Charles Schwab Bank relies on excellent customer service and rare perks, like unlimited worldwide ATM fee reimbursem*nt, 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
Member FDIC.
Charles Schwab Bank
Rating image, 4.50 out of 5 stars.
4.50/5Our 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
Bottom Line
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 reimbursem*nts 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 reimbursem*nts 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.
2024 Award Winner
Schwab Bank High Yield Investor Checking
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Member FDIC.
Rating image, 4.75 out of 5 stars.
4.75/5Our 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
Rating image, 4.75 out of 5 stars.
4.75/5Our 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
Read Review
APY
0.45%
Min. To Earn APY
$0.01
- Competitive APY
- No foreign transaction fees
- No monthly maintenance fees
- Unlimited ATM fee reimbursem*nts 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 reimbursem*nts. 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.
Compare checking accounts
We recommend comparing checking accounts to make sure you're getting the best fit for you. Here's a list of our favorite accounts.
Account | APY | Promotion | Next Steps |
---|---|---|---|
Open Account for Discover® Cashback Debit Member FDIC. Rating image, 5.00 out of 5 stars. 5.00/5Our 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. | 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') | Open Account for Discover® Cashback Debit |
Open Account for Axos Bank Rewards Checking Member FDIC. Rating image, 4.25 out of 5 stars. 4.25/5Our 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. | 0.40% (up to 3.30%) Rate infoTo 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 | Cash in on up to a $500 bonus† and up to 3.30% APY* with a new Rewards Checking account. Just use promo code RC500 before July 31. | Open Account for Axos Bank Rewards Checking |
Open Account for Quontic High Interest Checking Member FDIC. Rating image, 4.00 out of 5 stars. 4.00/5Our 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. | up to 1.10% Min. to earn: $1 | High APY when you complete 10 or more qualifying debit card purchases each month | Open Account for Quontic High Interest Checking |
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.
Compare savings rates
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
Account | APY | Promotion | Next Steps |
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Open Account for SoFi Checking and Savings Member FDIC. Rating image, 4.50 out of 5 stars. 4.50/5Our 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. | up to 4.60% Rate infoYou 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! | Open Account for SoFi Checking and Savings |
Open Account for American Express® High Yield Savings Member FDIC. Rating image, 4.00 out of 5 stars. 4.00/5Our 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. | 4.25% Rate info4.25% annual percentage yield as of July 12, 2024Min. to earn: $1 | N/A | Open Account for American Express® High Yield Savings |
Open Account for E*TRADE Premium Savings Member FDIC. Rating image, 4.50 out of 5 stars. 4.50/5Our 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. | 4.50% Min. to earn: $0.01 | N/A | Open Account for E*TRADE Premium Savings |
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 June 7, 2024
Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
---|---|---|---|---|
Discover® Bank CD Member FDIC. | APY:4.70% | Term:1 Year | Min. Deposit:$2,500 | Open Account for Discover® Bank CD |
Western Alliance Bank CD | APY:4.95% | Term:1 Year | Min. Deposit:— | Open Account for |
Western Alliance Bank CD | APY:5.00% | Term:9 Months | Min. Deposit:— | Open Account for |
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
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.