Charles Schwab Bank Review: Checking and Savings
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Overall bank rating
Savings
Checking
Banking experience
Overdraft fees
4.0
The bottom line:
Charles Schwab may be known primarily as an investing platform, but it's also a bank that offers online checking and savings accounts. And the checking account in particular is excellent; it pays interest and comes with an outstanding ATM policy.
Best for: Those who want free use of ATMs all over the world and no monthly fees, aren’t concerned with getting the highest interest rates and don’t need to deposit cash.
Pros
- Unlimited fee rebates at ATMs worldwide.
- No monthly fees and no minimum balance requirements on checking or savings.
- Free overdraft transfers from linked accounts.
Cons
- No way to deposit cash directly.
- Savings interest rate is low for an online bank.
Full review
Schwab Bank High Yield Investor Savings®
3.5
NerdWallet ratingAPY
0.05%
With $0.01 minimum balance
Charles Schwab’s High Yield Investor savings isn’t flashy, but there are no monthly fees or minimum balance requirements associated with the account.
Schwab offers a relatively low annual percentage yield of 0.05%. Most online banks pay more for savings.
Best Bank or Credit Union for ATM Access
Schwab Bank High Yield Investor Checking®
4.5
NerdWallet ratingMonthly Fee
$0
APY
0.03%
With $0 minimum balance
Schwab has one of the best ATM fee reimbursement programs in the game, and the fact that it has no monthly fees or minimum balance requirements is a big bonus.
The account earns 0.03% APY; it’s hard to find interest checking accounts with higher yields and no monthly fees or minimum requirements. But Schwab pays a reasonable rate with no such requirements.
Schwab checking offers unlimited ATM fee reimbursements, domestically and abroad. It also doesn’t charge foreign transaction fees, making it one of the best banks to use if you’re traveling out of the country.
Banking experience
4.0
NerdWallet ratingCharles Schwab provides customer service through multiple avenues, including Twitter and 24/7 chat support. The bank’s phone support is available from 4 a.m. to 8 p.m. PT on weekdays and 6 a.m. to 7:30 p.m. PT on weekends. Its Android and iOS apps are favorably rated by customers.
You’ll have to convert your cash into a money order or check and send it in by mail or mobile check deposit.
Overdraft fees
3.5
NerdWallet ratingIf you overdraft, Schwab may pull money from funds in your linked Schwab One brokerage account or Schwab savings account, free of charge, if you set them up as sources for funds.
If you don’t have enough money in a backup account, Schwab may deny the overdraft transaction, and you could be hit with a $25 nonsufficient funds fee up to four times a day — that’s $100. Some banks charge as much as $38 per transaction, and as often as seven times a day.
Schwab Bank High Yield Investor Savings®
3.5
NerdWallet ratingAPY
0.05%
With $0.01 minimum balance
Charles Schwab’s High Yield Investor savings isn’t flashy, but there are no monthly fees or minimum balance requirements associated with the account.
Schwab offers a relatively low annual percentage yield of 0.05%. Most online banks pay more for savings.
Best Bank or Credit Union for ATM Access
Schwab Bank High Yield Investor Checking®
4.5
NerdWallet ratingMonthly Fee
$0
APY
0.03%
With $0 minimum balance
Schwab has one of the best ATM fee reimbursement programs in the game, and the fact that it has no monthly fees or minimum balance requirements is a big bonus.
The account earns 0.03% APY; it’s hard to find interest checking accounts with higher yields and no monthly fees or minimum requirements. But Schwab pays a reasonable rate with no such requirements.
Schwab checking offers unlimited ATM fee reimbursements, domestically and abroad. It also doesn’t charge foreign transaction fees, making it one of the best banks to use if you’re traveling out of the country.
4.0
NerdWallet ratingCharles Schwab provides customer service through multiple avenues, including Twitter and 24/7 chat support. The bank’s phone support is available from 4 a.m. to 8 p.m. PT on weekdays and 6 a.m. to 7:30 p.m. PT on weekends. Its Android and iOS apps are favorably rated by customers.
You’ll have to convert your cash into a money order or check and send it in by mail or mobile check deposit.
3.5
NerdWallet ratingIf you overdraft, Schwab may pull money from funds in your linked Schwab One brokerage account or Schwab savings account, free of charge, if you set them up as sources for funds.
If you don’t have enough money in a backup account, Schwab may deny the overdraft transaction, and you could be hit with a $25 nonsufficient funds fee up to four times a day — that’s $100. Some banks charge as much as $38 per transaction, and as often as seven times a day.
How does Schwab Bank compare?
Member FDIC | Federally insured by the NCUA | |
|---|---|---|
APY0.50% With $0 minimum balance | APY0.40% With $0 minimum balance | APY0.55% With $100 minimum balance |
BonusN/A | BonusN/A | BonusN/A |
RATING METHODOLOGY
NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, banking experience and overdraft fees. Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation. The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
