Charles Schwab Savings Account Interest Rates: April 2024 (2024)

Vault’s Viewpoint on Charles Schwab

• Charles Schwab offers a no-fee savings account.
• The current interest rate for Schwab Bank Investor Savings is 0.48% APY.
• Schwab’s application process can be cumbersome, as it requires most applicants to apply by mail or fax.

Overview of the Charles Schwab Savings Account

Savings accounts are a useful way to prepare for a rainy day and/or unexpected costs. Unlike a checking account, savings accounts are not meant for daily transactions. Instead, they’re meant to be a place to store for your longer-term goals.

The Schwab Bank Investor Savings account is a free account, with neither a monthly service fee nor an account minimum, meaning it can be a good option for a variety of financial situations.

In addition, the account provides unlimited ATM fee rebates worldwide. If you go on a trip or need to withdraw money from the account at a non-Schwab ATM, Charles Schwab will reimburse you for any fees charged by the ATM at the end of the month. You can also use the Schwab Mobile app to track your savings on the go.

Pros

There are many reasons to consider opening a new savings account with Charles Schwab, especially if you’re already investing with its brokerage arm. Explore some of the benefits of the account below:

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• No monthly fees
• On-the-go account access with the Schwab Mobile app
• Interest compounds daily and is paid monthly

Cons

Although the Schwab savings account has no monthly fee, the Charles Schwab savings interest rate is not one of the best on the market. Explore some of the downsides to the account offering below:

• APY is much lower than high-yield savings accounts
• Can’t open a savings account online unless you have another Schwab account

How Much Can You Earn With a Charles Schwab Savings Account?

The Schwab Bank Investor Savings account offers a 0.48% APY that’s compounded daily. That means at the end of each month, Schwab will credit your account with the interest earned on your account balance. To make it easier, see the chart below showing your potential earnings based on a $10,000 deposit into your account.

To determine estimated earnings for an account, you can use the compound interest calculator offered by the U.S. Securities and Exchange Commission at Investor.gov.

How to Open a Savings Account With Charles Schwab

If you’re ready to open a savings account with Charles Schwab, you can follow the steps below. Keep in mind the steps vary depending on whether or not you have a current Schwab account.

For customers new to Charles Schwab, you will:

• 1. Visit the Charles Schwab website to download the application form.

• 2. Fill out the application form, providing all the required information requested in the document:
  • a. Name
  • b.Social Security number or Tax ID number
  • c. Address
  • d. Date of birth
  • e. Mailing address (if different from address)
  • f. Phone number
  • g. Email address
  • h. Passport, driver’s license or government-issued ID
  • i. Current bank account number and routing information

• 3. Print your application and fax or mail it to Schwab at the address listed on the form. If you live near a Charles Schwab physical branch, you can submit the form to the branch for approval.
• 4. If approved, deposit funds into your new account.

Current Charles Schwab customers can follow the steps above but will have the option to upload the application online in step three.

Alternatives to a Savings Account With Charles Schwab

In this section, we’ll share some additional savings account offerings for your consideration. All of the accounts listed below are FDIC-insured. Always review all the information about the account and company before creating an account.

Marcus Online Savings Account

The Marcus by Goldman Sachs Online Savings Account has a 4.50% APY. This is a higher rate than the Schwab account and nearly 8X the national average. The Marcus account has no fees or deposit minimums, making it an accessible option for all people looking to create a new savings account.

In addition to having a mobile application to track your savings on the go, Marcus allows you to create an account online. The Marcus app also provides financial planning tools to gain insights into your spending and saving habits, which some may find helpful for understanding their overall financial performance and health. The account also offers referrals that can increase the interest rate on your account for a set period.

American Express High Yield Savings Account

The American Express’ High Yield Savings Account features a 4.25% APY—higher than the Charles Schwab rate. This account is an online-only experience, as American Express offers no in-person branches for support. Account users have access to an online portal for tracking their savings account and can deposit funds online as well.

The American Express High Yield Savings Account has no monthly fees or minimum balance requirements. Its interest is compounded daily and deposited into your account monthly, so your savings can begin to grow quickly.

Capital One 360 Performance Savings Account

Capital One offers the Capital One 360 Performance Savings Account that comes with a 4.25% APY. Similar to both Marcus and American Express, you can apply for this account online and get approved instantly. This account has no monthly maintenance or service fees, and Capital One has just under 300 branches across the country.