Charles Schwab Bank, an extension of the popular Schwab brokerage group, has become one of the latest financial entities to open a consumer banking division. Schwab now offers deposit accounts to consumers via Schwab Bank, which is based online. A recent addition to the Charles Schwab Empire, the bank division has received mostly favorable reviews from consumers regarding customer service. To encourage deposits and draw in new clients, the bank has launched several enticing “high yield” checking and savings account options geared towards current clients.
Internet Based
Like INGDirect and its ilk, Schwab Bank's only branch is a virtual one located on the world wide web. While Schwab brokerage does offer select physical locations, banking with Schwab is conducted online. For customers desiring a more brick and mortar approach to banking, Schwab is probably not a good option. But for those who may already hold brokerage accounts with Schwab or find other characteristics of their accounts appealing, the bank could be worth a try.
Despite this, the bank does a good job of adding small but thoughtful perks to its customers. Checks are free (a feature that is slowly disappearing from mainstream banks) and complimentary prepaid deposit envelopes are sent to clients for future use. These small details make the online banking experience for customers a little more personal.
Schwab Bank Checking Accounts
Schwab Bank offers several types of checking accounts: Interest bearing, regular and basic checking. The monthly fees are waived on accounts which use direct deposit. A Visa debit card comes standard with checking services, now standard for most banks. The overall options seem standard for the industry, although Schwab has been leading the way in the niche of interest bearing checking accounts.
Other Account Offerings at Schwab Bank
- Savings accounts, some with with no minimum balance and direct deposit offered
- Money market accounts earning market rates, direct deposit offered
- Certificates of deposit offering terms ranging from three months and up to five years
- Option to link Schwab bank account to online Schwab brokerage account
High Yield Investor Accounts
The golden children of Schwab banking are the High Yield Investor Savings and Investor Checking account options, which are heavily marketed by the bank. The accounts feature modest rates of return, but still offer some form of interest with no minimums or regular fees. Schwab offers the high yield accounts with a variable rate to clients who currently utilize the Schwab brokerage services (aka, investors). Schwab’s online banking platform allows clients to link their 401k and brokerage accounts to their checking, which could be a streamlined option for people who already invest through Charles Schwab.