Overview: Charles Schwab Checking Account Review | What You Should Know about Schwab Bank
When you hear the name “Charles Schwab,” you likely think first of investing. But did you know that Charles Schwab also offers banking services? This article will give an overview of Charles Schwab checking account reviews and features to see if this investment giant might just be the right bank for you and your family.
Schwab Bank rose out of the ashes of the dot-com bubble bursting; the company needed to diversify in order to survive, so in 2001, Schwab Bank was born.
Today, you can open checking and savings accounts with Schwab, take out a mortgage, and even use your invested assets as collateral for a revolving line of credit — all with the same company that holds your investments.
Talk about one-stop shopping.
Image Source: Charles Schwab Review
In this Charles Schwab checking review, we will look at the checking account’s features, fees, reviews, and how to open a Charles Schwab checking account. By the end, you should have a feel for whether or not Schwab Bank can meet your checking needs.
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Charles Schwab Checking Account Review: Features
Before we get into the detailed Charles Schwab bank review, here’s a quick rundown of the many perks Schwab Bank checking account holders can enjoy:
- Overdraft protection
- No minimums
- Free checks
- 0.06% APY (annual percentage yield) variable interest rate on any balance
- Unlimited ATM fee reimbursements
- Revolving line of credit
- Free bill pay
- FDIC insured
- Brokerage accounts with no fees or minimums
This list combines attractive features that you can’t always find all at one institution. Added to the fact that this checking account is held by your investment broker means that you can get a good snapshot of your financial life with just one simple log-in.
Let’s dig into our Charles Schwab bank review to get the inside scoop on some of these features.
No ATM Fees Overseas
This account is a dream come true for those who love traveling overseas. There is something disheartening about coming home to your bank statement after a trip abroad and realizing that all the ATM fees you paid could have gone toward a great souvenir or a fabulous dinner out — instead of being swallowed in currency conversion fees.
Most U.S. banks charge 1% to 3% for every ATM withdrawal when you are out of the country. To make things even worse, there is usually an additional ATM fee of $3 to $5 on the foreign exchange fee.
As we did our Charles Schwab High Yield Checking review, we found that the account doesn’t charge currency conversion fees, and you get reimbursements for all your overseas ATM charges. The same reimbursements apply to all ATM charges within the U.S.
Looks like five-star dining on your next big trip!
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Free Visa and Free Standard Checks
The Charles Schwab checking account comes with a free Visa platinum debit card, which comes with no fee on either the original debit card or the replacement (U.S. delivery only).
In the many Charles Schwab debit card reviews that we read, people seem to really like the fact that it includes assistance on travel and emergency services, price protection, and warranty management.
One reviewer on CreditKarma.com stated that “The debit card comes with high daily limits ($1000 ATM withdrawals, $15000 purchases), but you can call to have them lowered for security reasons.” This shows that Charles Schwab understand your needs: both for greater access to your money and your desire for security by making this feature customizable.
Easy Accessibility Via Mobile App
Many Charles Schwab bank account reviews feature the easy usability and simple accessibility of the account via its mobile platform.
The app is available for both the iOS and Android users. As we did our research for this Charles Schwab bank review, we found that the bank provides envelopes with prepaid postage in case you’d prefer your check deposits mailed to you.
Again, Schwab Bank has the features you need and has anticipated the customization you desire.
Amazing Customer Care
Here’s a line we found in a Charles Schwab checking review, that might put your mind at ease: “I know I can call and get a customer service rep almost immediately.” If you’ve ever had to listen to loud, tinny hold music for an extended period of time, that is a wonderful bit of news.
Schwab checking reviews aren’t the only ones that agree with this top-notch customer service. The bank has received a number of awards appreciating its excellent 24-hour customer support. In the past years, the Charles Schwab bank has consistently received the Highest Investor Satisfaction Award.
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Interacts Well with Brokerage Services
The Schwab checking account is known for its outstanding brokerage services and lack of maintenance inactivity fees. From the many Schwab checking reviews, customers appreciate that the checking account interacts well with the brokerage services, allowing for easier buying and selling of stocks at subsidized trade rates.
The Schwab high-yield brokerage checking account, along with its Charles Schwab checking account review, is highly recommendable for anyone looking to make the leap from their current bank’s checking services.
FDIC Insured and Real Overdraft Protection
The Federal Deposit Insurance Corporation (FDIC) insures Schwab Bank accounts up to $250,000 (the federal limit for protection), which is just one of many reasons for you to feel safe leaving your money in Schwab’s capable hands.
Another layer of protection, the Charles Schwab Overdraft Protection, ensures that you aren’t charged to transfer money out of savings to cover an overdraft. For those who don’t opt-in, there is a $25 fee on a $100 incident per day.
Charles Schwab Bank Review: Fees
What kinds of fees should you expect to pay to receive all of these great features?
None.
According to our Charles Schwab checking account review, there are no regular maintenance fees with Schwab Bank checking accounts. You will never pay an annual fee or a monthly service fee. There’s not even a set account minimum.
Reviews
We’ve seen a few Charles Schwab bank reviews and Charles Schwab debit card reviews along the way so far, but what is the overall picture in these reviews?
The reviews on Schwab’s website tend to be very favorable: with just under a thousand reviews, the checking account scores 4.4 out of 5 stars, and 88% of reviewers would recommend the account to a friend.
But what about outside of Schwab’s realm of influence? What do customers on third-party websites say?
CreditKarma and WalletHub numbers are only slightly lower at 4 and 3.8 stars, respectively.
One 1-star reviewer at CreditKarma stated: “Super long hold time, low deposit limit. Be sure to check out their hold time and limits. However, on the same site, another reviewer said, “I don’t need to interact with them much, but when I do I know I will be able to reach them and they will be able to quickly address my issue. I can’t ask for much more.”
This review from a WalletHub user paints quite the rosy picture:
“I originally opened this checking account to be able to easily withdrawal funds from my schwab brokerage account, and it has slowly turned into my everyday checking account. The overall fee schedule is wonderful and transparent, you easily avoid a monthly fee and I get all my atm fees reimbursed.”
Every person’s experience is going to be a little different, and while not all banks are for everyone, the majority of Charles Schwab checking account reviews point to Schwab being a good choice.
Setting up a Charles Schwab Checking Account
The process is straightforward and pretty fast. The only catch is that you’ll have to open a brokerage account, even if you don’t intend on using it, and you must go through a credit check.
Image Source: Charles Schwab Checking Account
Here are the steps required to open a Charles Schwab bank review account.
1. Visit the Charles Schwab website and click on High Yield Investor Checking Account, where you’ll provide all the necessary credit info, after which you wait for approval.
2. Once approved, do a test deposit into the pre-existing bank account linked to your application. You’ll then need to verify the amounts in the new account online by logging in and checking the amounts; then go back to your Schwab account and enter the deposited amount.
3. The test deposits aren’t done until you have them verified. It’s a simple process. Go to Accounts>>Transfers and Payments>>External Accounts>> Charles Schwab checking account>> Add External Account. You will then have the option to add a new account or verify deposits. Choose Verify Deposits and you’re done.
4. The next step is to request a debit card. This is only possible once you’ve deposited money from your linked account into the new account. You can do this via the Online Transfer tab.
5. When you receive your card, set a pin that’s easy to remember. Should you lose the pin, the customer service is just a phone call away (+1 866-855-9102). Once you’ve transferred money into your account, you’re good to go. That’s it.
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Final Thoughts
When it comes to Charles Schwab high yield checking reviews, it seems that users get to enjoy both worlds of personal banking and investments. The bank embraces personal investment and believes that investing is more than a business – it’s more of a passion and purpose.
Based on Charles Schwab bank reviews, it is unquestionably popular: it boasts of more than 1.6 million banking accounts and about 1.1 million retirement plan participants.
Well, with 100% reimbursable ATM charges, who wouldn’t want to be part of the Charles Schwab community? So, if you aren’t yet a member, don’t be left out and sign up for a Charles Schwab high yield checking account.
The aim of the bank is to turn earners into owners by unlocking your potential for growth.
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