Charles Schwab Savings Account Interest Rates: July 2024

Charles Schwab’s savings account interest rates tend to be slightly higher than the national average, and there are no monthly fees or account minimums. However, you can find higher annual percentage yields (APYs) from other financial institutions.

Charles Schwab Savings Account Interest Rates
Account	Balance for Highest APY	APY Range	Monthly Fee
Investor Savings	$0	0.48%	$0

Compare Charles Schwab Savings Account Rates

Charles Schwab offers many valuable banking products, but rates on its savings account—while higher than the national average—are not very high. Compare Schwab to some of the high-yield savings accounts below to find the right bank (or broker) for you.

Charles Schwab Savings Accounts: Key Features

Charles Schwab Savings Account Key Features
APY Range	0.48%
Minimum Balance to Earn Highest APY	$0
Minimum Deposit	$0
Withdrawal Limit	None
Monthly Service Fee	$0

The Schwab Bank Investor Savings account has no minimum deposit, making it a good choice for those just starting out who may struggle to come up with the high minimum deposits some other banks require. The account doesn’t have any monthly fees either, making it a useful free savings account option.

Interest on the Investor Savings account is compounded daily, and it’s added to your account on the last day of the statement period.

Typically, banks limit you to six withdrawals per month from a savings account. But Schwab indefinitely suspended enforcement of that limit, and the bank won’t take any action against customers that exceed six withdrawals.

If you’re thinking about opening an Investor Savings account, you should know that it has an unusual application process. While other banks allow you to open accounts online or over the phone, Schwab Bank requires you to download a form, fill it out, and submit it through the mail or by fax. The only exception to that rule is if you’re an existing Schwab customer and have an online account; in that case, you can sign into your account and upload the document instead.

Use Investor.gov’s compound interest calculator to find out how your money can grow with one of the best high-yield savings accounts (HYSAs).

Pros and Cons of Charles Schwab Savings Accounts

Pros

Very few fees
Good customer reviews
Unlimited ATM fee refunds

Cons

Can’t deposit cash directly
Lukewarm interest rate
Clunky application process

Pros Explained

Very few fees: The only fees you’ll pay with this account are typically avoidable. There are fees for sending wire transfers ($25), expedited shipping if you lose your card ($15), and custom checks. There are no monthly maintenance fees, excess withdrawal fees, or other charges.
Good customer reviews: The independent reviewer J.D. Power gave Charles Schwab high marks for its best-in-class checking account, and its savings account also had fairly good reviews.
Unlimited ATM fee refunds: Charles Schwab doesn’t charge any ATM fees and even goes a big step further by reimbursing you for any out-of-network fees that other operators charge. There are no limits to ATM fee reimbursements, either.

Savings accounts are typically meant for storing your money long-term rather than making frequent ATM withdrawals. However, Charles Schwab’s checking account also offers unlimited ATM fee refunds.

Cons Explained

Can’t deposit cash directly: Depositing cash has always been a challenge with online banks, but many are starting to offer services that allow you to deposit paper currency with popular nationwide retailers. Charles Schwab does not offer this type of service.
Lukewarm interest rate: Charles Schwab savings account interest rates tend to be higher than the national average, but not by much. You can usually find much higher rates elsewhere.
Clunky application process: There is no easy online application for this account. You can sign up over the phone or by printing out a paper application and submitting it in person, by mail or fax, or by uploading to your existing Schwab investment account—very strange, especially for an online savings account.

About Charles Schwab: Other Savings Options

With Charles Schwab, you can open a savings account, checking account, or credit card, and you can even take out a loan. But it doesn’t offer other savings products like certificates of deposit (CDs) or money market accounts directly—instead, it acts as a brokerage for those account types.

You can use a Charles Schwab brokerage account to invest in bonds, CDs, and money market funds. You can invest in these securities by opening a taxable investment account, individual retirement account (IRA), or a custodial account.

Charles Schwab operates over 400 branches nationwide. You can find a branch near you with the locator tool.

Alternatives to Charles Schwab Savings Accounts

Charles Schwab offers a decent savings account in terms of fees and features, especially if you plan on withdrawing cash frequently from ATMs. But the APY is quite low, so you won’t earn much compared to more competitive accounts. If you’re looking to grow your liquid savings a bit faster than what Charles Schwab Savings Account interest rates can offer, consider these other options:

High-yield savings accounts: If you’re willing to open an online savings account elsewhere, you may be able to earn rates over 10 times higher than what Charles Schwab is offering. See the best high-yield savings account rates to compare how much you could earn.
High-yield checking accounts: Some banks offer relatively high rates for checking account balances, but watch out for strict requirements and limits. The best high-interest checking accounts have great rates and give you easy access to your money, too.
Certificates of deposit (CDs): Charles Schwab actually tends to offer competitive rates on its Charles Schwab CDs available through its brokerage accounts, although CDs from other banks may suit you better.
Money market account: Again, Charles Schwab offers superior rates on its money market accounts, available on the brokerage side of its business. Check the best money market account rates to see how it compares.
Treasury securities: These government-backed bills, notes, and bonds sometimes offer even higher rates than CDs and may be more liquid.

Many types of savings vehicles—especially investments—are not always FDIC-insured.

Frequently Asked Questions (FAQs)

Is It Better to Have a Schwab Savings Account or Brokerage Account?

The best account for you depends on your goals and timeline. If you’re building an emergency fund or saving money for a specific goal and hope to accomplish it within a few years, protecting your money is the key priority. In those cases, a savings account can be the better choice; your money will not lose value, and it earns a little interest over time.

If your time horizon is longer, such as saving for your retirement in 30 years, a brokerage account is typically a better option. Because you have more time to recover from market fluctuations, investing with a brokerage account can allow you to earn higher returns.

Does Schwab Have a High-Yield Savings Account?

No—although Charles Schwab’s savings account does offer a higher yield than many other banks, it’s far from being a true “high-yield savings account” when you compare it to the best savings account rates available.

Is There a Minimum Balance Requirement for Charles Schwab Savings Accounts?

The Schwab Investor Savings account does not have a minimum deposit requirement.

How Often Does Charles Schwab Pay Interest on Savings Accounts?

With the Schwab Investor Savings account, interest on your account is compounded daily. The interest is credited to your account on the last day of the statement period.

What Do You Need to Open a Charles Schwab Savings Account?

To open a savings account with Charles Schwab, you must be at least 18, and you need to download an application. The form asks for the following information:

Name
Address
Social Security number or Taxpayer Identification Number
Date of birth
Driver’s license, passport, or government-issued ID number, country or state of issuance, issue date, and expiration date
Current bank account and routing numbers to transfer funds

After filling out the form, you have to bring it to a Charles Schwab location, fax it to (888) 526-7252, or mail it to one of the following addresses:

Regular Mail (West)
Charles Schwab & Co., Inc.
P.O. Box 982600
El Paso, TX 79998-2600
Regular Mail (East)
Charles Schwab & Co., Inc.
P.O. Box 628291
Orlando, FL 32862-8291