Charles Schwab Bank Review: Checking and Savings

Schwab Bank is best for consumers who want a stellar interest checking account with free use of any ATM and don’t need to deposit cash often.

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Overall bank rating

Schwab Bank
  • Savings

  • Checking

  • Banking experience

  • Overdraft fees

4.5

NerdWallet rating 

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®
Schwab Bank High Yield Investor Savings®

Savings

Member FDIC

4.0

/5
 NerdWallet rating 
APY
0.43%
With $0.01 min. balance for APY

Charles Schwab’s High Yield Investor Savings® offers a relatively low annual percentage yield of 0.43%, 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

Schwab Bank High Yield Investor Checking®
Schwab Bank High Yield Investor Checking®

Checking

Member FDIC

4.5

/5
 NerdWallet rating 
APY
0.40%
With $0 min. balance for APY
Monthly fee
$0
Overdraft star rating
4.5/5

Schwab 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 0.40% 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 rating 

Charles 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 rating 

If 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.

Schwab Bank High Yield Investor Savings®
Schwab Bank High Yield Investor Savings®

Savings

Member FDIC

4.0

/5
 NerdWallet rating 
APY
0.43%
With $0.01 min. balance for APY

Charles Schwab’s High Yield Investor Savings® offers a relatively low annual percentage yield of 0.43%, 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

How does Schwab Bank compare?

NerdWallet rating 

4.5

/5
NerdWallet rating 

5.0

/5
NerdWallet rating 

5.0

/5

APY

3.25%

With $0 min. balance for APY

APY

3.25%

With $0 min. balance for APY

APY

3.00%

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.