Charles Schwab has been a major player in the financial industry for over 50 years. What started as a small brokerage firm in 1971 has grown into a powerhouse, offering banking and investment services to millions of customers. Schwab currently manages over $10 trillion in client assets and has 36.7 million active brokerage accounts.
Most people recognize Schwab for its investment products, but the company also provides checking and savings accounts, credit cards, home loans, and financial planning services. With 24-hour stock trading, zero foreign transaction fees, and unlimited ATM reimbursements, Schwab continues to be a strong choice for both investors and everyday banking customers.
If you’re considering banking or investing with Schwab, this review covers everything you need to know—including its pros and cons, account options, fees, and how it stacks up against competitors.
How Charles Schwab Works
Charles Schwab is best known as an online brokerage, but it also offers banking services. While it doesn’t have its own network of ATMs, it reimburses all ATM fees worldwide, making it a great option for frequent travelers.
You can manage your accounts through the Schwab mobile app or website, and there are more than 400 Schwab locations across the U.S., though these primarily focus on investment services rather than traditional banking.
Schwab’s customer service is highly rated and offers multiple ways to get support. Hours for phone support are:
- Monday–Friday: 4:00 a.m. – 8:00 p.m. PT
- Saturday–Sunday: 6:00 a.m. – 7:30 p.m. PT
For those who prefer online assistance, Schwab provides 24/7 chat support through its website and mobile app.
Charles Schwab Pros and Cons
Before deciding if Schwab is the right fit, it’s important to weigh the benefits and drawbacks.
Pros
- Unlimited ATM Fee Reimbursements – Schwab doesn’t have its own ATMs, but it refunds all ATM fees worldwide.
- Interest-Bearing Checking Account – Earn interest on your balance, something many checking accounts don’t offer.
- No Foreign Transaction Fees – Ideal for international travelers, Schwab doesn’t charge extra for foreign purchases.
- No Monthly Service Fees or Account Minimums – You won’t have to worry about hidden costs or balance requirements.
- 24-Hour Trading – Schwab now allows 24/5 trading on S&P 500 and Nasdaq 100 stocks and ETFs, making it easier to react to market movements at any time.
- Strong Customer Service – Get 24/7 chat support and extended phone support hours throughout the week.
Cons
- Limited Physical Branches – While there are over 400 Schwab locations, they mainly cater to investment clients rather than banking customers.
- Brokerage Account Required – To access Schwab’s banking services, you’ll need to open a brokerage account.
- Below-Average Interest on Savings – Schwab’s savings APY lags behind top high-yield savings accounts.
- No Cash Deposits – Since Schwab is primarily an online bank, depositing cash isn’t an option. Transactions must be done through wire transfers or mobile deposits.
Charles Schwab Online Banking Services
Schwab isn’t just for investors—it also offers a full-service online banking experience with checking and savings accounts, credit cards, and home loans.
Checking Accounts
The Schwab Bank Investor Checking Account is a fee-free checking account with unlimited ATM reimbursements and no foreign transaction fees. It also earns interest, with a current APY of 0.45% (check Schwab’s website for the latest rate). The account is linked to a Schwab brokerage account, which is required to open one.
For security and convenience, the account includes card lock/unlock features, real-time transaction alerts, and travel notifications.
Savings Accounts
The Schwab Bank Investor Savings Account is designed for short-term savings. Like the checking account, it has no monthly fees and no minimum balance requirements. You can deposit checks through Schwab Mobile Deposit and access funds using a Schwab Bank Visa Platinum Debit Card. However, the interest rate on savings is lower than many high-yield savings accounts.
Certificates of Deposit (CDs)
Schwab offers Certificates of Deposit (CDs) through its Schwab CD OneSource® program, giving customers access to CDs issued by various FDIC-insured banks. These CDs provide a fixed rate of return and can be a suitable option for those looking for a secure way to earn interest.
Schwab CDs come with various terms, ranging from as short as one month to 20 years. Current APYs range from 4.28% to 4.65%, depending on the term and issuing bank. Since these CDs are brokered, they can be bought and sold through a Schwab brokerage account.
Credit Cards
Schwab offers two credit cards through American Express:
- Schwab Investor Card from American Express – Offers cash-back rewards and no annual fee.
- Schwab Platinum Card from American Express – Provides premium travel benefits and rewards that can be redeemed for investing.
Home Loans
Schwab partners with Rocket Mortgage to offer a range of mortgage products, including:
- Conventional and government-backed loans (FHA, VA, USDA)
- Home refinancing
- Home equity lines of credit (HELOCs)
With the Mortgage First Preapproval Program, you can get pre-approved before you start house hunting.
How to Deposit and Withdraw Money
Charles Schwab offers a number of ways for you to deposit and withdraw funds.
Deposits
There are numerous ways you can make deposits into Charles Schwab deposit accounts. You may transfer funds from a Schwab brokerage account or Schwab checking account. Another option is to set up direct deposit into your savings account.
In addition, you may use the Schwab Mobile Deposit feature to make a deposit from anywhere on your mobile device, mail a check to Schwab Bank, or request a wire transfer from a different financial institution.
Withdrawals
To withdraw money from a Charles Schwab account, you have two options. The cheapest and easiest option is ACH. All you have to do is fill out an Online Transfer form and choose the right destination account.
ACH withdrawals take one to two business days to process. If time is of the essence, you may be better off pursuing a wire withdrawal with the “Send a Wire” feature. Just keep in mind that you’ll have to pay a wire fee.
Charles Schwab Investing Products
Since Charles Schwab is known for its investment options, it only makes sense that we go over them. Schwab provides a range of investment options, making it a strong choice for both beginners and experienced investors.
With commission-free trading on most stocks and ETFs, a broad selection of mutual funds, and expanding cryptocurrency services, Schwab continues to be a competitive option for those looking to grow their wealth.
Cryptocurrency
Schwab is expanding into spot cryptocurrency trading in 2025, allowing customers to buy and sell digital assets directly. Previously, Schwab only offered crypto exposure through ETFs and mutual funds, but this new development gives investors more direct access to digital assets.
Investors will be able to trade popular cryptocurrencies like Bitcoin and Ethereum, offering greater flexibility for those interested in digital assets.
IRAs
Schwab offers several types of individual retirement accounts, including traditional IRAs, Roth IRAs, rollover IRAs, and custodial IRAs. Each account type provides tax advantages, depending on whether you want tax-free withdrawals in retirement or tax deductions on contributions. Investors can choose from a wide range of assets, including stocks, ETFs, bonds, and mutual funds, to build their retirement portfolios.
Mutual Funds
Schwab offers access to thousands of mutual funds, including its own Schwab Funds and Schwab Index Funds. Investors can also trade no-load, no-transaction-fee mutual funds through the Schwab Mutual Fund OneSource platform. This makes it easy to diversify across asset classes while minimizing costs.
Fixed Income Investments
Schwab provides a selection of fixed income investments, including U.S. Treasuries, municipal bonds, corporate bonds, and certificates of deposit. These options can help investors create a more stable portfolio with predictable income and potential tax advantages.
Exchange-Traded Funds
Schwab recently introduced the Schwab Core Bond ETF, an actively managed bond fund focused on U.S. debt securities. In addition to its own ETFs, Schwab provides access to thousands of third-party ETFs with commission-free trading.
Charles Schwab Margin Loans
Margin loans act as lines of credit. They can allow you to borrow against the securities you already have in your brokerage account. This can be a great way to increase your borrowing power so you can buy more securities.
Additionally, you may use the funds to cover short-term financial expenses that are unrelated to investing. The amount you can borrow with a margin loan will be based on the type of security and its particular requirements.
Charles Schwab Financial Planning
For professional guidance on how to manage your finances and meet your financial goals, financial planning from Charles Schwab might make sense. As a Charles Schwab client, you can enjoy a free financial plan that focuses on retirement.
If you’d like ongoing support from a Certified Financial Planner as well as digital planning tools and automated investing solutions, Schwab Intelligent Portfolios Premium may be worthwhile. In addition, you can work with a Financial Consultant, which is essentially a financial advisor, to create a financial plan and investment plan that’s ideal for your unique goals.
Charles Schwab Small Business Accounts
As a small business owner, you may benefit from several small business accounts with Charles Schwab. The bank offers a plethora of plans for all types of businesses, including 401(k)s and SEP IRAs for you and your employees.
With the Charles Schwab One Organization Account, you can enjoy no monthly services, low trade commission, and fast access to your money. Other small business solutions you can use to manage your business cash flow and cash investment include money market funds and CDs.
Charles Schwab Customer Service
Charles Schwab offers customer support to assist clients with their financial needs. Phone support is available Monday through Friday from 4:00 a.m. to 8:00 p.m. PT, and on weekends from 6:00 a.m. to 7:30 p.m. PT. For those who prefer online assistance, Schwab provides 24/7 chat support through their website and mobile app. This ensures that help is accessible whenever you need it.
Charles Schwab Banking App
Schwab Mobile is Charles Schwab’s mobile banking and investment app. You can download it on your iOS or Android device and enjoy convenient access to any Schwab account. The app allows you to transfer money between accounts, make mobile check deposits, and quickly glance at your balances and portfolio. It also comes with tools like online bill pay, security, and custom alerts.
Charles Schwab Reviews and Complaints
Charles Schwab has an A+ rating with the Better Business Bureau (BBB). However, it’s important to note that Schwab is not BBB accredited. Customer reviews on the BBB website present a mixed picture, with an average rating of 1.3 out of 5 stars based on 69 reviews.
Common concerns include issues with customer service and account management. For instance, some customers have reported challenges in reaching knowledgeable representatives and delays in response times.
On Yelp, reviews vary by location. Some branches receive positive feedback for their helpful staff and efficient service, while others face criticism for poor customer service and unresponsive management.
These reviews highlight that customer experiences with Charles Schwab can differ significantly based on the specific branch and individual circumstances.
How to Open an Account with Charles Schwab
Charles Schwab makes it fast and easy to open an account. You can go to the Schwab website and fill out an online application in 10 minutes or less. Another option is to call customer support at 866-232-9890. If you feel more comfortable opening an account in person, you can visit one of Schwab’s locations, which are limited and usually reserved for brokerage customers.
Alternatives to Charles Schwab
If you’re exploring options beyond Charles Schwab, several financial institutions offer competitive services that might align with your needs. Here’s a look at some notable alternatives:
Robinhood
Robinhood is a commission-free trading platform known for its mobile-first experience and easy-to-use interface. It allows trading in stocks, ETFs, options, and cryptocurrencies, with fractional shares available for as little as $1. Robinhood Gold offers instant deposits and a competitive APY on uninvested cash.
Unlike Schwab, Robinhood does not offer full-service banking products like checking and savings accounts. Customer service has also been a common complaint, with slower response times compared to traditional brokers. It’s a good option for active traders who want a streamlined app, but may not be ideal for those seeking comprehensive financial services.
Ally Bank
Ally Bank remains a strong competitor in the online banking sector. It offers a high-yield savings account with an annual percentage yield (APY) of 3.85%. Ally is known for its user-friendly online platform, 24/7 customer service, and no monthly maintenance fees. These features make it an attractive option for those seeking straightforward banking solutions.
Chase Bank
Chase Bank continues to be a major player, especially with its expansive branch and ATM network. However, recent adjustments have seen the interest rate on its standard Saver account decrease to 3.25% as of February 13, 2025. Despite the rate reduction, Chase offers various account options and robust customer support, which may appeal to customers prioritizing accessibility and comprehensive banking services.
Barclays Bank
Barclays Bank offers an online savings account with competitive interest rates. The account features no monthly maintenance fees, no minimum balance requirements, and provides 24/7 secure online access to funds. These attributes make Barclays a viable option for those seeking flexibility and ease of access to their savings accounts.
Fidelity Investments
Fidelity Investments is a formidable competitor in the investment brokerage arena. It offers a wide range of investment options, including commission-free trading on stocks and ETFs. Fidelity is noted for its robust research tools and educational resources, catering to both novice and seasoned investors. Additionally, Fidelity provides several index funds with no expense ratios, offering cost-effective investment opportunities.
Vanguard
Vanguard is renowned for its low-cost investment options, particularly its index funds and ETFs. In a significant move, Vanguard announced its largest-ever reduction in expense ratios, lowering fees by an average of 20% across 87 mutual funds. This initiative could save investors approximately $350 million in 2025, enhancing Vanguard’s appeal to cost-conscious investors.
Bottom Line
Charles Schwab is a solid choice for both banking and investing, especially for those who want low fees, strong customer support, and access to a wide range of financial products. With unlimited ATM fee reimbursements, no foreign transaction fees, and commission-free stock and ETF trades, it continues to attract frequent travelers and cost-conscious investors.
However, Schwab isn’t perfect. Its savings account interest rates are lower than some competitors, cash deposits aren’t an option, and in-person banking is limited. If you’re looking for higher savings APYs, more physical branch access, or a bank that doesn’t require a brokerage account, alternative options like Ally Bank, Fidelity, or Chase may be a better fit.
Before opening an account, consider how Schwab’s strengths align with your needs. If you’re already investing with Schwab, its banking services provide an easy way to consolidate your finances under one platform. But if banking is your main focus, a dedicated online or traditional bank might offer more competitive features.
Frequently Asked Questions
What types of accounts does Charles Schwab offer?
Charles Schwab offers several accounts. These include checking accounts, savings accounts, CDs, home loans, education and custodial accounts, small business accounts and more.
Is Charles Schwab FDIC insured?
Yes. All Schwab bank accounts are FDIC insured up to $250,000 per depositor. This means that in the unlikely event of a bank failure, your funds are protected up to the insured limit. For joint accounts, coverage extends up to $500,000.
Schwab also offers SIPC protection for brokerage accounts, covering securities up to $500,000 (including a $250,000 limit for cash). While SIPC doesn’t cover investment losses, it protects against broker failure.
Is Charles Schwab Bank secure?
Since most Schwab account holders manage their deposit accounts and investment accounts online or via Schwab’s mobile app, security is of utmost importance. Fortunately, Schwab uses security measures like encryption technology, voice ID, card lock and unlock, and alerts.
Does Charles Schwab offer money market accounts?
At this time, Charles Schwab does not offer money market accounts. However, CDs, educational and custodial accounts, and traditional savings accounts are available.
Is it a good idea to bank with Charles Schwab Bank?
You should consider a Charles Schwab deposit account if you already invest with Charles Schwab or would like to in the future. Charles Schwab might also make sense if you want easy access to your funds and want to travel without worrying about ATM fees.
What kinds of trades does Charles Schwab offer?
There are a number of trades and investment options available with Charles Schwab. These include stocks, mutual funds, exchange-traded funds or ETFs, index funds, bonds, CDs, fixed income, and even cryptocurrency.
Is Charles Schwab a good option for beginner investors?
Yes! Charles Schwab can help you if you’re new to investing and would like to benefit from broker assisted trades, as well as assistance with research and support. Note that Schwab doesn’t offer paper trading, which can be useful for beginners.
What is the Schwab Starter Kit?
The Schwab Starter Kit is specifically designed for new investors. It includes $101 of Schwab Stock Slices, short videos and detailed guides on investing, budget planners, and round the clock access to professional advisors.
Can Charles Schwab support small business owners?
Absolutely! Charles Schwab’s platform offers a number of small business products, such as retirement accounts for employees, CDs, and money market funds.
What is StreetSmart Edge?
StreetSmart Edge is Charles Schwab’s trading platform. It comes with various research tools to optimize your trading strategy, such as real-time market data and valuable information from the Securities and Exchange Commission.
It also explains Schwab mutual fund OneSource, which lists the most cost-effective mutual funds. You can customize this web trading platform to meet the needs of your unique trading style.
Does Charles Schwab have a robo-advisor?
Absolutely! The bank’s automated investing service involves a robo-advisor. As long as you have at least $5,000 to invest, you can count on the robo-advisor to design and monitor your portfolio. As an automated investing customer, you can enjoy 24/7 live support for Schwab managed portfolios.
