Charles Schwab Bank Review: Checking and Savings
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Overall bank rating
4.5
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
Savings
Member FDIC
4.0
/5 NerdWallet ratingCharles Schwab’s High Yield Investor Savings® offers a relatively low annual percentage yield of 0.48%, but there are no monthly fees or minimum balance requirements associated with the account.
Still, most online banks pay more for savings.
» Want to compare rates? See our list of the best high-yield online savings accounts
Checking
Member FDIC
4.5
/5 NerdWallet ratingSchwab Bank 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 0.45% APY; it’s hard to find interest checking accounts with higher yields and no monthly fees or minimum requirements. But Schwab Bank pays a reasonable rate with no such requirements.
Schwab Bank 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.
» Want to see what the competition offers? Check out our picks for the best online checking accounts
Banking experience
4.0
NerdWallet ratingCharles Schwab Bank provides customer service through multiple avenues, including Twitter and 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.
To fund your accounts, you can set up direct deposit or transfer or wire money from an account at another institution or deposit a check via mobile check deposit. You can also convert your cash into a money order or check and send it in by mail.
Overdraft fees
4.5
NerdWallet ratingIf you overdraft, Schwab Bank may pull money from funds in your linked Schwab One brokerage account or your Schwab High Yield Investor 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 Bank 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. Many banks have eliminated these kinds of penalties, but some banks charge overdraft fees that cost as much as $36 each and as often as six times in a day.
Savings
Member FDIC
4.0
/5 NerdWallet ratingCharles Schwab’s High Yield Investor Savings® offers a relatively low annual percentage yield of 0.48%, but there are no monthly fees or minimum balance requirements associated with the account.
Still, most online banks pay more for savings.
» Want to compare rates? See our list of the best high-yield online savings accounts
Checking
Member FDIC
4.5
/5 NerdWallet ratingSchwab Bank 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 0.45% APY; it’s hard to find interest checking accounts with higher yields and no monthly fees or minimum requirements. But Schwab Bank pays a reasonable rate with no such requirements.
Schwab Bank 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.
» Want to see what the competition offers? Check out our picks for the best online checking accounts
4.0
NerdWallet ratingCharles Schwab Bank provides customer service through multiple avenues, including Twitter and 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.
To fund your accounts, you can set up direct deposit or transfer or wire money from an account at another institution or deposit a check via mobile check deposit. You can also convert your cash into a money order or check and send it in by mail.
4.5
NerdWallet ratingIf you overdraft, Schwab Bank may pull money from funds in your linked Schwab One brokerage account or your Schwab High Yield Investor 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 Bank 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. Many banks have eliminated these kinds of penalties, but some banks charge overdraft fees that cost as much as $36 each and as often as six times in a day.
How does Schwab Bank compare?
 LendingClub High-Yield Savings Member FDIC |  SoFi Checking and Savings Member FDIC |  Discover Bank Online Savings Member FDIC |
|---|---|---|
NerdWallet rating 4.5 /5 | NerdWallet rating 5.0 /5 | NerdWallet rating 5.0 /5 |
APY 4.00% With $0 min. balance for APY | APY 3.75% With $0 min. balance for APY | APY 3.30% With $0 min. balance for APY |
Bonus N/A | Bonus $250 Earn up to $250 with direct deposit. Terms apply. | Bonus $200 Requirements to qualify |
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.
