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Charles Schwab Bank Review


ConsumersAdvocate.org Rating: 4.2 / 5 (Excellent)
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Charles Schwab Bank is a financial institution offering high-yield checking and savings accounts, as well as brokerage services and mortgage loans. Founded in 2003, the bank is a subsidiary of The Charles Schwab Corporation, one of the largest brokerage firms in the United States.
 
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How is Charles Schwab rated?

Breakdown

4.5/5
Availability/Customer Service
4.7/5
Accounts Performance and Fees
3.5/5
Financial Strength

Overall Rating: 4.2 / 5 (Excellent)

There are many reasons we consider Charles Schwab Bank as one of the best alternatives when it comes to banking. First, its minimal fees. There are no monthly maintenance fees for any of its accounts and no minimum balance requirements. It has one of the few high-yield checking accounts in the field and, with a 0.25% APY, its return rate is much higher than the competition, which averages at around 0.01% APY. In addition, for customers opening a checking account, Schwab will open a linked brokerage account, which does not have a minimum balance requirement either. Its savings account offers similar benefits: minimal fees and a fairly high APY at 0.40%.

Schwab might not have as many brick-and-mortar branches as other national banks, but it makes good use of their digital presence. Although its application does have to be downloaded and mailed or faxed, every other transaction can be conducted online. Its mobile app makes it possible to manage every account seamlessly from a mobile phone or Apple watch and gives users the ability to track stocks and make trades.

Overall, Charles Schwab offers a long list of benefits and perks for a very low cost. This, in addition to its financial stability and long history, makes it one of the top alternatives for consumer banking today.

Charles Schwab General Banking Services

Availability/Customer Service - 4.5 / 5

While many banks offer high-yield savings, Charles Schwab offers high-interest rates for both its checking and savings, with 0.25% APY and 0.40% APY respectively. Neither have minimum balance requirements or a maintenance fee. Customers who open a checking account with Schwab will also get a linked brokerage account, which does not have a minimum balance either.

Savings Accounts

Savings Account
High Yield Investor Savings
Savings Account APY (Annual Percentage Yield)
0.40%
Savings Account Fees
Insufficient Balance Fee
Passed Monthly Transaction Limit Fee
Returned Deposit Fee

Checking Accounts

Checking Account
High Yield Investor Checking Account
Checking Account Fees
Deposited Item Returned Fee
Bounced Check Fee

Additional Services

Cards
Debit/ATM Cards
Loan Products
Personal Loans
Mortgages
Mortgage Refinance
Physical Branches
Charles Schwab has 345 branches nationwide.

Other Bank Accounts

CDs
Money Market Accounts
Brokerage Accounts
Retirement Accounts
IRA
Roth IRA
Accounts for Children
Sweep Accounts
Student Accounts
Joint Accounts

Charles Schwab Digital Banking Services

Accounts Performance and Fees - 4.7 / 5

Charles Schwab's app includes everything needed to access and manage accounts from a phone or Apple watch. Aside from photo check deposit and online bill pay, users can keep up with the stock market through alerts, make trades, and manage their brokerage and IRA accounts.
Mobile App
Yes
Mobile Features
Photo Check Deposit
Digital Wallet Synching
Transfer Funds
Bill Pay
Online Banking Features
Direct Deposit
Online Bill Pay
Transfer Funds
Account Alerts (Text/Email)

Charles Schwab Financial Strength and Reputation

Financial Strength - 3.5 / 5

Charles Schwab Bank, as a subsidiary of one of the most stable and profitable brokerage houses in the country, enjoys excellent credit ratings from all major rating agencies. It has been the subject of approximately 160 complaints with the Consumer Financial Protection Agency, reporting banking errors or erroneous account closures. Its headquarters in San Francisco gets a B- grade from the Better Business Bureau with 64 complaints filed, a comparatively low amount for a bank their size.
Year Founded
2003
Standard & Poor's Financial Rating
A
Moody's Financial Rating
A2
Live Help 24/7
No
Customer Support Hours
Monday–Friday, 4:00 a.m.–8:00 p.m. PT (excluding bank holidays) / Saturday and Sunday, 6:00 a.m.–7:30 p.m. PT
Contact Methods
Phone
Email
Chat
BBB Rating
B-
BBB Total Complaints
62
Trustpilot Rating
6.4 out of 10
Consumer Financial Protection Board (CFPB) Complaints
164
Date Collected
2018-09-18

Company Profile

Full Name
Charles Schwab Bank
Company Website
https://www.schwab.com/public/schwab/banking_lending
Headquarters
2360 Corporate Circle, Henderson, NV, 89074

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Top Rated
  • $0 minimum starting deposit
  • Checking account—earn 1% cash back on up to $3,000/m in debit purchases* 
  • No monthly fees
  • Access to 60,000 free ATMs nationwide
  • High-yield money market and CDs

*See website for details

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