Are you ready to take control of your money and access the cash you have available in your Vanguard account? Let's get started! This comprehensive, step-by-step guide will walk you through the entire process of withdrawing cash from your Vanguard account, whether you're using the website or the mobile app.
Step 1: Determine Your Available Cash
Before you can withdraw, you need to know how much cash you actually have. Don't worry, this is easier than it sounds.
Log in to your Vanguard account: Go to the official Vanguard website or open the Vanguard mobile app and log in with your credentials.
Navigate to your account dashboard: Once logged in, you'll be taken to your main account dashboard. Here, you'll see a summary of all your accounts.
Locate your 'Cash' or 'Settlement Fund': This is the key. Your available cash is typically held in a designated "Settlement Fund" or "Cash" account. This is the money that's ready to be withdrawn or used for new investments. You'll see a balance for both your "Total Cash" and your "Available Cash."
Total Cash is the total amount of money you have in your cash account.
Available Cash is the amount you can actually withdraw right now. The difference between the two might be due to recent deposits that are still on a hold period or pending transactions.
Pro-Tip: A recent deposit via electronic bank transfer (ACH) or check might have a holding period of several business days to a week. This is a security measure to prevent fraud. You can usually see these pending transactions in your transaction history.
Step 2: Initiate the Withdrawal
Now that you know how much you can withdraw, let's get the process going.
On the Website:
From your account dashboard, look for a "Transfers," "Move Money," or "Withdraw" option. It's often found in a navigation menu or as a button on your cash account summary.
Select "Withdraw" or "Transfer to bank."
Choose the source account: This will be your Vanguard Cash Account or Settlement Fund.
Choose the destination account: This will be your linked external bank account. If you haven't linked a bank account yet, you'll need to do that first. We'll cover that in a moment.
Enter the amount you wish to withdraw.
Review the details of the transaction. Make sure the amount and the destination account are correct.
Confirm the withdrawal. You may need to enter a security code sent to your phone for verification.
On the Mobile App:
Tap on your account to view the details.
Look for a button or menu option that says "Move Money" or "Withdraw."
Select the Vanguard account you're withdrawing from and the linked bank account you want to send the money to.
Enter the amount and confirm the details.
Complete any security verification steps.
Step 3: Link a Bank Account (If You Haven't Already)
To withdraw money, you need a place to send it! This is a one-time setup process.
Log in to your Vanguard account on the website.
Go to your "Profile & Account Settings" or a similar section.
Find the option to "Update Bank Information" or "Link External Account."
You'll need your bank's routing number and your checking or savings account number.
Follow the on-screen instructions to verify your bank account. This often involves a small deposit and withdrawal of a few cents, which you'll need to confirm in your bank's transaction history. This verification process is for your security and can take a few business days.
Step 4: Understand the Timeline
Once you've submitted your withdrawal request, the waiting game begins. But don't worry, it's usually a quick process.
Electronic Bank Transfer (ACH): This is the most common method and typically takes 1 to 3 business days for the funds to arrive in your linked bank account. This is a reliable and free method.
Wire Transfer: For larger amounts or if you need the money urgently, a wire transfer is an option. It's usually faster, often arriving within the same or the next business day, but it may incur a fee. Vanguard may charge a fee for wire transfers, and your bank might also charge a fee to receive one. It's wise to check Vanguard's commission and fee schedule for the most up-to-date information.
Step 5: Monitor Your Transaction
You can track the progress of your withdrawal to see when it's been processed by Vanguard and when it has been sent to your bank.
On the website or app, go to the "Transactions" or "Cash statement" section.
You'll see your withdrawal listed with a status, such as "Pending" or "Completed." Once it's "Completed," the funds have been sent to your bank.
Important Note: If you need to sell investments (like mutual funds or ETFs) to generate cash for withdrawal, you must first place a sell order. The proceeds from the sale will settle in your cash account, and then you can initiate the withdrawal. The settlement period for stock and ETF trades is typically two business days (T+2). So, if you sell on a Monday, the cash will be available on Wednesday.
10 Related FAQ Questions
How to check if my bank account is linked to Vanguard?
You can check your linked bank accounts by logging in to your Vanguard account, navigating to your "Profile & Account Settings," and looking for the "Bank Information" section.
How to sell my investments to get cash for withdrawal?
To sell investments, log in to your account, select the investment you want to sell, and choose the "Sell" option. Enter the number of shares or the dollar amount you want to sell and confirm the order.
How to set up a regular withdrawal from Vanguard?
Vanguard offers an "Automatic Withdrawal Plan" (AWP). You can set this up online to automatically withdraw a fixed amount on a regular schedule (e.g., monthly, quarterly) and have it transferred to your linked bank account.
How to find my Vanguard account number?
Your Vanguard account number can be found on your account statements, on the "Overview" screen when you log in to your account online, or in the "My Profile" section of the website.
How to use a wire transfer for a faster withdrawal?
To initiate a wire transfer, you will likely need to contact Vanguard directly by phone. Be prepared to provide your account information and the details for the receiving bank, including the routing number and account number. Be aware of any associated fees.
How to know if there are any fees for withdrawing?
Vanguard generally does not charge a fee for standard electronic bank transfers (ACH). However, they may charge fees for wire transfers or for closing an account and transferring all assets. Refer to Vanguard's official commission and fee schedules for a complete list of charges.
How to access my money from a Vanguard retirement account (e.g., IRA)?
Withdrawing from a retirement account like an IRA has different rules and potential tax implications. If you are under the age of 59½, you may face penalties and taxes on the withdrawal. You will need to select "Access my money" or "Loans and withdrawals" from your account dashboard to see your options.
How to withdraw from a Vanguard 401(k) or employer-sponsored plan?
For employer-sponsored plans like a 401(k), the withdrawal process is often managed through your employer's plan administrator. You'll need to contact them or log in to the specific plan portal to understand the rules and initiate a withdrawal.
How to resolve an error message when trying to withdraw?
If you encounter an error message, first double-check that you have sufficient "available cash" and that your linked bank account is verified and correct. If the problem persists, contact Vanguard's customer support for assistance.
How to find out if a deposit is still on hold?
You can view the status of recent deposits in your transaction history. The transaction will typically show a "pending" or "on hold" status with a release date. You can only withdraw funds that have cleared the holding period.