Charles Schwab Savings Account Interest Rates: June 2023

Charles Schwab Savings Account Rates

Charles Schwab is primarily known as a leading investment and financial services company. Besides its brokerage accounts and investment products, it also offers banking options, including the Schwab Bank Investor Savings account.

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 Accounts: Key Features

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. 

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. 

Compare 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.