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Home Business

Charles Schwab Bank Review 2023

by GC Journalist
March 17, 2023
in Business
Reading Time: 27 mins read
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Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

How Charles Schwab Bank products compare

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Editor’s Rating

4.25/5

A five pointed star

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Editor’s Rating

4.5/5

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A five pointed star

Editor’s Rating

4/5

A five pointed star

A five pointed star

A five pointed star

A five pointed star

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Learn more


On Charles Schwab’s site. Charles Schwab, FDIC Insured

The bottom line: Charles Schwab is a strong bank for travelers, but if you’re looking for high interest rates, you’re better off with another online bank.

Overall bank rating

Pros and cons

Schwab Bank High Yield Investor Savings® Account


Annual Percentage Yield (APY)

0.48%


Minimum Deposit Amount

None

Charles Schwab Bank Schwab Bank High Yield Investor Savings® Account

Schwab Bank High Yield Investor Savings® Account


Annual Percentage Yield (APY)

0.48%


Minimum Deposit Amount

None

On Charles Schwab’s site. Charles Schwab, FDIC Insured


Schwab Bank High Yield Investor Savings® Account

Charles Schwab Bank Schwab Bank High Yield Investor Savings® Account

On Charles Schwab’s site. Charles Schwab, FDIC Insured

Details


Annual Percentage Yield (APY)

0.48%


Minimum Deposit Amount

None

Pros & Cons
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No opening deposit

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No minimum account balance

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No monthly service fee

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Comes with a debit card

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Unlimited out-of-network ATM fee reimbursements

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No foreign transaction fees

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24/7 online chat

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Low APY

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Limited customer service hours by phone

Highlights
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  • Access to over 400 branch locations
  • 24/7 online chat
  • No opening deposit, minimum account balance, or monthly fee

Schwab Bank High Yield Investor Savings pays 0.48% Annual Percentage Yield (APY) on your balance — this is higher than other brick-and-mortar banks, but many online banks pay significantly higher rates.

However, it doesn’t require an opening deposit, minimum balance, or monthly fee.

It’s also rare for savings accounts to come with an ATM card. Not only will Charles Schwab send you a debit card when you open a Schwab Bank High Yield Investor Savings® Account, but the bank reimburses 100% of ATM fees charged by ATM operators. The bank will not charge a foreign transaction fee if you use this debit card abroad.

Charles Schwab Bank Schwab Bank High Yield Investor Checking® Account

Schwab Bank High Yield Investor Checking® Account


Annual Percentage Yield (APY)

0.45%


Minimum Deposit Amount

$0

Charles Schwab Bank Schwab Bank High Yield Investor Checking® Account

Schwab Bank High Yield Investor Checking® Account


Annual Percentage Yield (APY)

0.45%


Minimum Deposit Amount

$0

Charles Schwab, FDIC Insured


Schwab Bank High Yield Investor Checking® Account

Charles Schwab Bank Schwab Bank High Yield Investor Checking® Account

Charles Schwab, FDIC Insured

Details


Annual Percentage Yield (APY)

0.45%


Minimum Deposit Amount

$0

Pros & Cons
Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

No opening deposit

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

No minimum account balance

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Unlimited out-of-network ATM reimbursements

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

No foreign transaction fees

Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Free overdraft protection

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Must also open a Schwab One brokerage account

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$25 overdraft fee if you don’t enroll in protection

Highlights
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  • 24/7 live online chat
  • No ATM network, but unlimited ATM fee reimbursements
  • Interest compounded daily, paid monthly
  • FDIC insured

Additional Reading
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Read our review

Read Our Review A looong arrow, pointing right

To open a Schwab Bank High Yield Investor Checking® Account, you must also have a Schwab brokerage account. The Schwab Bank High Yield Investor Checking® Account doesn’t require an opening deposit or minimum account balance, and there are no monthly maintenance fees.

Charles Schwab offers unlimited refunds for out-of-network ATM fees, and it doesn’t charge foreign transaction fees.

Charles Schwab Bank Charles Schwab Bank CD


Annual Percentage Yield (APY)

5.20% to 5.35%


Minimum Deposit Amount

$1,000

Charles Schwab Bank Charles Schwab Bank CD


Annual Percentage Yield (APY)

5.20% to 5.35%


Minimum Deposit Amount

$1,000

On Charles Schwab Bank’s website


Charles Schwab Bank CD

Charles Schwab Bank Charles Schwab Bank CD

On Charles Schwab Bank’s website

Details


Annual Percentage Yield (APY)

5.20% to 5.35%


Minimum Deposit Amount

$1,000

Pros & Cons
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Check mark icon A check mark. It indicates a confirmation of your intended interaction.

Ability to get competitive interest rates from different banks

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Variety of CD terms

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$1,000 minimum opening deposit

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Interest earned may vary depending on market risk/call risk

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Interest is not compounded

Highlights
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  • Through Schwab CD OneSource, you’ll choose from CDs at different financial institutions
  • Terms may range from 1 month to 20 years
  • No early withdrawal penalties, but if you need funds before your CD matures, Charles Schwab will sell the CD at the current market rate; the amount of accrued interest for a CD may vary
  • FDIC insured though Charles Schwab & Co., Inc

Charles Schwab’s CD offerings are different than what you’ll find with most banks. Charles Schwab has brokered CDs, meaning Charles Schwab doesn’t actually own the CD. Instead, Charles Schwab acts as the middleman for you and the bank that owns the CD.

By going through a third party like Charles Schwab, you can choose from an assortment of CDs at different banks while only dealing with Schwab, which makes things easier if that’s where you’re already banking or investing.

How Charles Schwab works

Charles Schwab is primarily known for its investment services, but it also offers banking products.

There are over 400 Charles Schwab locations across major US cities, and although you may be able to talk with a representative about your bank accounts, the branch locations are mainly for investment services, not banking services. You can do all your banking online, though, and the bank’s mobile app has received 4.8 out of 5 stars in the Apple store, and 3.2 stars in the Google Play store.

Charles Schwab pays low rates on its accounts, but the bank may be a good option for people who want to bank and invest with the same company, or for frequent travelers. Charles Schwab doesn’t have an ATM network, so it offers unlimited refunds for ATM fees worldwide, and it doesn’t charge foreign transaction fees.

Charles Schwab offers 24/7 online chat with customer service representatives. Or you can call an agent Monday through Friday, 7 a.m. to 11 p.m. ET, and weekends from 9a.m . to 10:30 p.m. ET. 

Your Charles Schwab Bank accounts are FDIC insured for up to $250,000, or $500,000 for joint accounts.

Is Charles Schwab Bank trustworthy?

Charles Schwab has received an A+ rating from the Better Business Bureau. A strong BBB rating signifies the company is transparent in how it handles business, responds effectively to customer complaints, and is honest in its advertising.

Not all national banks have good scores from the BBB. For example, Wells Fargo used to have an F, possibly due to its history of predatory lending to BIPOC customers and creating fake accounts — now it isn’t rated, because the BBB is assessing its profile.

Charles Schwab doesn’t have any recent public scandals, though, so you may feel secure about keeping your money with the company.

Charles Schwab Bank review vs. LendingClub review

LendingClub is a personal loan provider and online banking institution. Choosing between LendingClub and Charles Schwab may depend on which features you want to prioritize in a checking account.

The Schwab Bank High Yield Investor Checking® Account may be a better option if you want an interest-earning checking account. You’ll earn 0.45% APY with a minimum balance of $0.

If you want to earn cash back on an unlimited number of purchases, LendingClub’s account may be more appealing. If you can maintain at least $2,500 in your account, you can earn 0.10% APY and score 1% cash back on unlimited purchases.

Charles Schwab review vs. Capital One review

Capital One has some physical branch locations, and Capital One 360 is its online operation. Capital One pays a higher rate on its savings account than Charles Schwab. However, for CDs it could be a bit of a toss-up depending on your preferences.

Charles Schwab has brokered CDs, meaning Charles Schwab doesn’t actually own the CD. Instead, Charles Schwab acts as the middleman for you and the bank that owns the CD. Meanwhile, Capital One CDs pay higher interest rates than most brick-and-mortar banks and online banks.

Capital One has an ATM network, but it doesn’t reimburse fees. Capital One doesn’t charge a foreign transaction fee for its 360 accounts, but it does charge a fee for non-360 accounts. If you travel frequently, you still may want to go with Charles Schwab, since it reimburses ATM fees all over the world. 

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Laura Grace Tarpley, CEPF

Personal Finance Reviews Editor

Laura Grace Tarpley (she/her) is a personal finance reviews editor at Insider. She edits articles about mortgage rates, refinance rates, lenders, bank accounts, wealth building, and borrowing and savings tips for Personal Finance Insider. She was a writer and editor for Insider’s “The Road to Home” series, which won a Silver award from the National Associate of Real Estate Editors. She is also a Certified Educator in Personal Finance (CEPF).
She has written about personal finance for over six years. Before joining the Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU. You can reach Laura Grace at ltarpley@insider.com.
Learn more about how Personal Finance Insider chooses, rates, and covers financial products and services »


Evelyn He

Compliance Associate

Evelyn He is a Compliance Associate at Insider who supports the Personal Finance Insider team. Personal Finance Insider is Insider’s personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Insider readers already know and love.
The compliance team’s mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
Before joining Insider, she served in various legal and compliance roles in different industries, including the legal and pharmaceutical industries.   
Evelyn obtained her M.S. degree in Marketing at Boston University in 2022. Prior to combining and consolidating her knowledge of law and business, she spent one year finishing 1L courses at Suffolk University Law School to further her legal knowledge. She has also completed MBA business law courses while working on her Bachelor of Business Administration in Management at the University of Massachusetts, Amherst. 
Outside of work, she enjoys spending time with her 14-year-old Shih Tzu named Money, and her 4-year-old Bichon named Tibber.


Top Offers From Our Partners


UFB Preferred Savings


Earn up to 5.02% APY on your savings. No monthly maintenance fees. No minimum deposit required to open an account.

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Author

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    GC Journalist

    As the in-house writer for GallantCEO.com I prefer to remain anonymous as I do not seek anything from my writing only the self gratification of writing for a good cause such as this.

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