Schwab SWVXX Problem
bethwr
Member ✭✭
I saw the announcement that this will show up as cash in Quicken, but this is a terrible change! It is not immediately liquid, and must be sold in order to be used. This change has caused two recent problems for me:
1. Timing was close on a large payment and deposit in my Schwab checking account, but Quicken showed I had plenty of cash in my brokerage account. If the checking is overdrawn, Schwab pulls from cash from the brokerage account. As it turns out, I didn't have any liquid cash in the brokerage, it was nearly all in SWVXX, but I found out after the fact!
2. I manage my grandmother's RMDs, and according to Quicken, she had plenty of cash to move from IRA to brokerage; however, I received a notice from Schwab that they were unable to process the RMD because there was no cash - it was all in SWVXX.
I've been a Quicken user since 1994, and I mostly rely on it to manage exactly these situations. Can anything be done to change this back??
1. Timing was close on a large payment and deposit in my Schwab checking account, but Quicken showed I had plenty of cash in my brokerage account. If the checking is overdrawn, Schwab pulls from cash from the brokerage account. As it turns out, I didn't have any liquid cash in the brokerage, it was nearly all in SWVXX, but I found out after the fact!
2. I manage my grandmother's RMDs, and according to Quicken, she had plenty of cash to move from IRA to brokerage; however, I received a notice from Schwab that they were unable to process the RMD because there was no cash - it was all in SWVXX.
I've been a Quicken user since 1994, and I mostly rely on it to manage exactly these situations. Can anything be done to change this back??
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Comments
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No one here can answer whether this will ever be changed back. I'd note that this change to treating the Schwab money market accounts as cash in Quicken was made a year ago.
We don't know if this change was initiated by Quicken or Schwab, but it seems likely Schwab decided they wanted to do it this way at the time they changed their connectivity system with Quicken. So you might want to pursue that question/lobby for a change with Schwab. You might also want to inquire if Schwab has a way to set the accounts up to automatically sell shares from SWVXX when cash is needed.
Quicken Mac Subscription • Quicken user since 19930 -
I appreciate your response. I didn't make the mandatory Schwab connection change until a few months ago, so I didn't know it had been like this for a year. Beyond that, I never managed cash vs. money market funds so closely in the past because there wasn't much of a delta in the rates. Today, the "sweep" rates pay 0.48%, and SWVXX pays 4.48%.
I will definitely inquire with Schwab.0
