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Charles Schwab Bank Review 2024

Updated January 23, 2024
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At a glance

4.0
Rating: 4 stars out of 5
Bankrate Score
Caret Down

Checking

Rating: 4.8 stars out of 5

Savings

Rating: 3.5 stars out of 5

About Bankrate Score

Overview

While it’s best known for its investment accounts, Charles Schwab also offers online banking products that consist of a savings account and a checking account. Customers receive perks such as unlimited reimbursement of ATM fees from anywhere around the globe, as well as a checking account that earns interest. If you’re setting your sights on a savings account with a highly competitive annual percentage yield (APY), however, you won’t find it here.

Highlights

  • Low Min Deposit
  • ATM Fee Refunds
  • Free Checking
Compare offers
Info
Bank logo
Member FDIC.
Savings Account
5.25
%
APY
APY
Info
As of 4/13/2024
Rating: 5 stars out of 5
$0
Min. balance for APY
View offer Arrow Right
Promoted offer: No fees. Easy deposits and quick withdrawals.
Bank logo
Member FDIC
Savings Account
4.30
%
APY
APY
Info
As of 4/13/2024
Rating: 4.9 stars out of 5
$1
Min. balance for APY
View offer Arrow Right
Promoted offer:
Bank logo
Member FDIC
Savings Account
5.00
%
APY
APY
Info
As of 4/13/2024
Rating: 4.9 stars out of 5
$0
Min. balance for APY
View offer Arrow Right
Promoted offer: Plus, no monthly fees and unlimited free external transfers

Overall

Charles Schwab Bank is ideal for consumers looking for fee-free access to ATMs all over the world, as well as a checking account that pays some interest. The federally insured bank also offers a savings account, and it’s a convenient choice for anyone who wishes to keep their investment and bank accounts all in the same place. While the bank accounts are online-only, Schwab consistently ranks high for customer satisfaction among online banks.

Pros

  • Checkmark

    The checking account bears interest.

  • Checkmark

    The bank provides unlimited reimbursement of ATM fees.

  • Checkmark

    There’s no minimum balance requirement.

Cons

  • The savings account pays a lackluster rate.

  • Branches only provide services for investing and not for banking.

  • No CDs or money market accounts are available.

Charles Schwab banking products

3.5
/5
Rating: 3.5 stars out of 5
See methodology Compare savings rates
SCORE BREAKDOWN
APY offering:
0.48%
Rating: 2 stars out of 5
2/5
Info
Minimum balance to earn interest:
$0.00
Rating: 5 stars out of 5
5/5
Info
Monthly service fee:
$0.00
Rating: 5 stars out of 5
5/5
Info
Minimum balance to avoid fee:
$0.00
Rating: 5 stars out of 5
5/5
Info
Access to funds:
Great
Rating: 5 stars out of 5
5/5
Info
FEATURES
Invest Rate
0.48% APY
Info
Loan
$0 minimum deposit to open

Charles Schwab savings overview

Charles Schwab Bank’s Investor Savings account requires no minimum balance, charges no monthly service fees and provides unlimited ATM fee rebates worldwide. Ways to add funds to the account include setting up direct deposit, making transfers from other bank accounts or making a mobile check deposit — although there’s no way to deposit cash into the account.

The account pays an APY that’s below average, as many other online banks offer much higher savings yields.

Pros

  • Checkmark

    There are no monthly fees or minimums.

  • Checkmark

    Customers get unlimited ATM rebates worldwide.

Cons

  • Significantly higher APYs can be found elsewhere.

  • New customers need to complete a paper application.

  • Cash deposits are not an option.

  • See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

    Charles Schwab
    APY
    APY
    Info
    National average APY
    How do we get this data?
    Info
Compare Offer
Info
Bank logo
Member FDIC.
Savings Account
5.25
%
APY
APY
Info
As of 4/13/2024
Rating: 5 stars out of 5
Info
$0
Min balance for APY
View offer Arrow Right
Promoted offer: No fees. Easy deposits and quick withdrawals.

Bank fees

Fee Charged?
Overdraft fee None
Non-sufficient funds fee None
Account maintenance fees None
Out-of-network ATM fee None
Foreign transaction fee None

About Charles Schwab Bank

Charles Schwab Bank, SSB is a subsidiary of The Charles Schwab Corporation, a financial services company that offers consumer banking, retail banking, asset management and investment services. Charles Schwab Bank offers online savings and checking accounts, as well as credit cards and loans.

In total, The Charles Schwab Corporation manages more than $8 trillion in client assets, with 1.8 million bank accounts, 34.7 million active brokerage accounts and 5.2 million corporate retirement plan participants, as of November 2023. It purchased brokerage platform TD Ameritrade in 2020 and is in the process of integrating the two companies.

Customer experience

Customer service. Customer service is available by phone Monday through Friday from 4 a.m. to 8 p.m. PT, as well as Saturday and Sunday 6 a.m. to 7:30 p.m. PT. Live online chat support is also available. 

Digital access. Customers are able to access their bank accounts and any Schwab investment accounts all in the same place through the website and the mobile app. Apple users rate the app highly, but its average rating on the Google Play store is only 2.5 stars. 

High customer satisfaction. In 2023, Charles Schwab Bank ranked the highest in J.D. Power’s U.S. Direct Banking Satisfaction Study, among online banks that provide checking accounts. The bank has held the top ranking for five consecutive years. 

Review methodology

With so many financial institutions to choose from, it can be hard to know who to trust. Bankrate’s ever-growing list of bank and credit union reviews is updated regularly. Our editorial team analyzes and reviews each institution across deposit products such as savings accounts, checking accounts, certificates of deposit (CDs) and money market accounts (MMAs). Banks are rated by important factors such as offered interest rates, fees, minimum balance requirements, access to funds and more.

We assign a score to each type of account and its features, weigh them carefully based on importance to account holders and determine an overall score. Read our full review methodology.