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Charles Schwab Bank is one of the best banks for international travelers, because it doesn't charge foreign transaction fees. It also refunds all fees charged by ATMs worldwide. But if you want to earn high interest rates, you're better off looking elsewhere.
Charles Schwab Bank Review: Overall Rating
| Feature | Personal Finance Insider rating (out of 5) |
| Savings | 3.75 |
| Checking | 4.5 |
| CD | 4 |
| Trustworthiness | 4 |
| Total | 4 |
Charles Schwab Bank Pros and Cons
| Pros | Cons |
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About Charles Schwab Bank
Charles Schwab is primarily known for its investment services, but it also offers banking products.
There are over 300 Charles Schwab locations around the US. Although you may be able to talk with a representative about your bank accounts, the physical 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 2.5 stars in the Google Play store.
Charles Schwab offers 24/7 customer support via online chat with customer service representatives. Or you can call an agent Monday through Friday, 4 a.m. to 8 p.m. ET, and weekends from 6 a.m. to 7:30 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.
Charles Schwab does have a recent controversy, though. In 2022, Charles Schwab paid $187 in a settlement with the Securities and Exchange Commission. The SEC claimed three Schwab investment subsidiaries invested clients' money in ways Schwab's data showed would likely be less profitable for the customers, without telling the customers. Charles Schwab neither confirmed nor denied these allegations, but the company did settle.
Charles Schwab Bank FAQs
Yes, although Charles Schwab is primarily known for its investment services, it is a legitimate bank. Charles Schwab Bank has FDIC insurance and an A+ from the Better Business Bureau.
Yes, you can open a checking and savings account directly with Charles Schwab Bank.
Charles Schwab is a good institution to avoid bank fees, such as overdraft, ATM, foreign transaction, and monthly service fees. But it isn't the best option if you want to earn high interest rates on your accounts.
The main benefits of Charles Schwab banking are that it doesn't charge foreign transaction fees, and it reimburses ATM fees worldwide. It also provides multiple types of overdraft protection.
Charles Schwab Bank Account Reviews
Schwab Bank High Yield Investor Savings Account
no monthly service fee
0.15%
$0
- No opening deposit
- No minimum account balance
- No monthly service fee
- Comes with a debit card
- Unlimited out-of-network ATM fee reimbursements
- No foreign transaction fees
- 24/7 online chat
- Low APY
- No way to deposit cash
Charles Schwab Bank is one of the best banks for international travelers, because it doesn't charge foreign transaction fees. It also refunds all fees charged by ATMs worldwide. But if you want to earn high interest rates, you're better off looking elsewhere.
Schwab Bank High Yield Investor Savings® Account- 24/7 online chat
- No opening deposit, minimum account balance, or monthly fee
- Member FDIC
The Schwab Bank High Yield Investor Savings® Account has a $0 minimum deposit and no monthly service fee.
It's also rare for savings accounts to come with a debit card. Not only will Charles Schwab send you a debit card with your 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 your card abroad.
The account pays 0.15% APY (Annual Percentage Yield) on your balance — this is roughly the national average for savings accounts, and the best online banks pay significantly more.
Schwab Bank High Yield Investor Checking Account
no monthly service fee
0.05%
$0
- No opening deposit
- No minimum account balance
- Unlimited out-of-network ATM reimbursements
- No foreign transaction fees
- Free overdraft protection
- No way to deposit cash
Charles Schwab Bank is one of the best banks for international travelers, because it doesn't charge foreign transaction fees. It also refunds all fees charged by ATMs worldwide. But if you want to earn high interest rates, you're better off looking elsewhere.
- 24/7 live online chat
- When you open a checking account, you automatically open a Charles Schwab brokerage account, too
- No ATM network, but unlimited ATM fee reimbursements
- Interest compounded daily, paid monthly
- FDIC insured
When you open a Schwab Bank High Yield Investor Checking® Account, you automatically open a brokerage account, too. The Schwab Bank High Yield Investor Checking® Account has a $0 minimum opening deposit and no monthly service fee. It pays 0.05% APY — while this is a nice perk, the best high-yield checking accounts pay significantly more.
Charles Schwab offers unlimited refunds for out-of-network ATM fees, and it doesn't charge foreign transaction fees.
Charles Schwab Bank CDs
4.19% to 4.60%
$1,000
- Ability to get competitive interest rates from different banks
- Variety of CD terms
- $1,000 minimum opening deposit
- Interest earned may vary depending on market risk/call risk
- Interest is not compounded
Charles Schwab CD rates are much higher than the national average. They're brokered CDs, which means you can open accounts with different institutions and sell them if you need access to your money early. In some cases, CD rates through Charles Schwab are even higher than the best CD rates at traditional banks and credit unions — but unlike traditional CDs, brokered CDs don't compound interest. This could limit your earning potential.
Charles Schwab CD- Through Schwab CD OneSource, you'll choose from CDs at different financial institutions
- Terms may range from 1 month to 20 years
- No early withdrawal penalties, but if you need funds before your CD matures, Charles Schwab will sell the CD at the current market rate; the amount of accrued interest for a CD may vary
- FDIC insured though Charles Schwab & Co., Inc
Charles Schwab's CDs 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.
The good news is that Charles Schwab CD rates are some of the highest out there — the bad news is that brokered CDs don't compound interest, which could drastically affect how much you earn if you have a large balance.
When interest is paid, it goes straight into your Charles Schwab brokerage account.
How Charles Schwab Bank Compares
Charles Schwab Bank vs. Bank of America
Charles Schwab and Bank of America both offer investment and bank products. Bank of America savings rates are low, and you'll earn a higher rate with Schwab.
But you may prefer Bank of America for CDs — Bank of America CD rates are high on select terms. It also offers a 12-month no-penalty CD that pays 4.00% APY. Perhaps most importantly, it compounds interest on CDs, while Charles Schwab does not.
But Charles Schwab is better for international travelers. It doesn't charge foreign transaction fees, and it refunds ATM fees worldwide. Bank of America charges a 3% fee each time you use a debit card abroad, and 3% plus $5 when you withdraw money from a foreign ATM.
Charles Schwab Bank vs. Capital One 360
Capital One 360 is another great bank for international travelers. It doesn't charge foreign transaction fees, and it won't charge a fee at foreign ATMs. However, it doesn't refund any fees charged by foreign ATMs like Charles Schwab does.
Capital One savings rates are significantly higher than what you'll earn with Schwab. It pays 3.80% (rate as of 12/06/24) APY on all balances. Capital One also pays 3.50% to 4.00% APY on CDs, with interest compounding daily.
Why You Should Trust Us: How We Reviewed Charles Schwab Bank
To review Charles Schwab's checking and savings accounts, we used Personal Finance Insider's bank account methodology. To review its brokered CDs, we used our certificate of deposit methodology.
We evaluate the bank's ethics, security, miscellaneous features, customer service, and mobile apps when reviewing each account. Other factors considered depend on what type of account we're rating. For example, we look at overdraft fees for checking accounts, but interest rates for savings accounts and CDs.
We rate bank accounts on a scale of one to five stars. We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
