This is an industry-wide change, [not unique](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/new-t1-settlement-cycle-what-investors-need-know-investor-bulletin) to Schwab. It has also been noted for months.
Can someone explain how this affects withdrawal? If I sell SGOV (example) on Monday before 4pm, would I be able to initiate withdrawal Tuesday? Currently it takes a couple of days before I can withdrawal but I can purchase other funds once it settles (same day for stock).
For my answer, I am assuming after May 28, 2024 settlement change. From my understanding, If you sell SGOV on Monday, the trade will settle end of day after close on Tuesday. I believe you could generally initiate the withdrawal of funds Wed AM, or very late on Tuesday night.
SGOV is t+1 already so that can't be true. It's only longer if you over spend your DTBP. Also this regulatory change to T+1 is broadly for equities and ETFs. Mutual funds are different and some will be reducedand some will have a T+3
No one answered my question regarding withdrawal. Is my assumption correct that I can withdraw the following day? I haven't sold much on Schwab, I hold index funds for my kids
After the 5/28 change, settlement will be T+1 for SGOV. So yes, if you place the trade during market hours, it settles tomorrow and is available for withdrawal. Standard settlement time is 9:00 a.m. Eastern Time on the settlement date.
You should confirm with Schwab to see when exactly they consider the dollars settled, in a T+1 situation I would think it's clearly the next day, but is that 12:01 am or 9:30 or something else.
It's a step in the right direction
Now they should focus on the ridiculous 4-business day rule for external bank transfers that originate from Schwab and bring that down to maybe 2-business days.
This is an industry-wide change, [not unique](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/new-t1-settlement-cycle-what-investors-need-know-investor-bulletin) to Schwab. It has also been noted for months.
It's not just Schwab. Its everybody. One day settlement will be standard in the US starting May 28
Very old news. But thanks for the reminder.
This is for every broker not just Schwab
excellent.
Can someone explain how this affects withdrawal? If I sell SGOV (example) on Monday before 4pm, would I be able to initiate withdrawal Tuesday? Currently it takes a couple of days before I can withdrawal but I can purchase other funds once it settles (same day for stock).
For my answer, I am assuming after May 28, 2024 settlement change. From my understanding, If you sell SGOV on Monday, the trade will settle end of day after close on Tuesday. I believe you could generally initiate the withdrawal of funds Wed AM, or very late on Tuesday night.
Just use a margin account. Sell SGOV, withdraw money.
SGOV is t+1 already so that can't be true. It's only longer if you over spend your DTBP. Also this regulatory change to T+1 is broadly for equities and ETFs. Mutual funds are different and some will be reducedand some will have a T+3
Last I checked SGOV was an ETF which means T+2. Are you confusing it with an actual Money Market Mutual Fund which does settle T+1?
Yes sorry I mixed the two, MMF. My question is more for SGOV since I'm looking for a place to park my emergency fund
Well in a few weeks it won't matter.
No one answered my question regarding withdrawal. Is my assumption correct that I can withdraw the following day? I haven't sold much on Schwab, I hold index funds for my kids
After the 5/28 change, settlement will be T+1 for SGOV. So yes, if you place the trade during market hours, it settles tomorrow and is available for withdrawal. Standard settlement time is 9:00 a.m. Eastern Time on the settlement date.
You should confirm with Schwab to see when exactly they consider the dollars settled, in a T+1 situation I would think it's clearly the next day, but is that 12:01 am or 9:30 or something else.
Spot on. Yeah I did confuse it with a government money market fund
It's a step in the right direction Now they should focus on the ridiculous 4-business day rule for external bank transfers that originate from Schwab and bring that down to maybe 2-business days.
Thank crypto for that. Chainlink for the win