Yes, Schwab offers checking through its bank subsidiary

Charles Schwab Bank offers a checking account called the Schwab Bank Investor Checking account. It is a real checking account with a routing number, check-writing capability, and a debit card. You can deposit checks by mobile app, transfer money between accounts, and set up automatic bill payments. The account is FDIC-insured up to $250,000 per depositor.

Schwab does not charge a monthly maintenance fee. There is no minimum balance requirement to open or maintain the account. You can open it online in about 10 minutes if you already have a Schwab brokerage account, or as a standalone account if you do not.

The account is designed to work alongside Schwab's investment and trading services, but you do not have to use those services to hold a checking account with them. Many people use it simply as a checking account with no trading activity.

Key Takeaways

  • Schwab Bank Investor Checking is a full checking account with debit card, check-writing, and mobile deposit, with no monthly fee or minimum balance.
  • The account comes with a Visa debit card and ATM access through Schwab's network plus most other ATMs nationwide, with no ATM fees charged by Schwab.
  • You can open the account online if you already have a Schwab brokerage account, or open it as a standalone account with just an email and Social Security number.
  • Transfers between your Schwab checking account and other Schwab accounts (brokerage, savings, money market) happen instantly within the Schwab system.

How to open a Schwab checking account

If you already have a Schwab brokerage account, you can add a checking account by logging into your account online and selecting "Open an account" from the accounts menu. Choose Schwab Bank Investor Checking and follow the prompts. The process takes about 5 to 10 minutes, and your account number is issued immediately.

If you do not have a Schwab brokerage account, you can open a checking account directly on Schwab's website without opening a brokerage account first. You will need your email address, Social Security number, and basic personal information. Schwab will verify your identity and run a check against ChexSystems (a banking history database). If you pass, the account opens the same day.

Once your account is open, Schwab mails a debit card and checkbook to your address. The debit card typically arrives within 7 to 10 business days. You can request a rush card for an additional fee if you need it sooner.

What you can do with the account

You can write checks, use the debit card for purchases and ATM withdrawals, and set up automatic bill payments to other banks or businesses. Mobile check deposit lets you photograph the front and back of a check and deposit it through the Schwab mobile app. Transfers to other people's accounts at different banks take 1 to 3 business days through ACH (Automated Clearing House).

You can link the checking account to external bank accounts you own at other institutions. This lets you move money between Schwab and those accounts, though transfers out of Schwab to external banks take 1 to 3 business days. Transfers from external banks into Schwab checking also take 1 to 3 business days.

If you have a Schwab brokerage account, transfers between your checking and brokerage accounts settle instantly. This is useful if you want to move cash from checking into investments or pull money from investments back into checking without waiting.

ATM access and fees

Schwab reimburses ATM fees charged by other banks. When you use an ATM that is not part of the Schwab network, the other bank may charge a fee (usually $2 to $3). Schwab will refund that fee to your account automatically, typically within 1 to 3 business days. There is no limit on how many ATM fees Schwab will refund.

Schwab's own ATM network includes machines at Schwab branches and partner locations. Using those machines costs nothing. You can find Schwab ATMs through the mobile app or website.

Interest rates and account features

Schwab Bank Investor Checking does not pay interest on your balance. If you want to earn interest on cash you are holding, Schwab offers a separate Schwab Bank Investor Savings account that does pay interest. The rate changes based on market conditions and is posted on Schwab's website.

The checking account includes overdraft protection, which means if you overdraw the account, Schwab can automatically transfer money from a linked savings account or money market account to cover the shortfall. You can set this up during account opening or later in your account settings. If you do not set up overdraft protection and you overdraw, Schwab charges an overdraft fee (the amount varies and is shown in the account agreement).

You get online banking access, a mobile app, and phone support. You can view your account balance, transaction history, and statements online at any time. Statements are available monthly and can be viewed or downloaded from your account.

How Schwab checking compares to other banks

Unlike most banks, Schwab does not charge a monthly maintenance fee, does not require a minimum balance, and reimburses all ATM fees. Most traditional banks charge $10 to $15 per month for checking unless you meet balance or direct deposit requirements, and they charge $2 to $3 per out-of-network ATM withdrawal.

Schwab's checking account is best if you already invest with Schwab or plan to, because transfers between accounts are instant. If you do not use Schwab for investing, a checking account at a local bank or online bank may be simpler. However, Schwab's no-fee structure and ATM reimbursement make it competitive even for people who do not trade.

Schwab does not offer savings account features like high interest rates. If you want to earn interest on savings, you would need to open a separate Schwab savings account or use a different bank that specializes in high-yield savings.

Frequently Asked Questions

Can I use Schwab checking without a brokerage account?

Yes. You can open Schwab Bank Investor Checking as a standalone account without opening a brokerage account. You do not need to invest or trade to hold the checking account.

What happens if I overdraw my account?

If you set up overdraft protection, Schwab transfers money from a linked savings or money market account to cover the overdraft. If you do not set up overdraft protection and you overdraw, Schwab charges an overdraft fee. The amount is listed in the account agreement.

How long does it take to transfer money from Schwab checking to another bank?

Transfers from Schwab checking to external bank accounts take 1 to 3 business days. Transfers between your Schwab checking and other Schwab accounts (brokerage, savings) happen instantly.

Does Schwab checking pay interest?

No. Schwab Bank Investor Checking does not pay interest on your balance. If you want interest-bearing savings, Schwab offers a separate Investor Savings account.

Is my money safe in Schwab checking?

Yes. Schwab Bank checking accounts are FDIC-insured up to $250,000 per depositor. This means if Schwab Bank fails, the FDIC protects your deposits up to that limit.