Charles Schwab High Yield Investor Checking® Account Review

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The Charles Schwab High Yield Investor Checking® Account doesn't have the best APY, but it's garnered a lot of attention due to its lineup of freebies like no foreign transaction fees and ATM fee reimbursements. It's a no-brainer for those who are considering investing with Schwab because you can manage all your funds in one place. Learn if this is the right checking account for your with our detailed review.

We are committed to full transparency as part of our mission to make the world smarter, happier, & richer. You should know that offers on The Ascent may be from our partners - it's how we make money. That transparency to you is core to our editorial integrity, which isn’t influenced by compensation.

Top perks

Unlimited ATM fee reimbursements: The Charles Schwab High Yield Investor Checking® Account doesn't have a network of surcharge-free ATMs, but that's okay because the bank will reimburse you for any ATM fees you incur anywhere in the world. Few banks do this, so Schwab’s unlimited international ATM fee reimbursements make this account one of the top choices for frequent travelers.

No foreign transaction fees: $0 foreign transaction fees are a rarity for banking accounts, and this is a standout feature.

Outstanding customer service: Charles Schwab Bank received the 2019 J.D. Power U.S. Direct Retail Banking Award for its excellent customer service. That might not seem like a big deal, especially if you rarely contact your bank, but when you run into problems or questions about your account, quality customer support is invaluable.

Save and invest in one place: When you open a Charles Schwab High Yield Investor Checking® Account, you’ll also open a Schwab One® brokerage account. You'll have a single login for both accounts, so you can quickly transfer funds from one account to the other.

Access your funds wherever you go: Schwab Bank's mobile app enables you to transfer funds, remotely deposit checks, pay bills, view your transaction history, lock your debit card, and set up alerts to track your account activity. These features make it easy for you to manage your money even if you don't live near a Charles Schwab branch location.

What could be improved

APY: While Schwab Bank's APY is well above the industry average for checking accounts, it can’t keep up with some of the best checking accounts, a few of which offer higher APYs. Those who are hoping to grow their money may want to consider a different high-yield checking account or a high-yield savings account.

Fees

Charles Schwab High Yield Investor Checking® Account Monthly Maintenance ATM Withdrawal Overdraft Stop Payment Insufficient Funds
Fees $0 $0 $0 when funds are available from a linked Schwab savings or brokerage account $0 $25 per item, up to a maximum of $100 per day

How to access your money

Here's a closer look at how you can deposit and withdraw funds from your Charles Schwab High Yield Investor Checking® Account.

Deposit options

You can deposit money into your Charles Schwab High Yield Investor Checking® Account using any of the following methods:

  • ACH transfer
  • Wire transfer
  • Transfer from linked Schwab One® brokerage account
  • Mailed check
  • Mobile-deposited check

Note that if you choose to fund your account via wire transfer, the bank you're transferring funds from may charge you an outgoing wire transfer fee. Check with your bank to see what it charges for this. If you'd rather avoid this fee, stick to the other deposit methods listed here.

Withdrawal options

Use any of the following methods to withdraw money from your Charles Schwab High Yield Investor Checking® Account:

  • ACH transfer
  • Wire transfer
  • Requesting a mailed check
  • ATM cash withdrawal
  • Point-of-sale withdrawal

If the ATM you use charges fees, Schwab Bank will reimburse you for them at the end of the month. In the meantime, you'll have a reduced balance, so plan accordingly to avoid overdrawing your account.

Online checking account comparison

The TIAA Bank Yield Pledge® Checking Account is worth a closer look if you like Schwab Bank's ATM reimbursements but are hoping for a higher APY. It offers an industry-leading rate for the first year, and then the rates drop. However, they still remain higher than what Schwab Bank offers. TIAA Bank also reimburses account holders for ATM fees if they use an out-of-network ATM.

The Axos Bank Rewards Checking Account is another appealing option due to its high APY. Unlike the TIAA Bank Yield Pledge® Checking Account, the Axos Bank Rewards Checking Account doesn't drop your interest rate after the first year. Axos Bank offers unlimited domestic ATM fee reimbursements, but it doesn't pay for foreign ATM fees.

Rates as of Jan. 16, 2020
Offer
Charles Schwab High Yield Investor Checking
 
Member, FDIC
TIAA Bank Yield Pledge® Checking
 
Member, FDIC
Axos Bank Rewards Checking
 
Member, FDIC
Rating
Rating image, 4.5 out of 5 stars.
Rating image, 4.0 out of 5 stars.
Rating image, 4.5 out of 5 stars.
APY

APY: 0.15%

APY: 1.01% (intro rate)

APY: Up to 1.25%

Best For

Best For: No foreign transaction fees

Best For: High intro APY and ATM fee reimbursement

Best For: High APY and unlimited ATMs

Min. to earn APY

Min. to earn APY:

Min. to earn APY:

Min. to earn APY:

Next Steps

This checking account is right for you if:

The Charles Schwab High Yield Investor Checking® Account is a smart choice if you’ve already invested with Schwab and like the idea of managing your money all in one place. It's also a great fit for the world traveler who wants to avoid common checking account fees.

This account’s APY isn't the highest, but it's still well above the national average. Plus, with all of its convenient mobile and online tools, as well as its exceptional customer service, the Charles Schwab High Yield Investor Checking® Account still has plenty of appeal.

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