EmailBest Reviewed
Online Banking
- Most flexible online banking Bank of America *Est. $0
- Best online checking account Schwab Bank High Yield Investor Checking *Est. $0
- Best online savings account FNBO Bank *Est. $0
- Online savings for special occasions, events SmartyPig *Est. $0
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Best online checking account
- Pays interest on free checking
- No minimum balance
- Unlimited ATM fee reimbursements for withdrawals
- Integrates with free savings, brokerage accounts
- 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 anywhere near 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 over 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 2007 review. The review at eMoneyCentral.com is brief but recent, and the forum discussion at FatWallet.com fleshes out some details.
Our Sources
1. Kiplinger.comDetails/Subscribe
Schwab Bank High Yield Investor Checking is named the best bank account for online checking by Kiplinger's editors. The interest rate on checking accounts at Charles Schwab has decreased since this review, but it's still quite competitive.
Review: 2008 Best List: Best Financial Services, Editors of Kiplinger.com, Dec. 2008
2. Bankrate.com
A search for Internet-based checking accounts that pay interest produces four online banks, including the Schwab Bank High Yield Investor Checking account. It's the online banking account that offers the most interest with the lowest minimum opening balance (*Est. $1); most require $100 or even $1,500.
Review: Checking Rates – Internet Based, Editors of BankRate.com
3. Bank Deals
This blog has earned praise in credible publications, including The Wall Street Journal, USA Today, Money magazine and The New York Times. 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.
Review: Charles Schwab's New 4.25-Percent Free Checking Account, Editor of Bank Deals, April 26, 2007
This brief review of the Schwab Bank High Yield Investor Checking account notes that although the interest rate on checking has declined a lot, 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
This forum discussion of the Schwab Bank High Yield Investor Checking account notes that you can only make deposits to your brokerage account at Charles Schwab branches; to put that money into your checking account, you must then transfer the money online. Participants discuss other details here and compare account offerings at Charles Schwab with those of Fidelity.
Review: Charles Schwab 2.01% Checking Account, Contributors to FatWallet.com
Online Banking Runners Up:
5 picks by top review sites.
4 picks including: Bankrate.com, Forbes…
4 picks by top review sites.