How Do I Send a Check to Someone Online Using Vanguard?

Vanguard or VMI offers check writing services to its members. However, there are specific requirements that must be met to use this service. If members are eligible based on these requirements, they are free to write checks to anyone online.

Set Up Check Writing

Vanguard members who want to set up check writing services will need to complete an application and mail it to Vanguard. You will receive a checkbook in the mail within a few weeks after the application has been processed. However, Vanguard users should note that checkbooks won't be mailed until they have a balance in their Vanguard account. However, those with a balance will receive checks after their application has been processed. Members also have the option of linking their check account to their Vanguard account.

Check Writing Requirements

Check writing privileges are available to Vanguard members with select mutual fund and brokerage accounts. The minimum amount per check is $250. You can send checks to anyone online using the Vanguard check writing service. As checks clear, you have access to images of your processed checks in your transaction history on vangurad.com. Checks are considered drafts.

Vanguard Checks and Taxes

Members should note that their investments will continue to earn money until the checks you wrote clear. For tax purposes, checks are considered redemptions. You may need to report a percentage or all of your redemptions when you file your income taxes.

Which Vanguard Accounts are eligible for Check Writing?

Vanguard doesn't withhold federal, state, or local income taxes on the amount of the check. Also, check writing services aren't available for inherited IRAs. Check writing privileges are available to Vanguard members with IRA's that are:

1. Traditional
2. Rollover
3. Roth
4. SEP
5. SIMPLE