- No-fee services and products
- Investor savings account
- Individual retirement accounts
No-Fee Services and Products
Schwab Bank's main selling point is its no-fee account products and services. It offers a High-Yield Checking Account, High Yield Savings Account, Individual Retirement Account, Pledged Asset Loan and Home Equity Line of Credit with no fees to open or maintain and without hidden transaction fees.
High Yield Checking Account:
- Unlimited fee rebates from any ATM worldwide
- 0.06% APY variable interest rate on any balance
- Free bill pay on Schwab.com and Schwab Mobile
- Schwab Mobile Deposit™ to deposit checks from anywhere
- Free standard checks and a Visa® Platinum debit card once the account has been funded.
- FDIC insurance up to $250,000
- Link to Apple Pay™ to make purchases with iPhone® 6 or iPhone 6 Plus
The Schwab Bank High Yield Investor Checking account is only available when linked to a Schwab One brokerage account. The two accounts may be opened at the same time and will be linked, so customers can easily transfer funds between them to meet both their investing and checking needs. There is no obligation to use the Schwab One brokerage account, it just has to be an open account but customers can invest with Schwab brokerage at no additional cost.
Investor Savings Account
Whatever the account balance, this High Yield Investor Savings account offers:
- Minimum opening deposit: $0
- Monthly service charge: $0
- A competitive interest rate on any balance
- Easy to access, transfer and manage cash
- Unlimited fee rebates from any ATM worldwide
- Powerful mobile apps to access account or transfer money
- Ability to deposit checks from anywhere when accepted for Schwab Mobile Deposit™
- FDIC insured up to $250,000
- Direct deposit to deposit all, or a portion of paycheck or Social Security check
Individual Retirement Accounts
- Immediate tax benefits or tax free withdrawals, depending on your IRA
- Access retirement planning tools and resources
- 24/7 service and support
- No service fees
- No fees to open or maintain an account. Other account fees, fund expenses and brokerage commissions may apply.
Charles Schwab bank also offers no-fee loans for varying purposes:
Pledged Asset Line® (PAL)
Schwab offers customers an immediate, flexible, non-purpose line of credit that leverages the value of their investments. This line of credit (PAL) can be used for anything from existing property renovation, real estate investments or to expand one's business.
Schwab Bank's HELOC program is provided by Quicken Loans, the nation's largest online mortgage lender, offering:
- a 3.99% APR
- no prepayment penalties
- no balance requirements
- a quick closing period
Schwab Bank offers three types of college savings plans:
- 529 Plan: A state-sponsored, tax-deferred college investment account.
- Holders can contribute up to $70,000 ($140,000 per couple) per beneficiary in a single year.
- Free of federal income taxes when used for qualified education expenses.
- Average lifetime contribution limit of $365,000 on average.
- No age limit for beneficiaries
- ESA (Education Savings Account): An education savings account set up and managed by a parent or guardian for the benefit of a minor child.
- Contributions can be made until the beneficiary reaches age 18; funds must be distributed to the beneficiary by age 30
- Free of federal income taxes when used for qualified education expenses
- No lifetime contribution limit
- Custodial Account: A brokerage account that's managed by a custodian and can be used for college or any other purpose.
- Federal tax penalty upon withdrawal
- no contribution limit.
- Beneficiary must be under age 18
ESA and 529 College Savings accounts have many advantages over custodial, general brokerage, and savings accounts. Any earnings in 529 plans and ESAs are free from federal income tax as long as they're used to pay for qualified education expenses. So the investment can grow faster than it would in a taxable account.
No ATM Fees
Schwab Bank does not charge any ATM fees and reimburses any ATM fee customers are charged worldwide. This means in situations that an ATM charges a fee, i.e. $3, customers can select 'Yes' and Schwab bank will refund that charge to their account. Any ATM fees charged by ATM operators will be refunded in the same month when using the Schwab Bank Visa® Platinum Debit Card.
Schwab prides itself on seeing itself through clients' eyes-serving driven, motivated people who believe that personal engagement, a sense of ownership, and a commitment to investing gives them control over their financial futures.
The Bank serves its clients with:
- More than 325 branches. Clients not served by a local branch can partner with one of Schwab's Financial Consultants at its National Branch. These National Branch Consultants offer the same services as those in the physical branches, just over the phone.
- Approximately 1,200 financial consultants
- $192.8 billion enrolled in advisory solutions
- 100,000+ financial plans provided to date