a recurring distribution falls on a weekend or a holiday, the funds will be withdrawn from the Schwab account the business day before the scheduled date and the funds will be delivered at the receiving bank the day after the weekend/holiday.

For example, if a client has a transfer scheduled for Sunday, January 1, it will post to the receiving bank account on the first business day after the weekend/holiday, Tuesday, January 3.; this is a holiday and a weekend. The amount will be withdrawn from the Schwab account the previous business day, Friday, December 31.

Account eligibility for ACH profiles

To check if the type of account your client has is eligible for ACH, review the client's registration under the Profiles tab and use MoneyLink account eligibility.

If all account holders have authorized the "Investment Advisor Authorization" section within the ACH digital workflow or form for an account, investment advisors are authorized to request ACH transfers in the following situations (excluding testamentary trusts):

Eligible ACH transfers

Transfer in from account of identical registrationYes
Transfer in from account of non-identical registration

Yes, if:

  • For one-time transfers, at least one account holder on the Schwab account is also on the other account
  • For recurring transfers, all Schwab account holders initial the "Investment Advisor Authorization" section, and at least one account holder is also on the other account

Note: To establish a new inbound profile, at least one of the Schwab account holders must be on the outside financial institution account.

Transfer out to account of identical registrationYes
Transfer out to account of non-identical registration

Yes

Note: If at least one of the Schwab account holders is not also on the outside financial institution account, the outside financial institution account owner’s signature must be notarized or signed via Schwab Advisor Center DocuSign.

How to cancel standing instructions
How to establish an ACH (Schwab MoneyLink®) profile
How to request a retirement distribution
How to set up Schwab BillPay®
How to submit an ACH transfer
How to submit an outbound wire transfer online
Introduction to alerts

See the following resources to assist you with ACH transactions: