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Charles Schwab Bank relies on excellent customer service and rare perks, like unlimited worldwide ATM fee reimbursement, to draw in customers. It shares some similarities with online and brick-and-mortar banks, but its APYs unfortunately take after the latter. But it still has a lot to offer, as outlined in our Charles Schwab Bank review below.
Charles Schwab Bank's deposit accounts don't have monthly maintenance fees. Additionally, its savings and checking accounts include ATM cards -- with unlimited ATM fee reimbursements worldwide. The bank has also been recognized for its excellent customer service. It's a great fit for those who already invest with Charles Schwab and want to keep all their money in one place.
Charles Schwab Bank offers a single checking account option.
The Schwab Bank High Yield Investor Checking account comes with its own linked Schwab One® brokerage account. Each has its own separate account number. However, you can conveniently view both accounts and transfer funds between them via Charles Schwab Bank's online and mobile account management tools. The Schwab Bank High Yield Investor Checking account offers unlimited ATM fee rebates worldwide. It also carries no foreign transaction fees.
In addition, this checking account earns interest. Most checking accounts don't offer interest at all, so it's a nice bonus. Since Charles Schwab Bank has no monthly maintenance fees and provides rebates for ATM fees, all of the interest you earn is yours to keep. You can only make money with this account.
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Schwab Bank High Yield Investor Checking
This free checking account is available to Schwab brokerage customers. Schwab offers unlimited domestic and international ATM reimbursements. Schwab also doesn't charge a foreign transaction fee (which can be 1% to 3% of transaction cost). In addition, there is no minimum deposit requirement and no minimum balance requirements.
We recommend comparing checking account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
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Charles Schwab Bank also offers a single savings account.
The Schwab Bank Investor Savings™ account has no minimum balance requirements and no monthly maintenance fees. It's also one of the few savings accounts that includes an ATM card. Charles Schwab Bank doesn't charge ATM fees, and it'll reimburse you for any ATM fees you incur anywhere in the world. This is a great choice if you don’t want to worry about sticking to a particular network.
Consumers should know its APY is on par with brick-and-mortar banks and significantly lower than high-yield online savings accounts. Don't expect to earn a lot of money in interest with this account. The APY is a flat rate for all clients, so you can't earn any bonuses for keeping large sums in the account either.
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
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Charles Schwab doesn't issue certificates of deposit (CDs) itself. Instead, it gives its customers access to a marketplace of brokered Charles Schwab CD, including some less common options, such as callable CDs. You must be a Schwab customer and log into your online account to view all available terms and APYs. There's a good mix of terms ranging from one month to 10 years. Generally, its APYs are on par with today's top-paying CDs, though some terms have much higher rates. All Schwab CDs have a $1,000 minimum investment. Compared to competitors, that's fairly reasonable. However, if you'd like to contribute more, you must do so in $1,000 increments.
CDs in Charles Schwab's marketplace don't penalize you for early CD withdrawals. If you need to take your money out early, Charles Schwab Bank will help you sell your CD at the current market price. Keep in mind that there's always the possibility of taking a loss when selling CDs early (even if the bank doesn't penalize you).
Charles Schwab Bank has excellent CD rates. For comparison, here's how it stacked up against other banks.
Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
---|---|---|---|---|
Member FDIC.
| APY: 5.10% | Term: 10 Months | Min. Deposit: $0 | |
Member FDIC.
| APY: 4.70% | Term: 1 Year | Min. Deposit: $2,500 | |
APY: 5.05% | Term: 1 Year | Min. Deposit: $1 | ||
APY: 5.15% | Term: 9 Months | Min. Deposit: $1 | ||
Member FDIC.
| APY: 4.75% | Term: 1 Year | Min. Deposit: $500 |
Charles Schwab Bank earned the highest score in the 2023 J.D. Power Direct Banking Satisfaction Study. The organization also maintains an A+ rating with the Better Business Bureau.
Customers are often more inclined to criticize a bank's customer service than to praise it. When you see high ratings like these, it's usually a good indication that a bank is doing something right. Customer service isn't always a major consideration for customers. But if excellent customer service is important to you, move Charles Schwab Bank up on your list.
If Charles Schwab Bank isn't the right home for your money, one of these other banks might suit you better.
EverBank (formerly TIAA Bank) is similar to Charles Schwab Bank in many ways. Both blend some of the features of online and brick-and-mortar banks, and they both offer brokerage services, retirement accounts, and other investment tools. EverBank's Basic Savings Account and money market account offer competitive APYs, though you may be able to find higher elsewhere. Customers can also open a high-yield checking account with EverBank, which offers more competitive rates than Charles Schwab Bank.
TD Bank offers a wide range of personal banking and investment products. It's a better choice for those who want to do all of their banking in one place. TD Bank offers several relationship benefits, including higher APYs for customers with large balances and multiple accounts. This bank also offers checking account bonuses to increase its appeal to new customers.
Charles Schwab Bank is a good choice for you if:
Charles Schwab has a variety of financial products, from credit cards to home loans. The following are some of its key offerings.
Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
Learn more about how The Motley Fool Ascent rates bank accounts.
Yes, by all accounts, Charles Schwab is a safe bank. It is the eighth-largest bank in the U.S. by assets ($7.05 trillion), the largest publicly traded brokerage, and is FDIC insured.
You can use any ATM in the world with a Charles Schwab card. In addition, Charles Schwab Bank will reimburse you for any ATM fees you incur.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
For rates and fees for the American Express Platinum Card® for Schwab, click here