I have been assured that the transition to Schwab will be seamless. I hope so.
My brokerage account automatically sweeps cash into a UATXX Money Market fund, which earns considerably better returns than a cash account. As I examine the transition documents, I find that Schwab does not normally offer that option. From Schwab: "Generally, only Managed Accounts, International Accounts, some Benefit Plan Accounts, and Other Retirement Accounts continue to be eligible for the Money Fund Sweep feature. With respect to other Accounts, please note the following: Accounts opened on or after June 1, 2016, and Accounts that did not have the Money Fund Sweep feature as their Cash Feature as of that date, are ineligible to select the Money Fund Sweep feature."
Has this been raised with Schwab? Are USAA accounts moving to Schwab going to be set up the same way as they were at USAA? If not, why not?
I did get a quick reply, but it only restated what was already in the April 8 letter I received. What I want to know is whether a money market option -- like UATXX -- will be offered by Schwab to USAA brokerage accounts that transition. Will I be able to sweep cash into a money market account the way I have with my USAA account? If not, why not?
I got another reply, but it really didn't answer my original question about sweep accounts either. I am going to assume USAA has little visibility into what Schwab intends to do with our accounts once they've transferred, and probably isn't very interested. As @The Real Dr. B. mentioned, we can opt out of the conversion to Schwab, and the latest USAA reply had this info, which was useful -- Schwab will also waive transfer fees for up to a year:
"You have the right to opt out of the conversion of your account to Schwab. To opt out, you must take action by Wednesday, 5/20/2020. USAA will not charge account transfer or termination fees through 5/20/2020. If you consent to the conversion and later decide to transfer your account to another broker-dealer, Schwab will waive the transfer fees for up to a year after the conversion."
Just as an FYI, you have the option to choose another brokerage company. I have a Schwab broakerage account for my "play-play slush fund" money but my real investments are done in my Vanguard account. Because of this I am having things converted over to my Vanguard account instead of my Schwab account. I do not know if you have a brokerage account with any other company, but it might be something to consider.