If you make a deposit by Check, Bill Pay, EFT, Direct Deposit or Wire Transfer we will deposit the funds into your account and notify you by email of the deposit. These funds will be invested in your sweep vehicle, generally on the next business day after deposit.
From Deposits: While you will generally be able to make an investment the day after a deposit is processed, you will generally not be able to withdraw the new deposit money from your account for five business days. Funds received through Bill Pay will not be available for withdrawal for 120 calendar days (excluding bank holidays).
From Securities Sales: When you sell securities that settle 2 days after trading (T+2) such as exchange listed equities, the sell amount cannot be withdrawn until the second trading day after the sell date. When you sell securities that settle 1 day after trading (T+1) such as most mutual funds, the sell amount cannot be withdrawn until the trading day after the sell date.
Purchases: Money deposited with us can generally be used to purchase exchange listed securities and mutual funds the day after your deposit is processed.
Sales: When you sell securities that settle 2 days after trading (T+2) such as exchange listed equities, you can generally use the sale proceeds to purchase T+2 securities as soon as that same day. When you sell securities that settle 1 day after trading (T+1) such as most mutual funds, you can generally use the sale proceeds to purchase T+1 and T+2 securities as soon as that same day.
Due to the differences in settlement timing between stocks (which settle two days after trade date) and most mutual funds (which settle one day after trade date), there are issues with selling mutual fund shares to buy stocks at the same time. For example, on a Monday morning you want place a window order to sell a stock, and use the cash proceeds from that stock sale to purchase a mutual fund. Unless you have a sufficient level of cash available for trading in your account to cover the entire cost for purchasing that mutual fund, this order will be rejected because of insufficient cash. The reason is that the cash proceeds from the sale of that stock will not be available until Wednesday, 2 business days after your trade is executed; however, you will have to provide sufficient cash to cover the cost of your mutual fund purchase on Tuesday, just 1 business day after the sell trade is executed.
Please keep in mind that additional withdrawal limitations apply for non-taxable accounts, such as IRAs.