Review
Updated
Fact Checked
Nathan Alderman
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.
2024 Award Winner
Charles Schwab Bank
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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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.
Pros
- No monthly maintenance fees
- Unlimited ATM fee reimbursements worldwide
- Great customer service
- Free linked investment account with checking account
Cons
- Low APYs
- No relationship benefits
Charles Schwab Bank checking account review
Charles Schwab Bank offers a single checking account option.
Schwab Bank High Yield Investor Checking
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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Ratings Methodology
Rates as
of Apr 26, 2024
2024 Award Winner
Schwab Bank High Yield Investor Checking
Member FDIC.
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Best
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= Excellent
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= Good
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= Fair
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= Poor
= Best
= Excellent
= Good
= Fair = Poor
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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![]()
![]()
![]()
![]()
= Best
![]()
![]()
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= Excellent
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= Good
![]()
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= Fair
![]()
= Poor
= Best
= Excellent
= Good
= Fair = Poor- Competitive APY
- No foreign transaction fees
- No monthly maintenance fees
- Unlimited ATM fee reimbursements worldwide
- Great customer service
- Free linked investment account with checking account
- Higher APY available at other financial institutions
- Physical locations for investment services
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.
Checking account comparison
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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| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0%
Min. to earn: N/A
|
Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
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Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0.50%
Rate info
You can earn the maximum savings APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
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Cash bonus up to $300 with direct deposit set up (see details when you click 'Open Account')
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Rating image, 4.25 out of 5 stars.
4.25/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
0.40% (up to 3.30%)
Rate info
To earn the full APY, account holders must do all of the following: Receive monthly direct deposits totaling more than $1,500; make 10 transactions a month with your Axos debit card, or sign up for Axos's Personal Finance Manager; maintain an average daily balance of $2,500 per month in an Axos Invest Self Directed Trading Account; and use your Rewards Checking account to make your full monthly Axos Bank consumer mortgage, personal, or auto loan payment.
Min. to earn: Monthly direct deposits totaling at least $1,500
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Use promo code AXOS300 and apply by June 30th, to earn up to a $300 bonus!
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Charles Schwab Bank savings account review
Charles Schwab Bank also offers a single savings account.
Schwab Bank Investor Savings™
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.
High-yield savings account comparison
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.
Show Best Offers Available in
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
|
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 4.60%
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
|
New customers can earn up to a $300 bonus with qualifying direct deposits!
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Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
5.05% APY for balances of $5,000 or more
Rate info
5.05% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000 for max APY
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N/A
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Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
4.35%
Min. to earn: $0
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New customers can earn a $200 bonus with a minimum $25,000 qualifying deposit. Terms apply.
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Charles Schwab Bank CD accounts
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).
Compare CD rates
Charles Schwab Bank has excellent CD rates. For comparison, here's how it stacked up against other banks.
Rates as of April 25, 2024
| 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 customer service and experience
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.
Alternatives to Charles Schwab Bank
If Charles Schwab Bank isn't the right home for your money, one of these other banks might suit you better.
EverBank
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
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.
Is Charles Schwab Bank right for you?
Charles Schwab Bank is a good choice for you if:
- You already invest or are interested in investing with Charles Schwab.
- You want easy access to your funds without being limited to a single ATM network.
- You travel and want to save money on ATM fees.
- Great customer service is important to you.
Other products by Charles Schwab Bank
Charles Schwab has a variety of financial products, from credit cards to home loans. The following are some of its key offerings.
Charles Schwab credit cards
- Schwab Investor Card® from American Express: Earn 1.5% cash back on everyday purchases and use your earnings to invest within your Schwab account.
- American Express Platinum Card® for Schwab: With an annual fee of $695, (see rates and fees) this card can pack a hefty punch for investors. The card earns between 1 and 5 points on everyday spending and has a hefty welcome offer (terms apply).
Charles Schwab mortgages
- Home loans: Charles Schwab Bank offers fixed-rate, adjustable-rate, and interest-only homes loans with a variety of term lengths.
- Refinance: You can get a cash out refinancing loan for home improvement projects or to lower your monthly mortgage payment.
- HELOCs: Charles Schwab can help you open a line of credit based on your equity.
Our bank and credit union methodology
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.
FAQs
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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.
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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.
Our Banking Experts
Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.
Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.
Fact Checked
Nathan Alderman
Nathan Alderman has worked with The Motley Fool since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As The Ascent's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.
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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.
Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Ally is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. SLM is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Synchrony Financial is an advertising partner of The Ascent, a Motley Fool company. Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Axos Financial, Charles Schwab, Goldman Sachs Group, PNC Financial Services, and Target. The Motley Fool recommends Barclays Plc and Discover Financial Services and recommends the following options: short June 2024 $65 puts on Charles Schwab. The Motley Fool has a disclosure policy.
For rates and fees for the American Express Platinum Card® for Schwab, click here