Charles Schwab Bank Review: Great Checking and Fee-Free Accounts
Written by
Caitlyn Moorhead
Edited by
Amber Barkley
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GOBankingRates Score
Charles Schwab Bank
-
Checking Accounts
4.9
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Savings Accounts
4.5
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CD Accounts
4.4
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Banking Experience
4.8
Pros
- No-fee checking and savings accounts
- Unlimited global ATM fee rebates
- No foreign transaction fees
- No account minimum balance requirements
Cons
- Limited account lineup
- Low APY compared with many other banks
- Not ideal for those who need to deposit cash
- No free ATMs
Charles Schwab Bank Overview
Charles Schwab Bank is owned by Charles Schwab Corporation, a multinational financial services company best known for its investment services. Its roots date to 1963, when three partners launched an investment advisory newsletter. Eight years later they formed a broker-dealer, but the firm didn’t take the Schwab name until 1973.
Since then, Charles Schwab has emerged as one of the low-cost leaders in the brokerage industry, ultimately offering the first commission-free exchange-traded funds in 2009. Now, GOBankingRates has ranked Charles Schwab Bank as having one of the Best Checking Accounts of 2024.
Charles Schwab Bank: Key Features
Charles Schwab Bank Bank offerings are designed to be tied in with Charles Schwab investment accounts and thus aren’t quite as extensive as those available at more traditional banks. It has several key features to offer account holders.
Checking Accounts
Charles Schwab Bank offers a single checking account that’s designed to facilitate the transfer of funds between the checking account and a Schwab brokerage account. Here are some key takeaways:
- There’s no monthly service fee or minimum balance with the Schwab Bank Investor Checking account.
- There are also no foreign transaction fees and customers are reimbursed for ATM fees worldwide.
- This is an interest-bearing account that pays an APY of .
- Customers get a contactless debit card, mobile wallet and account access through the mobile app.
- GOBankingRates has ranked the Schwab Bank Investor Checking account as one of the Best Checking Accounts of 2024.
Savings Accounts
Charles Schwab Bank has a single savings account: Schwab Bank Investor Savings. Like the checking account, this savings account has no monthly service fee or account minimum. The APY is higher than many standard bank savings accounts but lower than most high-yield accounts.
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Customers get a contactless debit card, mobile wallet and mobile app. Charles Schwab also offers remote check deposits and though it has no free ATMs in its network does offer unlimited ATM fee reimbursement worldwide.
CD Accounts
Charles Schwab offers CDs through its brokerage division rather than Charles Schwab Bank. These brokered CDs are not held in a brokerage account. Instead, the account stays with the original bank that issued them.
CD terms at Charles Schwab are available from one to 18 months with an above-average APY. All CDs come with FDIC insurance through the banks that offer them.
Banking Experience
Charles Schwab Bank may not have physical branches for customers to visit, but its customer service is top-notch. Here are some banking experience features to consider when opening an account:
- It earned the highest rating from J.D. Power and Associates for overall satisfaction among checking providers.
- The mobile app can be used to view balances, buy and sell investment products, deposit checks and more.
- Ratings for the mobile app are varied, with an average rating of 2.5 out of five on Google Play and 4.8 out of five on the App Store which leaves a somewhat mixed message as to how its mobile app performs for the financial products you use.
- Banking and investment customers use the same app, and most reviews seem to be from investment customers.
- Brokerage customers at Charles Schwab can also benefit from having linked checking and savings accounts, which makes transfers faster and easier.
- Fees are nearly nonexistent with Charles Schwab Bank accounts, and there are numerous benefits attached to opening them.
How Does Charles Schwab Bank Compare?
Before deciding on a bank, it’s always a good idea to see how it stands up against the competition. Whether you want credit cards with interest rates, advisory services or solid annual percentage yields, or APYs, the Charles Schwab Bank offers everything from highly rated checking accounts to the Schwab One Brokerage Account.
Charles Schwab Bank vs. Ally Bank
Ally Bank offers a no-fee savings account that pays a higher APY than the APY available on the Charles Schwab Bank savings account. The online bank also gives customers tools like buckets to help them set and track savings goals.
Charles Schwab Bank has the edge for its checking account. Ally’s Interest Checking account has an APY of only and limits ATM reimbursements to $10 per month.
Charles Schwab Bank vs. Chase
Chase has an edge over Charles Schwab Bank when it comes to branches and products. The bank has with more than 4,700 branches located nationwide. Customers can choose from a variety of different checking accounts and savings accounts.
However, Chase accounts come with a monthly service fee that in most cases can be waived. Charles Schwab Bank’s unlimited global ATM fee reimbursement and lack of foreign transaction fees make it a better choice for travelers.
Final Take
Charles Schwab Bank is not the one-stop shop many customers look for in a financial institution. Without opening an account with Schwab’s brokerage division, your accounts there are limited to one checking account and one savings account.
However, those accounts can be very useful for a certain type of customer, and it is best for those who travel abroad. The Schwab debit card has no foreign transaction fees, and ATM fees are reimbursed around the globe with no limit. The bottom line is those perks, plus fee-free checking and savings accounts, make Charles Schwab Bank an enticing choice and was named among the Best Checking Accounts for 2024 by GOBankingRates.
Charles Schwab Bank FAQ
Here are the answers to some commonly asked questions about Charles Schwab Bank.- Does Charles Schwab have ATMs?
- Charles Schwab Bank doesn't have its own network of ATMs, but it does offer free unlimited ATM access at any ATM in the world.
- Can I use Zelle with Charles Schwab?
- Yes, Charles Schwab lets customers send and receive money with Zelle.
- Is Charles Schwab trustworthy?
- Charles Schwab has been in business for nearly 50 years. For the last four years, it has earned the highest score for customer satisfaction in J.D. Power and Associates' annual ranking of financial institutions. It also has a rating of A+ from the Better Business Bureau.
- Is Charles Schwab good for beginners?
- Charles Schwab's award-winning customer service gives beginners plenty of support. Representatives are available via phone, live chat and at local branches. Customers also have access to the online library featuring FAQs.
- Is Vanguard or Charles Schwab better?
- Vanguard does not offer checking, savings or CD accounts like you can get at Charles Schwab. Like Schwab, Vanguard has robo-advising and advisor-directed services for investment customers. If you're looking for more than an investment account, Charles Schwab may be a better fit.
- Does Charles Schwab have high fees?
- Schwab's checking and savings accounts have no fees or minimum balance requirements. Customers don't pay a foreign transaction fee when they use their debit card abroad, and they receive reimbursement for any ATM fees incurred.
John Csiszar contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Dec. 28, 2023.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
To determine rankings for the Best Checking Accounts, GOBankingRates looked at the following factors from all banks (excluding neobanks): (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) monthly checking fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); (5) APY on the checking account; (6) overdraft fee amount; (7) the average mobile app rating between the Google Play (Android) and Apple app stores. All factors were then scored and combined, with the lowest score being the best. Factors (1), (2) and (5) were weighted 0.5 times, and factor (4) was weighted 1.5 times.
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