Moving cash from our client’s investment accounts to personal bank accounts or third parties is a function we perform frequently. To combat the growth in identity theft, regulatory requirements on cash transfers have increased significantly over the past few years. We wanted to take this opportunity to review the processes and protections that are in place when moving money from your accounts.
Most transfers we process move money from an investment account to a client’s bank account. This is referred to as a first party transfer since you are moving money to an account in your name.
We also perform transfers to third parties. These transfers occur when you move money to someone other than yourself such as donating to a charity, paying taxes, or gifting money to a family member.
Please note that new industry regulations require us to have signed instructions from you to complete both of these transfer types. If you frequently move money between accounts, we suggest establishing standing instructions that we keep on file. Standing instructions create an electronic link between your accounts. Once the link is established, we can move money to and from your bank account with your verbal approval. Please be aware that the initial set-up of standing instructions takes 5-7 business days before money can be moved for the first time.
If you frequently move money between accounts, we suggest establishing standing instructions that we keep on file.
There are three basic ways we can transfer money:
- Electronic Funds Transfer (EFT) – An EFT is the most common way to move money between accounts. You provide us with your bank account information to establish standing instructions. Once established, transfers occur in about 2 or 3 business days. If scheduled in advance, McRae Capital can have it set-up so the funds arrive on a regular basis (i.e. monthly). This is a free service and the option we recommend when possible. Your signature is only required to establish the initial standing instructions.
- Bank Wire – A bank wire is an electronic transfer that occurs the same day it is requested. A fee of $15 to $30 is normally charged by the custodian, and an additional fee is often charged by the receiving bank. Bank wires are normally used when a transfer needs to happen immediately. Your signature is required.
- Paper Check – If requested, we can have a paper check sent to the address of record. There is no cost, but this method takes the longest. No signature is required.
The more advanced notice our clients can give about any cash requirements is extremely helpful so that we can make sure the funds are available in your account. If we need to raise funds by selling stocks or bonds, it can delay the process.
We at McRae take a great deal of care to ensure your cash needs are addressed quickly and safely. We take the time to verify that any transfer has truly been authorized by you and is correctly sent to the intended recipient.
Please contact us if you have further questions or need any assistance.
This article originally appeared as an email to McRae Capital’s clients. If you have any questions or concerns about Money Transfers, or anything else you would like to discuss with us, please don’t hesitate to give us a call.