Schwab Bank Investor Checking Account
Schwab Bank Investor Checking Account
The Schwab Bank High Yield Investor Checking Account is a fairly unique product offering an interest bearing checking account and the automatic opening of a Schwab brokerage account.
The account has no account minimums or monthly maintenance fees, yet you can access the features you would expect with a typical checking account including easy mobile payments, online or app account management, and no foreign transaction fees. This makes it a solid product, but is it the right checking account choice for you?
Here we’ll delve into the features of this account in more detail to help you to make an informed decision.
Here are the main features to know about the Schwab Bank High Yield Investor Checking® Account:
You can receive a variable APY on your checking account balance, so any funds you leave in your account can attract interest.
This account also provides the opportunity to hold a brokerage account. Schwab will automatically open a linked account and you won’t need to pay any opening or maintenance fees.
You can also transfer money between your brokerage and checking account or vice versa with no fees.
Schwab Bank also offers a free bill payment service with this account. You simply need to notify Schwab who you make your payments to and how much is needed each month.
Schwab will automatically send an electronic payment before the due date, or for those not equipped for electronic payments, they will mail a check on your behalf.
The Schwab app features Mobile deposit, which facilitates easy check deposits. You simply need to enter a few basic details and snap a picture of the front and back of the check.
This is a useful feature, since you can’t simply pop into a branch to pay in any checks you receive.
One of the most appealing features of this account is that you’ll never incur a fee to access your cash. Most banks charge a fee when you use a machine outside of its network, and you’ll also likely be hit with a fee from the ATM owner.
However, with this account, Schwab will refund all ATM fees that you may incur without any limits. So, you can use any ATM, even international ATMs and Schwab will refund your ATM fees.
Is Schwab Bank Checking Account Good?
There is no easy answer as to whether this account is “good.” As with any banking product, there are both positives and negatives associated with the Schwab High Yield Investor Checking Account.
So, we’ll look at the pros and cons in a little more detail.
Not Really High Yield
Saving and Investing in One Place
Limited Banking Product Line
Superb Customer Service
We’ve already discussed the fact that you’ll not incur any ATM fees, but this account also has limited fees in other areas.
You can enjoy stop payments, overdraft transfers, electronic funds transfers and more free of charge.
However, there are some exceptions, so do check the full terms and conditions.
When you open your account, you’ll automatically have a brokerage account opened, with a single login for both accounts.
This makes transfers simple and quick, so if you’re a newbie, you can start to dabble in investing needing to open an account with an investing platform.
Your new Schwab account is covered with the same FDIC protection as you would get with a traditional bank account.
This means that should the financial institution fail, you’ll have coverage for up to $250,000 per depositor.
Schwab Bank received the highest J.D Power score for U.S Direct Banking Satisfaction in 2023, in addition to multiple reviews on its high-quality customer service.
This means that you can be assured of superb customer service should you run into any issues or have questions about your account.
It can be easy to miscalculate payments or have a misstep which causes you to go overdrawn, but this account has Overdraft Assist, which means that there is no overdraft fee if you are overdrawn by $50 or less.
While the account is called a high-yield account, the rates offered with this account don’t really compete with the rates offered by several online banks.
There are other banks offering higher checking accounts interest rate.
If you’re interested in moving all of your banking activity to another financial institution, you may find the product selection at Schwab a little limited.
Since Schwab has a brokerage focus, there are only a couple of conventional banking products.
While Chase has a large ATM network, if you don’t have one in your local area, you could end up incurring out of network fees.
Unlike some of the other Chase checking accounts, you’ll not be reimbursed for these fees.
Which Type of Customer is Best Suited to the Schwab?
The Schwab High Yield Investor Checking Account is a good option if you already have money invested with Schwab and are keen to manage your money in one place.
However, this account is also a good option for those who regularly travel and want to avoid the common fees, such as ATM fees when they are away from home.
You may also want to consider it if you are new to investing and want an interest-bearing checking account that also provides an investment account with no opening balance requirements.
This means that you can simply move money across to your brokerage account to start trading without needing to build up a massive fund first.
Is Schwab a Good Bank to Work With?
Schwab Bank has a decent reputation within the industry, as we touched on above, it received great praise in the 2023 J.D Power satisfaction survey.
However, the comments on consumer review sites, such as Trustpilot, are a mixed bag. There are some comments praising the bank and its services, while others complain about poor service and technical issues.
In terms of products, Schwab has an adequate selection of banking products, with at least one product in each category. However, if you’re the type of person who likes a choice of different products, you may find the product line lacking.
How to Open a Schwab Checking Account?
You can open this account online by visiting the Schwab.com website. You can find the banking products in the Banking and Borrowing section from the top navigation bar. From this point, you’ll need to click on the “checking” link and you can begin your application.
- Click Apply: The product page provides all of the pertinent details about the high yield investor checking account, and you’ll also find an “Apply” button.
- Select Sole or Joint Account: The first screen in the application process is to choose whether you want to open a sole or joint account. You’ll then be directed to a confirmation screen, and you’ll need to click the green “Get Started” button.
- Complete the Application: This is a fairly standard application form and you’ll need to fill in all of the mandatory fields including your name, address, contact details, date of birth and Social Security Number.
- Create Your Login: The next screen is to create your account login details. This includes creating an ID, password and security question.
- Security Check: Schwab Bank will then need you to confirm the details for a security check. This can be done via SMS or email.
- Review and Accept: The final stage of the application is to review all the account details and submit your application.
Yes, as of December 2023, this account is interest bearing with the current rate set at 0.45%.
There is the option to enter a promo code on the application page, but there are no specifics about the details of the promotion.
There are two ways to close your account. You can either visit a local branch and speak to a representative or call the customer support helpline.
In either case, the Schwab team can walk you through the closure request process and let you know what information is needed and what you’ll need to do to confirm the closure.