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Charles Schwab is primarily known for its investment services, but it also offers banking products.
Charles Schwab; Alyssa Powell/Business Insider
The bottom line: Schwab Bank High Yield Investor Checking® Account 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
FeatureInsider rating (out of 5)Savings4.25Checking4.5CD3Trustworthiness5Total4.25
Pros and cons
ProsCons
No foreign transaction fees
Unlimited out-of-network ATMs
No monthly service fees on savings or checking account
Low APY on savings accountBranches are mainly for investment services, so you need to be digitally savvy
Savings
Schwab Bank High Yield Investor Savings pays Schwab Bank High Yield Investor Savings® Account Annual 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.
Checking
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.
CDs
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.
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.
Meanwhile, the Schwab Bank High Yield Investor Checking® Account may be a better option if you want an interest-earning checking account. You’ll earn 0.40% APY with a minimum balance of $0.01.
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.
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.