Introduction to Schwab Bank Investor Checking™ accounts

Introduction to Schwab Bank Investor Checking™ accounts

Schwab Bank Investor Checkingis an FDIC-insured Tooltip  checking account linked to a Schwab One® brokerage account. It can be used to hold everyday cash while keeping checking transactions separate from a client’s brokerage account. Schwab Bank Investor Checking provides a full range of cash management features including real-time funds transfers between the checking account and Schwab One® brokerage accounts. It also offers a Schwab Bank Visa® Platinum Debit Card, Schwab Bank BillPay®, free standard checks, and DocuSign® can be used to enroll your clients.

Accounts can be opened only for U.S. citizens or resident aliens who reside in the U.S. or one of its territories and have a U.S. mailing address (or a Puerto Rican mailing address if living in Puerto Rico).

In addition to a variable interest rate (may change without notice) on any balance, key features related to Schwab Bank Investor Checking include:

No monthly fees
  • Unlimited ATM fee rebates worldwide*
  • No foreign exchange transaction fees for purchases made with the Schwab Bank Visa® Platinum Debit Card.
  • No fee to use Schwab Bank BillPay to pay bills online or through Schwab Mobile2
  • Overdraft protection
  • No monthly service fees

Free standard checks and a Schwab Bank Visa® Platinum Debit Card. Transfer funds between Schwab Bank Investor Checking and Schwab One brokerage accounts, and with accounts at other U.S. financial institutions free of charge (Account holders may set up fund transfers via their Schwab Alliance Service Team at 800-515-2157. No fees for fund transfers between Schwab One brokerage and Schwab Bank Investor Checking accounts).

Note: Once your Investor Checking account is funded, you will receive Visa® Platinum Debit Card(s) from Schwab Bank. Personalized checks will be sent once your Investor Checking account is funded with at least $100. 

Increased flexibility through mobile access
  • Deposit checks using Schwab Mobile Deposit™§
  • Schwab Alliance can be used to manage brokerage and banking services
Enhanced security
  • FDIC insurance up to $250,000, per depositor, per insured bank, based on account type and ownership**
  • Schwab Security Guarantee
  • Advisors able to monitor Schwab Bank Investor Checking account balances and transaction history, including check issue images (front/back) on Schwab Advisor Center®
  • Advisors can elect to view Schwab Bank Investor Checking transactions and balances through a SchwabLink® master account
  • You will have the same authorizations on the Schwab Bank Investor Checking account that you have on the linked Schwab One brokerage account
  • A new SchwabLink® master for Schwab Bank Investor Checking accounts must be established to download the Schwab Bank Investor Checking data via SchwabLink (SL). Schwab Bank Investor Checking data is part of a separate data feed. A new SL master is not required to view Schwab Bank Investor Checking account data on Schwab Advisor Center.
Customized alert notifications

Schwab Bank Investor Checking account holders can enroll on SchwabAlliance.com in custom alerts for these specific account activities:

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

To learn about additional features of the Schwab Bank Investor Checking account, refer to the following information.

FeatureDescription
Schwab Bank Visa Platinum Debit CardEach account holder receives a Schwab Bank Visa Platinum Debit Card to use at ATMs and participating merchants once the account is open.
Unlimited ATM fee rebatesUsing the Schwab Bank Visa Platinum Debit Card, clients can withdraw cash at any ATM and receive unlimited rebates for ATM fees.
No foreign transaction feesWhen the account holder uses the Schwab Bank Visa Platinum Debit Card to withdraw foreign currency from an ATM or pays for a purchase with foreign currency, Schwab Bank charges the account only for the U.S. dollar equivalent of the transaction. There is no additional percentage added for the foreign currency transaction. See the Schwab Bank Visa Platinum Debit Card Agreement for details.
Schwab Mobile applicationClients can check balances, review transaction history, transfer funds, and pay bills. With Schwab Mobile Deposit, clients can make deposits by photographing their checks. The Schwab Mobile Deposit service is subject to certain eligibility requirements, limitations, and other conditions. Enrollment is not guaranteed, and standard hold policies apply. Use requires a wireless signal or mobile connection.
Schwab Bank BillPayAccount holders are automatically enrolled in Schwab Bank BillPay when their Schwab Bank Investor Checking account is funded, unless they request otherwise within the Schwab Bank Investor Checking Features section of the Schwab Bank: Add Schwab Bank Investor Checking to Your Schwab One® Brokerage Account (Investor Checking) form.
Target balance transferThis optional feature allows clients to designate a minimum amount ("target balance") for their Schwab Bank Investor Checking account. If the balance falls below the target, funds from the linked Schwab One brokerage account are transferred to bring the balance back to the specified minimum. Transfers occur in the morning each business day.
CheckwritingStandard-style checks are free and unlimited. Clients receive deposit slips and pre-addressed, postage-paid deposit envelopes with their checkbooks once the account's $100 minimum funding requirement is met. Clients can order additional checks, deposit slips, and envelopes online.
Account protectionThe cash assets in Schwab Bank Investor Checking accounts are FDIC-insured Tooltip . Assets in linked Schwab One brokerage accounts are protected by SIPC. Refer to How client assets are protected at Schwab for additional information.
HouseholdingSchwab aggregates the asset balances and activities of household accounts to determine applicable benefits such as lower commission rates and fee waivers in your brokerage account.

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

To learn more about Schwab Bank Investor Checking account eligibility requirements, refer to the following information.

The registration of a Schwab Bank Investor Checking account is required to be the same as the registration for the Schwab One account to which it is linked. The following types of account registrations are eligible for Schwab Bank Investor Checking:

Eligible accountsIneligible accounts
  • Community property
  • Individual
  • Individual with designated beneficiary plan
  • Joint tenant
  • Joint tenant with designated beneficiary plan
  • Living trust
  • Tenants in common
  • All tenants by entirety
  • Charity for nonprofit
  • Charity for profit
  • Community property with defined benefit plan
  • Community property with rights of survivorship
  • Conservatorship
  • Corporate
  • Custodial
  • Doing business as (DBA)
  • Estate
  • Fiduciary trust
  • Guardianship
  • Roth IRA
  • Traditional IRA
  • Custodial IRA
  • Sep IRA
  • Simple IRA
  • Investment club
  • Limited liability company
  • Non-incorporated association
  • Omnibus
  • Partnership
  • Personal choice retirement account custodial
  • Personal choice retirement account trust
  • Pension trust master account
  • Retirement Plan Services custodial plan (RPSCP)
  • Retirement Plan Services trust plan (RPSTP)
  • Sole proprietor
  • Tenants in common trust accounts
  • Testamentary trusts
  • Usufruct

Each trustee and beneficiary must be an individual (not an organization or other non-individual entity). All account owners must be at least 18 years of age and U.S. citizens or U.S. resident aliens, reside in the U.S. or one of its territories, and have a U.S. mailing address.

Can clients transfer funds between their Schwab Bank checking and savings accounts online?

Temporary Suspension of Transaction Limits
Based on changes to certain federal regulations made in response to COVID-19, effective May 2020 and until further written notice is provided, Schwab Bank has indefinitely suspended enforcement of provisions in the Schwab Bank Deposit Account Agreement that limit the number of certain types of withdrawals and transfers from Schwab Bank Investor Savings accounts to a total of six (6) each monthly statement cycle. This change means that clients may make withdrawals and transfers from their Investor Savings account without limit, and Schwab Bank will not take action to convert or close Investor Savings accounts based on the number of withdrawals and transfers made.

Why does the Schwab Bank Investor Checking interest rate fluctuate?
The Schwab Bank Investor Checking has a variable interest rate, and it's possible that the rate will change (up or down). If a client is looking for a long-term fixed rate and does not need transaction functionality, they should consider a Certificate of Deposit (CD) rather than a variable interest rate checking account. Note: Schwab Bank does not offer Certificate of Deposit products. For current interest rates, visit schwab.com/checking or call toll-free 888-403-9000.

Can clients use Schwab Mobile Deposit to deposit checks?
Yes. The Schwab Mobile Deposit feature is integrated into the existing Schwab Mobile application and is available on supported smartphones or devices. This feature enables approved clients to photograph checks using their smartphone and transmit them to Schwab for deposit. Approval is required for mobile deposit.

Can clients use their Schwab One checks, Schwab One Visa Platinum Debit Cards, and Schwab BillPay® on their Schwab One account after they have opened a Schwab Bank Investor Checking account?
Yes, but only temporarily. Schwab One cash management features will remain active for a limited time to give the client an opportunity to transition to the Schwab Bank Investor Checking account features. After this limited time, all Schwab One payment features will be closed and a client may use those on the Schwab Bank Investor Checking account only.

  • 30 days for Schwab One Visa Platinum Debit Card transactions
  • 90 days for Schwab One checks, direct deposits, and automatic debits
  • 90 days for Schwab BillPay

What is a target balance and how does it work?
A target balance amount is a predetermined minimum daily balance that the client wants to maintain in their Schwab Bank Investor Checking account. When the account balance goes below the target balance amount, cleared funds from the linked Schwab One account are automatically transferred into the Schwab Bank Investor Checking account to raise the balance. However, a target balance transfer does not move funds back into the Schwab One account when the Schwab Bank Investor Checking account balance exceeds the target balance amount.

How to add features to an account
How to enroll in Schwab Bank Investor Checking
How to set up direct deposits
Introduction to householding
Introduction to margin
Introduction to pledged asset accounts
Introduction to Schwab Alliance
Introduction to Schwab BillPay®
Introduction to Schwab MoneyLink®
Introduction to Schwab One® accounts
Introduction to Schwab One Visa® Platinum Debit Card

See the following tools and resources to assist you with the Schwab Bank Investor Checking accounts:

Contact the Schwab Bank Regional Banking Manager Hotline at 800-497-7470

Charles Schwab & Co., Inc. and Charles Schwab Bank, SSB, are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products, including the Schwab One brokerage account, are offered by Charles Schwab & Co., Inc., Member SIPC. Deposit and lending products, including the Investor Checking account, are offered by Charles Schwab Bank, SSB, Member FDIC and an Equal Housing Lender.

1. The Schwab Bank Investor Checking account is available only as a linked account with a Schwab One® brokerage account. The Schwab One brokerage account has no minimum balance requirements, minimum balance charges, minimum trade requirements, and there is no requirement to fund this account, when opened with a linked Investor Checking account

2. Schwab Mobile Access requires a wireless signal or mobile connection. Access to Electronic Services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade, maintenance, or for other reasons.

Functionality may vary by operating system and/or device. Mobile carrier data charges may apply.

*Unlimited ATM surcharge rebates apply to cash withdrawals using the Schwab Bank Visa® Platinum Debit Card wherever it is accepted. ATM surcharge rebates do not apply to any fees other than fees assessed for using an ATM to withdraw cash in local currency from your Schwab Bank account. Schwab Bank makes its best effort to identify those ATM surcharges eligible for rebate, based on information it receives from Visa and from ATM operators. In the event that your client has not received an eligible surcharge, please call a Schwab Alliance Service team member at 800-515-2157. Schwab Bank reserves the right to modify or discontinue this ATM surcharge rebate at any time.

†If your client uses their card to withdraw foreign currency from an ATM or to pay for a purchase with foreign currency, Schwab Bank charges their account for the U.S. dollar equivalent of the transaction. Depending on the specific arrangements that are in place, the exchange rate and calculation of the U.S. dollar equivalent will be done by the bank at which your client conducts the transaction, the network to which the ATM belongs, or Visa.

‡ Schwab Bank Investor Checking offers overdraft protection from your linked Schwab One® Brokerage Account. Overdraft protection using margin sources may create a margin loan in your Schwab One brokerage account that may be subject to daily interest charges, margin calls, or potential liquidation of securities. Refer to the Schwab Bank Deposit Account Agreement and Schwab One Account Agreement for further details.

§Schwab Mobile Deposit service is subject to certain eligibility requirements, limitations, and other conditions. Enrollment is not guaranteed, and standard hold policies apply. Requires a wireless signal or mobile connection. Access to Electronic Services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade, maintenance, or for other reasons. Functionality may vary by operating system and/or device. Mobile carrier data charges may apply. 

**Funds deposited at Charles Schwab Bank, SSB, are insured in aggregate up to $250,000, per depositor, per insured bank, based on account ownership type, by the Federal Deposit Insurance Corporation (FDIC).

Pricing information in the Charles Schwab Institutional Pricing Guide supersedes this sheet or any prior pricing details and notices you may have received. Charles Schwab reserves the right to change or waive fees at its discretion.

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