Charles Schwab review 2024: Low fee online banking, but limited product range
Charles Schwab Bank offers fee-free checking and savings accounts with unique perks for travelers and investors, though its interest rates fall short of other online banks.
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Writer, Fox Money
Sarah Li-Cain is a personal finance journalist with more six years of experience. Her work has been featured by CNN, Bankrate, USA TODAY Blueprint, Business Insider, CNBC Select, and Forbes.
Updated November 15, 2024, 12:54 PM EST
Written by
Editor
Gabriela Walsh is a Certified Educator in Personal Finance® and a personal finance editor at Red Ventures. Her previous work experience includes various editorial positions at FinanceBuzz. She combines her understanding of language and literature with her commitment to delivering content that empowers others to build healthy money management skills.
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Charles Schwab is one of America’s oldest financial institutions, offering both investment and banking services. While its checking and savings accounts have notable perks, you won’t find some common banking products like money market accounts and certificates of deposit (CDs).
Charles Schwab is worth considering if you’re looking for a bank to manage your complete financial picture. However, you may want to look elsewhere for the highest savings yields or access to physical branches.
Fox Money rating: 7.8/10
Charles Schwab Bank excels with worldwide ATM fee reimbursements and zero minimum balances, though its savings rates lag behind other online banks.
About Charles Schwab
Founded in 1975 as a discount brokerage, Charles Schwab started introducing banking products in the early 2000s. Today, the institution manages over two million banking accounts and 36 million brokerage accounts.
Pros
- No minimum balance requirements
- No monthly maintenance fees
- FDIC-insured accounts
- Worldwide ATM fee reimbursement
- No foreign transaction fees on debit purchases
Cons
- No cash deposit options
- Branches primarily serve investment clients
- Lower savings rates compared to other online banks
Charles Schwab rates and products
Charles Schwab Bank offers two banking products — a savings and checking account. While both offer decent features, their rates are lower than what you’ll find at other online banks.
Checking account
- Annual percentage yield (APY): 0.20%
- Minimum initial deposit: $0
- Monthly fees: $0
Schwab Bank’s Investor Checking™ account is one of the best free checking accounts for ATM fees. You’ll pay no fees at ATMs worldwide and receive unlimited fee rebates.
The account charges no overdraft fees and requires no minimum balance. Your balance earns 0.20% APY, and you won't be charged foreign transaction fees on international purchases.
While it may not be a downside for some, you can only send or receive domestic wire transfers with this account.
Opening a checking account automatically creates a linked brokerage account. This allows seamless transfers between banking and investments, though you’re not required to use the investment features.
While the APY isn’t the highest in the market, the combination of no minimum balance requirements and unlimited global ATM reimbursements could be worth it.
Savings account
- APY: 0.25%
- Minimum initial deposit: $0
- Monthly fees: $0
The Schwab Bank Investor Savings™ account mirrors the checking account’s fee structure — no monthly fees or minimum balance requirements. The 0.25% APY applies to all balances but falls below rates offered by competitors. If you want to maximize earnings on your deposits, you’ll want to look elsewhere.
That said, some features are worth looking at, like unlimited worldwide ATM fee reimbursement. Schwab’s mobile app lets you deposit checks, manage your account, and make transfers. Account holders will also get a Visa debit card — many savings accounts only offer one if you open a checking account.
New customers must complete a paper application by visiting a branch or mailing it in. Current Schwab customers can apply online using secure messaging.
Other Charles Schwab products and services
Aside from their checking and savings accounts, Charles Schwab also offers credit cards and loans. Customers can access mortgages and home equity loans through its partnership with Rocket Mortgage. Qualifying customers with a certain amount of qualifying assets with Schwab may be eligible for interest rate discounts.
The credit card lineup includes:
- Schwab Investor Card® from American Express
- The Platinum Card® from American Express Exclusively for Charles Schwab
Both cards integrate with Schwab’s investment accounts, offering unique rewards and benefits for Schwab customers.
Charles Schwab banking experience
Overall, Charles Schwab offers a user-friendly banking experience.
Online and mobile banking platform
You can easily navigate Schwab’s website to learn more about their banking products and the online application form. Each product page links to helpful resources — from debit card guides to FAQs and product specifications.
Their mobile app offers many useful features, including account management, mobile check deposit, Zelle integration for money transfers, budgeting tools, real-time alerts, and more.
iOS users are generally satisfied with recent app updates, though some report minor glitches. Android users give mixed reviews — they appreciate the banking features but note some investment-related difficulties.
Customer service
Charles Schwab offers several ways to reach representatives for support. You can call 24/7, though if you’re applying for a mortgage (or already have one), you’ll need to contact Rocket Mortgage instead. Existing customers can also log into their accounts and reach a representative through live chat.
Charles Schwab has an A+ rating from the Better Business Bureau, though customer reviews vary. Most negative feedback relates to brokerage services rather than banking.
Account security
Funds in your Charles Schwab savings and checking accounts are FDIC-insured up to $250,000 per account type, meaning your deposits are protected up to the insured amount if the bank fails.
The financial institution also has the Schwab Security Guarantee. If you face any financial losses because of unauthorized activity, Schwab guarantees it’ll cover them. Schwab will work with you when you notice suspicious activity in your accounts to determine how to proceed.
How Charles Schwab stacks up
Charles Schwab is one of many financial institutions offering no-fee checking and savings accounts. While several features stand out, it fails to offer more competitive rates like other online banks.
Charles Schwab vs. Ally Bank
Ally Bank offers higher interest rates than Charles Schwab and a larger suite of banking products. You can easily open an account online; their accounts don’t have monthly maintenance fees. Its mobile app is easy to use, and you can reach customer service using the same channels as Charles Schwab.
However, Ally Bank won’t reimburse you for international ATM transactions. Unless that’s an important feature, Ally Bank offers much of what Charles Schwab does, including the ability to open a brokerage account.
Charles Schwab vs. SoFi Bank
Like Schwab, SoFi Bank doesn’t charge monthly maintenance or overdraft fees. While you’ll need to open both a checking and savings account at the same time, you get the benefit of higher APYs.
When you use your debit card, SoFi will automatically round up your purchases and set them aside for savings. Plus, if you open an account and complete qualifying activities, you could receive up to $300 in bonuses.
Is Charles Schwab right for you?
Charles Schwab is a great fit for existing customers or those looking to easily transfer funds to and from their Schwab brokerage account. Frequent travelers can benefit from unlimited worldwide ATM fee reimbursements, though this perks holds less value if you primarily use credit cards abroad.
The bank also appeals to tech-savvy customers who prefer banking online. Plus, those who want to feel assured they can handle any banking challenges, even across multiple time zones, may appreciate the 24/7 customer service.
Still, Charles Schwab isn’t ideal for everyone. If you want to maximize your interest earnings, you’ll find higher rates at other online banks. Similarly, if you need a full range of banking products beyond basic checking and savings accounts, you’ll want to explore other options.
How we rated this bank
Every bank review we publish has undergone a rigorous editorial process to ensure accuracy and objectivity. Learn more about our methodology here.
Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.