Originally Posted by
Carl
1. SHUTdn by Schw@b (brokerage + checking)
2. Opened 01.17
3. Average daily balance last 12 mo = $4k; last 4 mo = $5.8k
4. Average MO monthly deposit volume last 12 mo = $10k; last 4 mo = $14.7k; last month was highest at $17.9k
Received a reasonably friendly call yesterday afternoon letting me know that they’d made the decision to close my account. As expected, they wouldn’t provide a reason. They are giving a full month to drain the checking account and are allowing withdrawals and transfers out but not deposits. I received a letter today via UPS basically confirming the conversation.
Since I knew I would regret it later if I didn’t exercise the option, I cashed out 160k MRs last night (worth 1.25¢ ea when you have their AX). The $2k appeared in my brokerage account this morning. However, the option to transfer between brokerage and any other account (internal or external) is gone, so I have to request a wire ($25) or paper check to clear these funds.
I signed up for the accounts after hearing an FTU speaker recommend them as very MO friendly and never having issues with $5k deposits multiple times per week. I made 99% of deposits in a branch (which only allows them to go into brokerage) and then transferred them to checking the next day. All interactions in multiple states were always friendly and no one ever questioned the MOs (typically $3-$5k). There was one branch manager who encouraged me to use mobile deposit just to save me from having to come in, but I only did that a couple of times (and only one MO per day) as that seemed riskier to me. I never deposited anything other than MOs, nor did I use the brokerage for any trading. I regularly ACH'd from checking to some external accounts to hit monthly DD minimums.
He said the AX card would get closed on its own sometime after my accounts, as holding it requires a brokerage relationship. Fortunately I’m in my renewal window and can cancel it and not have to pay the AF.
Really sad to end this relationship as everyone was always friendly and helpful, but it was a good run.
I deposit MO at Schwab on two events, I win at the casino and don't feel like keeping that much cash on hand or when there's a GC sale at OD/OM. The account is too valuable to risk losing for MS. Schwab is my hub account where all payroll goes into and I have regular recurring ACH transfers out to an external managed brokerage account as well as one other savings account. I believe even when I did do a more significant amount of MO's a month (probably never exceeded $10k) the other behavior probably mitigated that.
Edit: Just noticed you said you never deposited anything other than MO into the account so my question doesn't matter. Did you ever deposit into the checking or was it always into brokerage and then transfer? That might have done it as well.