Charles Schwab Bank Review: Account Good for You?

Charles Schwab is more than a brokerage. It also offers high yield checking and savings interest rates that might far surpass your local bank. Read on to learn the pros and cons.

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

Member FDIC

CIT Bank Savings Connect - 0.50% APY

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• Earn a competitive high yield savings rate with access and convenience features of an eChecking account.
• Earn up to 0.50% APY on Savings Connect and 0.25% APY on eChecking.
• Savings Connect is a tiered interest rate account dependent on the account holder opening a linked qualifying eChecking concurrently and makes periodic qualifying deposits.
  • Base Tier: (0.42% APY, 0.399% Interest Rate) A minimum qualifying deposit of $200 is not deposited each month into the linked eChecking or the eChecking account is closed.
  • Upper Tier: (0.50% APY, 0.499% Interest Rate) A qualifying deposit of $200 or more is deposited into the linked eChecking account each month.
  • APY assumes a qualifying deposit of $200 or more is made to the linked eChecking account each month.
• Minimum of $100 for both the Savings Connect and eChecking to open ($200 total).

Member FDIC

Online Savings Account - Earn 0.40% APY

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• No fees
• No minimum opening deposit
• No minimum balance required

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High Yield Savings

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• 0.61% APY on balance < $25,000
• 0.25% APY on balance $25K-$100K
• 0.15% APY on balance > $100K
• No minimum balance requirements
• No fees to open or maintain account
• Free ATM card upon request
• FDIC Insured

Compare Checking Account Promotions

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HSBC Premier Checking - $450 Welcome Deposit

Get $450 Welcome Deposit

Expires 8/31/2021

• Get a $450 Welcome Deposit for eligible new customers who open a new HSBC Premier checking account and complete the following qualifying activities.
• Open your new HSBC Premier checking account online by August 31, 2021; and
• Make recurring monthly Qualifying Direct Deposits totaling at least $5,000 from a third party to your HSBC Premier checking account(s) for 3 consecutive calendar months from the second full calendar month after account opening.
• You will automatically receive the $450 Welcome Deposit in your new HSBC Premier checking account approximately eight weeks after completing all qualifying activities. It's that simple.
• Deposit products are offered in the U.S. by HSBC Bank USA, N.A. Member FDIC.

Member FDIC

HSBC Premier Checking - Up to $600 Cash Bonus

Get up to $600 Cash Bonus

Expires 8/31/2021

• Get up to $600 with a 3% Cash Bonus Checking Offer when you open a new HSBC Premier checking account and complete the following qualifying activities.
• Open your new HSBC Premier checking account online by August 31, 2021; and
• Set up Qualifying Direct Deposits into your new HSBC Premier checking account; and then
• Enjoy 3% Cash Bonus, up to $600, on Qualifying Direct Deposits up to $100 per month, during the first 6 calendar months after account opening
• You will automatically receive the 3% Cash Bonus in your new HSBC Premier checking account approximately eight weeks after completing that month's qualifying activities.
• Deposit products are offered in the U.S. by HSBC Bank USA, N.A. Member FDIC.

Acorns Spend: $75 Bonus

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Expires in 3 days

• Setup Acorns Spend as your direct deposit method with your employer
• Receive 2 direct deposits of at least $250 / deposit
• $75 bonus will be deposited into your Acorns account within 45 days

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 - 0.50% APY - Learn More
	Benefits and Features
Savings	0.05% APY	0.50% APY
CD	Offers brokered CDs from other banks. Terms range from 1 month to 20 years. Minimum deposit of $1,000.	0.15% to 0.80% APY. Terms of 3 months to 5 years. 12-month CD APY of 0.55%
Checking	0.03% APY, $0.01 account minimum	0.10% APY under $15,000; 0.25% APY $15,000 or more
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 - 0.50% APY Interest Checking Money Market
Charles Schwab Bank: Pricing information from published website as of 07/23/2020. Ally Bank: Pricing information from published website as of 7/23/2021.

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:

Member FDIC

CIT Savings Builder - Earn 0.40% APY

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Earn up to 0.40% APY. Here's how it works: Maintain a minimum balance of $25k OR make at least a $100 minimum deposit every month. Member FDIC

High Yield Savings Account - Earn 0.30% APY

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UFB High Yield Savings - Earn up to 0.20% APY

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• Earn 0.20% APY on balances of $10,000 and above
• Member FDIC

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.