How to enroll in Schwab Bank Investor Checking™

How to enroll in Schwab Bank Investor Checking™

Schwab Bank Investor Checking is an FDIC-insured Tooltip checking account linked to a Schwab One® brokerage or trust account.

You can use DocuSign® to enroll clients who are U.S. citizens or resident aliens residing in the U.S. or one of its territories and have a U.S. mailing address (or a mailing address in a U.S. territory).

To add an Investor Checking account, you will need the following:

All accounts
  • An acceptable account type, including:
    • Individual
    • Individual with designated beneficiary
    • Joint tenant
    • Joint tenant with designated beneficiary
    • Tenants in common (except trusts)
    • Community property
    • Living trust—revocable and irrevocable (trustees must be individuals, not trusts, organizations, or business entities)
       
  • A completed Schwab Bank: Add Schwab Bank Investor Checking to your Schwab One Brokerage Account (Investor Checking) form or Schwab Bank: Add Schwab Bank Investor Checking to your Schwab One Trust Account form
    • Your firm name and master account
    • The account holder's name, home address, identification number Tooltip , birthdate, telephone numbers, citizenship status, employment status, employer, occupation, business address, business phone number, mother's maiden name, passport/driver's license/U.S. government ID
    • If the account holder is affiliated with a member firm of an exchange or FINRA and Rule 3210 applies, a FINRA Rule 3210 Consent Letter
    • If the account holder is a director, control person, or affiliate ( Rule 144 Tooltip ) of a publicly held company, the name and trading symbol of the publicly held company
    • If the account is a trust, the trust name, original trust date, trust state, trust address, trust mailing address
    • Adobe® Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website)
In addition to the information above, the following may be required:
Additional features
  • If granting authority on the account to an agent other than the investment advisor, a Schwab Power of Attorney (Individual POA) form signed by all account holders
Form submission method

If using DocuSign to submit forms:

  • For existing Schwab clients, a complete Schwab Advisor Center® profile with the account holder's current email address, and mobile phone number
  • For new-to-Schwab clients, the email address and a mobile phone number
  • All clients must use either Alliance Authentication (only available when starting the envelope within Schwab Advisor Center), or, both text message (SMS) authentication and Knowledge Based Authentication (KBA) for DocuSign (available in both Schwab Advisor Center and the DocuSign Console)

To add an Investor Checking account to a brokerage account using DocuSign, follow the steps in How to use DocuSign.

  • Most Schwab forms are eligible for DocuSign. For a complete list of eligible forms, ineligible forms, and conditionally eligible forms, go to the Forms library on Schwab Advisor Center and search under, "delivery options."

This process may be used to add an Investor Checking account to a brokerage or trust account using paper forms.

  1. Go to the forms library on Schwab Advisor Center and select the applicable form below. Click Select, and select Open PDF:
    • For most accounts, use the Schwab Bank: Add Schwab Bank Investor Checking to your Schwab One Brokerage Account (Investor Checking) form
    • If the account is a trust, use the Schwab Bank: Add Schwab Bank Investor Checking to your Schwab One Trust Account
  2. Complete all necessary fields and ensure all additional features the client requested were added.
  3. Print the form(s) and obtain signatures from all account holders and agent(s). Send the signed form(s) to your Schwab service team via a Schwab Advisor Center service request or fax. If the form contains a notary seal for the trustees, mail the form and original documents to your Schwab service team.

Once you have submitted your request:

  • If the forms were submitted using DocuSign, review the What's next? section of How to use DocuSign.
     
  • When the original Schwab One brokerage account is linked to a Schwab Bank Investor Checking account, the following will occur:
     
    • The original Schwab One brokerage account remains an investment-only brokerage account, and the account number remains the same.
       
    • The current cash feature on the Schwab One brokerage account will remain the same.
       
    • Schwab One checking activity will continue to be processed in the Schwab One account during a 90-day transition period. Once your client receives new checks for their new Schwab Bank Investor Checking account, they should destroy their Schwab One checks.
       
    • Once the new Schwab Bank Visa® Platinum Debit Card is activated, the old/existing Schwab One Visa Platinum Debit Card will automatically become inactive. If the new card isn't activated, the old card will remain active for a 30-day transition period. After the 30 days:
       
      • Purchase and ATM transactions will be declined.
      • Electronic debits set up with the Schwab One Visa Platinum Debit Card number will be declined.
         
    • After the Investor Checking account is opened, your client is automatically sent the Schwab Bank Visa Platinum Debit Card. During the activation process, the client is prompted to select a new PIN.
       
    • Schwab Bank checks are sent after the end-client funds their new Investor Checking account with a minimum deposit of $100.
       
  • When the original Schwab One trust account is linked to a Schwab Bank Investor Checking account, existing payment features (checks, debit cards, Schwab BillPay®) become inactive. Debit cards are deactivated 30 days from linking the accounts. Checks and Schwab BillPay are deactivated 90 days from linking the accounts.
     
  • Schwab BillPay will continue during the 90-day transition period for brokerage accounts. Schwab will copy your client's biller list from Schwab BillPay to Schwab Bank Bill Pay™ approximately three business days after the Investor account is funded. Pending and recurring payments will not transfer. 
     
  • Electronic payments arranged directly with a merchant (e.g., utility companies, fitness clubs, etc.) must be reestablished with Schwab Bank®.
     
  • Schwab MoneyLink® electronic funds transfers and direct deposit instructions remain with the original Schwab One account, unless we are instructed otherwise.
     
  • The Investor Checking account is available on the Accounts Summary page within the Charles Schwab Bank section. Clients can click the account number to access the account details (transactions and balances).
     
  • Schwab Bank will send your client standard communications about their Investor Checking account.
     
  • If you have questions about adding Investor Checking to a brokerage or trust account, call your service team.

To select a form, go to the Forms library on Schwab Advisor Center.

Form: Schwab Bank: Add Schwab Bank Investor Checking to your Schwab One Brokerage Account
Form: Schwab Bank: Add Schwab Bank Investor Checking to your Schwab One Trust Account
Form: Power of Attorney (Individual POA)
Form: BillPay Enrollment Form
Form: Supplemental Trust Account Application for Entity Trustees
Form: Update Your Schwab or Schwab One Account
Resource: Schwab Bank Investor Checking Account: Summary of Features and Fees

Why does the account holder need to complete a new application?
Schwab Bank is a separate legal entity and operates under different regulatory agencies. This requires the account holder to complete a Schwab Bank Investor Checking account application and accept Schwab Bank's terms and conditions.

When are ATM fees rebated?
Schwab Bank deposits ATM fee rebates at the end of the statement period.

Are automatic payments and direct deposits automatically moved to the new Investor Checking account?
No. If your clients had automatic payments or direct deposits into their Schwab One account, they must reestablish them with Schwab Bank. Likewise, pending or recurring payments must be reestablished.

Can clients make deposits into their Investor Checking account in a Schwab branch or service center?
Schwab broker-dealer branches cannot accept deposits for Investor Checking accounts. Clients visiting those branches can deposit checks into their Schwab One account and move the funds online to their linked Investor Checking once the funds clear.

What are the options for depositing funds into the Investor Checking account?
For regulatory reasons, Charles Schwab & Co., Inc. cannot accept deposits designated for Schwab Bank, including the Investor Checking account. However, clients have several options for depositing funds directly into the Investor Checking account:

  • Mobile deposit
  • Transfer funds from a Schwab One account linked to a Investor Checking account
  • Direct deposit
  • Transfer funds from an outside financial institution
  • Activate the Target Balance Transfer feature
  • Mail deposit
  • Wire transfer

Can clients be notified about account activities?
Schwab Bank Investor Checking account holders can enroll on SchwabAlliance.com for custom alerts for these specific account activities:

  • Account balance is less than their custom threshold
  • Withdrawal more than custom threshold
  • Direct deposit posts
  • Returned check/ACH payment
  • Designated check number clears their account

How to add features to an account
How to deposit checks
How to establish an ACH (Schwab MoneyLink®) profile
How to set up direct deposits
How to set up Schwab BillPay®
How to submit an ACH (Schwab MoneyLink®) transfer
How to use DocuSign®
Introduction to householding
Introduction to Schwab BillPay®
Introduction to ACH (Schwab MoneyLink®)
Introduction to Schwab One® Accounts
Introduction to Schwab One Visa® Platinum Debit Card
How to submit and use Service Requests