Charles Schwab Bank Review

While Charles Schwab bank does not offer the most impressive rates, they are a big player in the brokerage and banking realm. Following is more information on their history and services.

Charles Schwab Bank History

A subsidiary of The Charles Schwab Corporation, Charles Schwab Bank was first established in April 2003.  For nearly a decade, Charles Schwab Bank has grown into a reputable online banking institution, with its assets at approximately $60 billion today from over 700,000 banking accounts.  This bank review will show many of the reasons why so many people are switching over to Charles Schwab bank these days.

What makes Charles Schwab Bank different than the rest?
There are two areas in which Charles Schwab Bank separates itself from its competition, and that is name recognition and customer service.   The Charles Schwab Corporation has been around for nearly five decades, and is known for being a reputable company in the brokerage world.  As it moves into banking, one can expect to deal with a stable business that will be around for a long time.  By combining brokerage with banking, one can literally view all of their accounts at the click of the mouse button.  Customer service also differentiates Charles Schwab Bank, in that one can use mail, phone, email, or visit their headquarters in Reno, Nevada and always talk to a real person.

Products and Services offered by Charles Schwab Bank

Charles Schwab Bank offers five distinct services to choose from: checking account (three types), savings account, money market account, certificates of deposit, and mortgage loans.  All funds in deposit accounts are insured by the FDIC just like any other online bank reviewed at BankTruth.org.

As far as checking accounts, Charles Schwab Bank offers three different types: interest, regular, and basic.  Only interest checking offers a way for you to earn interest on a checking balance, but all services offer the following: Visa check card access, online banking, funds transfer, overdraft protection, direct deposit, and online bill pay.  Keep in mind that when using an ATM that is not from Charles Schwab Bank, it will only reimburse you for the first six transactions per statement period.  Another great feature worth mentioning that these checking accounts offer is no minimum opening deposit.  Most banks these days do not offer this feature, so make sure to take it into consideration when researching other online banks.

The High Yield Investor Savings Account at Charles Schwab Bank is much the same, with no minimum balance required to earn interest.  Interest by the way is compounded daily and credited monthly to the account.  There are no service charges when applying for a savings account at Charles Schwab Bank and the two features that are offered with this type of account are overdraft protection and direct deposit.

Money Market Accounts and Certificates of Deposit provide a great way for someone to invest conservatively in today’s tough times at Charles Schwab Bank.  The money market account has no minimum balance requirement to earn interest, and offers a variable rate that increases as you put more funds into it.  The certificates of deposit on the other hand require a $1,000 minimum deposit and offer terms ranging from three months to five years, with the terms automatically renewing upon maturity.  Changes to a certificate of deposit are allowed within ten day of maturity, while early withdraw penalties exist for both principle and interest.

Lastly, Charles Schwab Bank offers lending services when purchasing a home.  Charles Schwab Bank offer fixed loans, adjustable rate mortgage (ARM) loans, as well as plus loans.  What is great about Charles Schwab Bank is that on its website it shows the (updated daily) mortgage rates of not only itself, but also five of its largest competitors, thus providing a great research tool to those looking for the best mortgage rates around.

Conclusion of Charles Schwab Bank Review

It is certainly understandable why Charles Schwab Bank has garnered such a large following in less than a decade with all of the great services that it offers.  One downside is that it does not offer any banking branches nationally, but if you are looking for a great online bank with a reputable name consider going with Charles Schwab Bank.