Charles Schwab Bank Review: Account Good for You?

Many people don't realize that the household name for investment brokerages also offers a couple of banking options. While their options are simple - just checking and savings, they do pack quite a punch. You'll have to be tech savvy as you can only access your funds online, which can make the task of making deposits interesting for some.

Charles Schwab does offer some beneficial bank account options that may help you save more than the penny or two that you'll save at your local bank.

If you're considering opening a personal checking or savings account, you must check out these promotions.

Services Offered

If you're looking for a wide selection of account options, you won't find them here. Charles Schwab keeps it simple with just a high-yield checking and high-yield savings account. Both accounts are strictly online, but if you have a branch near you (there are 340 in the United States), you can try to conduct your business there. Not all branches are capable of handling banking tasks, though.

You can open the high-yield checking account online in a matter of minutes. There is a catch, though. In order to open a checking account, you have to first open a Schwab One Brokerage account. You don't ever have to do anything with the account, but they make you open it and then automatically assign you a checking account with a separate account number.

In order to open the savings account, you have to download the application, complete it and mail it to Charles Schwab. It will take a little longer to get the account up and running since you have to wait for the snail mail, but the process is simple.

Compare Savings Account Promotions

HSBC Direct Savings - 2.30% APY
• Earn 2.30% APY on all balance tiers
• No monthly maintenance fee
• Minimum balance to earn APY is $1
• Member FDIC
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Online Savings Account - Earn 2.10% APY
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• No minimum opening deposit
• No monthly fee
• No minimum balance required to waive monthly fee

UFB High Yield Savings - Earn up to 2.45% APY
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• Earn 2.45% APY on balances of $10,000 and above
• Member FDIC

Compare Checking Account Promotions

Chase Total Checking® + Chase Savings℠
• Enjoy up to $350 when you open a new Chase Total Checking® account with Direct Deposit and/or open a new Chase Savings℠ account, deposit $10,000 or more in new money and maintain a $10,000 balance for 90 days
• Enjoy a $200 bonus when you open a new Chase Total Checking® account and set up direct deposit
• Enjoy a $150 bonus when you open a new Chase Savings℠ account, deposit a total of $10,000 or more in new money within 20 days, and maintain a $10,000 balance for 90 days
• Access to 16,000 Chase ATMs and nearly 5,000 branches
• Apply online in minutes. Open your account online now.
• Chase QuickPay® with Zelle® - Take the drama out of splitting a check.
• Real-time fraud monitoring - We watch your debit-card to help your money stay your money.
• Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
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HSBC Advance Checking - $350 Bonus
Get $350 when you open an Advance checking account, fund account with at least $5,000 in New Money in combined checking and savings accounts within 30 calendar days of account opening and maintain balance for 90 days AND set-up monthly direct deposits from a third party into the checking account for 3 consecutive months
• Offer expires July 31, 2019
• Deposit products are offered in the U.S. by HSBC Bank USA, N.A. Member FDIC.
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Expires 7/31/2019

Chase Premier Plus Checking℠
• Enjoy $300 as a new Chase checking customer, when you open a Chase Premier Plus Checking℠ account and set up direct deposit.
• Enjoy $300, more benefits, and earn interest on your new Chase checking account.
• The $25 Monthly Service Fee is waived when you keep an average beginning day balance of $15,000 or more in any combination of this account and linked qualifying Chase checking, savings and other balances.
• No Chase fee on first four non-Chase ATM transactions per statement period.
• Earn interest on your checking account balance.
• Access to 16,000 Chase ATMs and nearly 5,000 branches
• Apply online in minutes. Open your account online now.
• Available online nationwide except in Alaska, Hawaii and Puerto Rico. For branch locations, visit locator.chase.com.
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Reasons We Like Charles Schwab Bank

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• You don't have to pay any monthly fees. You might be able to find higher interest rates elsewhere, but you will be hard-pressed to find another online bank that doesn't charge monthly fees. The lack of fees can make up for the slightly lower interest rates.

• You don't need a minimum balance. It's always a nice feeling when you don't have to worry about carrying a minimum balance or risk getting charged a fee. Charles Schwab doesn't require a balance for either their checking or savings accounts.

• You can get your ATM fees refunded. If you've dealt with the frustration of getting charged to take your own money out of an ATM, you'll love Charles Schwab's ATM refund policy. If you withdraw the funds using your Schwab Visa debit card at an ATM that accepts the Visa debit card, Schwab will refund you the ATM fee. There is no limit on the number of refunds you can get either.

• You can make mobile deposits. Making deposits without a physical branch to visit might seem complicated, but Schwab makes it simple. After you open your account, apply for Schwab Mobile Deposit. Once approved, you take a picture of your check with your smartphone and upload it to the Mobile Deposit service.

• You get free standard checks and a free ATM card. Free standard checks and a free ATM card are two more ways you can save money with Charles Schwab's banking service.

• You can set up direct deposit for checking or savings. If you want to simplify the funds transfer process, set up automatic deposit into your checking or savings account. These deposits are available the same day, unlike ACH transfers from another bank.

• You can use Schwab's free bill pay service. Rather than transferring your funds here, there, and everywhere, you can take advantage of Schwab's free bill pay service. Paying your bills right from your high yield checking account can alleviate some of the headache of transferring funds.

• You can use contactless payments such as Apple Pay and Android Pay. Just link your checking account to the eligible device and you can easily and securely pay vendors and retailers.

• You have FDIC coverage. Your deposits (up to $250,000) are protected by FDIC insurance. This means should something happen to Charles Schwab Bank, your money is still safe.

• You can have free overdraft coverage. If you have available funds in an eligible Schwab brokerage or online savings account, Schwab will cover your overdrafts in your checking account at no charge. This isn't a green light to make overdrafts, but at least you know you have the coverage should it happen.

Reasons You May Want to Look Elsewhere

• Your deposits or money transfers can take a long time. During the first 30 days of owning the account, any checks you deposit that aren't cashier's checks or government-issued checks are held for five business days before the funds become available. Some deposits made with Schwab Mobile Deposit after the first 30 days may also be held for an extended period (Schwab notifies you of the exact waiting period after the deposit).

• You have to bank online even if you have a Charles Schwab bank in your area. The point of an online checking or savings account is for you to handle your transactions online. This decreases the amount of overhead required for the bank to offer these accounts, which results in higher interest rates. Not all Schwab branches have the ability to accept deposits or help with any banking transactions, leaving you to operate online.

• The only type of account you can open is checking or savings. The only two banking options you have are the checking or savings accounts, both of which offer minimal interest compared to other options, such as CDs. If you have long-term savings needs, you may want to look elsewhere to make more interest.

How it Compares

Charles Schwab Bank vs Ally: Schwab and Ally Bank both offer online banking, but the similarities end there. If you are looking for more than checking or savings, Ally Bank has more options, including money market accounts, CDs, and IRAs.

	Charles Schwab Bank	Ally Bank
	SPECIAL OFFER High Yield Investor Checking – Unlimited ATM Rebates - Learn More	SPECIAL OFFER Online Savings Account - Learn More
	Benefits and Features
Savings	0.50% APY	2.20% APY. No monthly service fee and no minimum deposit.
CD	Offers brokered CDs from other banks. Terms range from 1 month to 20 years. Minimum deposit of $1,000.	0.75% to 3.00% APY. Terms of 3 months to 5 years. 12-month CD APY of 2.60%. No minimum deposit to open.
Checking	0.40% APY, $0.01 account minimum	0.10% APY under $15,000; 0.60% APY $15,000 or more. No monthly service fee and no minimum deposit. Ally will refund ATM fees for other banks up to $10 per statement cycle.
Customer Service	24/7 Live Customer Service (Telephone and Chat)	24/7
ATMs	Unlimited ATM fee rebates when used with ATMs with the Visa, Interlink logo. Available worldwide.	Over 43,000 no-fee Allpoint ATMs
Locations	345 branches across the country. You may also open an account online.	Online Only
	High Yield Investor Checking – Unlimited ATM Rebates	Online Savings Account Interest Checking Money Market
Charles Schwab Bank: Pricing information from published website as of 6/13/2019. Ally Bank: Pricing information from published website as of 6/12/2019.

Charles Schwab Bank vs Capital One 360: Capital One 360 also offers more products than the Charles Schwab Bank offers. If you want more than checking or savings, you can open a money market or IRA account. They also have Capital One branches, known as cafés, located throughout the US.

You might also consider:

Wealthfront Cash Account - 2.51% APY
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• 2.51% APY
• FDIC insured up to $1 million
• $1 minimum

Smart Saver - Earn 2.14% Annual Yield
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Discover Online Savings - $150 Cash Bonus
Apply for your first Discover Online Savings Account by 7/1/19, 11:59 PM ET, online or by phone. Enter Offer Code CD619 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted by 7/15/19, 11:59 PM ET. Maximum bonus eligibility is $200.
Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded or affinity accounts provided by Discover. Account must be open when bonus is credited. Bonus will be credited to the account by 7/29/19. Bonus is considered interest and will be reported on IRS Form 1099-INT. Offer may be modified/withdrawn without notice. See advertiser website for full details.
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Expires 7/1/2019

Bottom Line

If you want to make a little more interest than your local bank offers and can manage your money online, Charles Schwab Bank can be a good option. If your goals are more long-term and you can tie your money up for a few months to a few years, you may want to look at other online options that offer CDs and money markets, as you can often get higher interest rates with those products.