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Schwab Bank High Yield Investor Checking

Reviewed
August 2010
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Schwab Bank High Yield Investor Checking

Best online checking account

Pros
  • Pays interest on free checking
  • No minimum balance
  • Unlimited ATM fee reimbursements for withdrawals
  • Integrates with free savings, brokerage accounts
Cons
  • Yield can't compete with reward checking
  • ATM fees not reimbursed for balance inquiries
  • Can deposit only into brokerage account at Schwab offices

Though Charles Schwab doesn't pay the highest interest rates available, reviews say that Schwab Bank High Yield Investor Checking is a free checking account that does earn the average annual percentage yield (APY). Reviewers also praise Charles Schwab for unlimited reimbursement of ATM fees for withdrawing funds (though fees for balance inquiries aren't eligible). Checks are free, online bill paying is free, and you get a free brokerage account at the same time. None of the accounts incur monthly fees or require a minimum balance, and of course it's easy to transfer money among them. For an online banking account with more than 18,000 ATMs nationwide, reviewers recommend Bank of America, although the free checking account earns no interest.

We found the most credible review of the Schwab Bank High Yield Investor Checking account at Kiplinger.com. BankRate.com provides an even more recent comparison of interest-paying checking accounts online. A well-regarded blog, Bank Deals, reviews online checking at Charles Schwab in more detail in its regularly-updated review. The review at eMoneyCentral.com is brief but recent, and the user reviews at BankFox.com flesh out some details.

Our Sources

1. Kiplinger.com

Schwab Bank High Yield Investor Checking is named the best bank account for online checking by Kiplinger.com's editors for the second year running. The interest rate on checking accounts at Charles Schwab has decreased since this review, but it's still quite competitive.

Review: 2009 Best List: Credit and Banking, Editors of Kiplinger.com, December 2009

2. Bankrate.com

This chart rates checking accounts from major banks according to interest paid and opening balance. Most banks require $100 or even $1,500 to open an account. Rates and other information are updated regularly.

Review: Checking Rates -- Internet-Based, Editors of BankRate.com

3. Bank Deals

This older review discusses the Schwab Bank High Yield Investor Checking account, but notes that you can't make deposits at Schwab branches. Furthermore, although the checking account is FDIC-insured, the brokerage account is not. The entry has been updated regularly, most recently in February 2010, to track changes in the APY.

Review: Charles Schwab's New 4.25-Percent Free Checking Account, Editor of Bank Deals, April 26, 2007

4. eMoneyCentral.com

This brief review of the Schwab Bank High Yield Investor Checking account notes that although the interest rate on checking has declined, the Charles Schwab account is still a good deal, especially with the worldwide ATM fee reimbursements.

Review: Schwab Bank Investor Checking Account, Editors of eMoneyCentral.com, April 27, 2009

5. BankFox.com

BankFox.com allows easy comparison of banks and bank accounts, with customizable search parameters. Charles Schwab ranks highest among online checking accounts, with half a dozen customers giving Schwab high praise.

Review: Charles Schwab Bank Reviews, Contributors to BankFox.com

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